01—Abstract
Summary
Summary of the 8-K filed August 19, 2026. Cited figures are marked; the original filing is the authoritative source.
TJX Companies reported second-quarter Fiscal 2027 results (quarter ended August 1, 2026) that beat its internal plan on most measures.
Net sales rose 5% to $15.2 billiona and consolidated comparable sales grew 4%, with HomeGoods, TJX Canada and TJX International delivering 6-7% comps while Marmaxx (U.S.) was weaker at +1%. Reported diluted EPS was $1.36, up 24%, but this includes a $0.14 net benefit from IEEPA tariff refunds; adjusted diluted EPS was $1.22, up 11%. Reported pretax margin was 13.3%, while adjusted pretax margin was 11.9%, up 0.5 points year over year, so investors should weigh the underlying improvement as modest relative to the headline figures.
Management raised full-year Fiscal 2027 pretax margin guidance to 12.3%-12.4% (adjusted 12.0%-12.1%) and diluted EPS guidance to $5.31b-$5.36 (adjusted $5.15-$5.20), while keeping comparable sales growth at 3%-4%. The company expects further tariff refunds in the third quarter, but their amount, timing and likelihood remain uncertain. Capital returns remain strong: $1.3 billion was returned in the quarter, and the company still expects to repurchase $2.75-$3.0 billion of stock in Fiscal 2027.
TJX also plans to accelerate store growth to 4%c beginning in Fiscal 2028 and raised its long-term global store target to 7,500 stores. The filing is an 8-K furnished under Item 2.02 with the earnings press release as Exhibit 99.1.
Because it is furnished rather than filed, it is not incorporated into other securities filings under Section 18 of the Exchange Act. Key risks for investors include the one-time nature of tariff refunds, softness at Marmaxx, and the store-wage cost pressure that drove SG&A deleverage.
02—Key points
Key Highlights
- Net sales rose 5% to $15.2 billion; consolidated comparable sales grew 4%, above plan.
- Reported diluted EPS of $1.36 (up 24%) includes a $0.14 tariff refund benefit; adjusted EPS of $1.22 rose 11%.
- Reported pretax margin of 13.3% (up 1.9 points) included a 1.4-point tariff refund benefit; adjusted margin was 11.9%, up 0.5 points.
- Marmaxx (U.S.) comps were only +1% versus +6-7% at HomeGoods, TJX Canada and TJX International.
- Full-year FY27 guidance raised: pretax margin 12.3%-12.4% and diluted EPS $5.31-$5.36, including tariff refund benefits; adjusted EPS $5.15-$5.20.
- Returned $1.3 billion to shareholders in Q2 and expects $2.75-$3.0 billion in buybacks for FY27; store growth to accelerate to 4% from FY28 with a 7,500-store long-term target.
- Inventories rose 7% to $7.9 billion, with per-store inventory up 2% reported, positioning for fall assortments.
03—Questions
Frequently Asked Questions
How much of the EPS increase came from one-time tariff refunds?
The net tariff refund benefit was $0.14 per diluted share in Q2, which accounts for the gap between reported EPS of $1.36 and adjusted EPS of $1.22. Excluding it, EPS growth was 11% rather than 24%. Management expects a further $0.06 benefit in Q3 and $0.16 for the full year, and the amount of future refunds remains uncertain.
What is driving the weakness at Marmaxx?
Marmaxx, the U.S. TJ Maxx and Marshalls business, posted +1% comparable sales against +3% a year earlier and was below management's expectations. Its segment margin also fell to an adjusted 14.2%. Management said Marmaxx improved at the start of Q3, but the filing does not give a detailed cause.
What is the outlook for the rest of Fiscal 2027?
For Q3, TJX expects comparable sales of 2%-3%, a reported pretax margin of 12.8%-12.9% (adjusted 12.3%-12.4%), and diluted EPS of $1.36-$1.38 (adjusted $1.30-$1.32). For the full year it continues to expect comparable sales of 3%-4%, with raised margin and EPS guidance.
Why are operating expenses rising, and what does it mean for margins?
SG&A rose to 20.3% of sales from 19.5%, or 19.7% adjusted, driven by incremental store wage and payroll costs. Gross margin improved on merchandise margin gains. Investors should watch whether wage pressure continues to offset merchandise margin improvements.
What are the long-term growth plans?
TJX plans to raise store opening growth to 4% starting in Fiscal 2028 and increased its long-term global store target by 500 to 7,500 stores within its existing banners and countries. The store base was 5,285 at quarter end, after a net increase of 23 stores in the quarter.
04—Continue