TJX Companies opened fiscal 2027 with a sharp profit jump, as first-quarter net sales rose 9% to $14.3 billion from $13.1 billion a year earlier and diluted earnings per share climbed to $1.19 from $0.92.
Comparable sales increased 6% in the quarter, driven by a higher average basket and more customer transactions. The company said apparel comp sales and home comp sales both tracked the consolidated comp increase. Store count and selling square footage were each up about 3% from a year earlier.
Profitability improved materially. Pre-tax margin widened to 12.0% from 10.3%, while cost of sales, including buying and occupancy costs, fell to 68.7% of net sales from 70.5%. TJX said the improvement came from higher merchandise margin, favorable year-over-year mark-to-market adjustments on inventory and fuel hedges, and leverage on stronger comp sales. SG&A edged up to 19.5% of sales from 19.4%.
Net income reached $1.3 billion, compared with about $1.0 billion in the prior-year quarter. The effective tax rate declined to 22.6% from 23.0%, helped by a larger excess tax benefit from share-based compensation and a benefit from acquired federal tax credits, partly offset by lower benefits from audit settlements.
Interest income improved as well. Net interest income was $35 million, versus $30 million a year ago, as interest income rose to $53 million from $48 million, reflecting a higher average cash balance, partly offset by lower prevailing rates.
TJX returned $1.1 billion to shareholders in the quarter through dividends and share repurchases.
Inventory levels were also higher. Consolidated average per-store inventories, including distribution center inventory and excluding e-commerce, were up 7% at quarter-end versus the same period last year.
E-commerce remained a small piece of the business, at about 2% of total sales in both the current and prior-year first quarters.
The company also disclosed that it has paid about $490 million in tariffs imposed under the International Emergency Economic Powers Act. After a February 2026 Supreme Court decision invalidated those tariffs, TJX said it filed refund claims after quarter-end under the first phase of the Customs and Border Patrol process and had received an immaterial amount in refunds as of May 29, 2026.
TJX said the quarter’s 9% sales growth reflected a 6% comp increase, 2% from non-comp sales, and a 1% foreign currency benefit. Today the company's shares have moved -0.03% to a price of $154.845. For more information, read the company's full 10-Q submission here.
