For the period ending 1 August 2026, the company’s net sales reached $15.2bn, a 5% rise, compared to the same period last year.
The company’s Marmaxx segment, which covers its flagship US apparel chains T.J. Maxx and Marshalls, registered a lower-than-expected result in comparable store sales growth of just 1% whilst net sales rose 3%.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
By contrast, international operations delivered robust growth, as TJX International, which covers Europe and Australia, recorded a 7% increase in comparable store sales, while comparable sales in Canada rose by 6%.
During the earnings call, TJX CEO Ernie Herrman attributed the underperformance in the US to “self-inflicted” errors in merchandising, citing challenges in distributing the correct clothing assortments to stores at the right moments.
“We are convinced that the issues were self-inflicted and within our control, and we have made good progress working through them. We are seeing improvement at Marmaxx to start the third quarter and are confident that we will see greater improvement by the holiday selling season,” he stated.
TJX overall performance in Q2 FY27
In the second quarter, the company’s pre-tax profit margin rose to 13.3%, up from 11.4% a year earlier. Gross profit margin also improved, reaching 33.4% compared to 30.7% in the same period last year.
Net income for the quarter was $1.5bn, translating to diluted earnings per share of $1.36, a 24% increase from $1.10 in the previous year’s second quarter.
TJX reported receiving $331m in tariff refunds, resulting in a net benefit of $219m.
The refunds improved the reported gross profit margin to 33.4%, while the adjusted gross profit margin, excluding this benefit, was 31.4%, up 0.7 percentage points from last year.
Excluding a $.14 net benefit from tariff refunds, second quarter Fiscal 2027 adjusted diluted EPS were $1.22, up 11% versus the prior year.
The company’s Selling, General, and Administrative expenses (SG&A) as a percentage of sales increased slightly to 20.3%, or 19.7% when adjusted for tariff compensation expenses, as higher store wages and payroll costs contributed to the increase.
Inventory per store was up 2% year-over-year, which TJX stated positions it to capitalise on strong market availability heading into the autumn.
TJX first-half performance
For the first half of fiscal 2027, TJX reported net sales of $29.5bn, marking a 7% increase compared to the same period last year. Consolidated comparable sales rose 5% over the six months.
Net income reached $2.9bn, with diluted earnings per share climbing to $2.55, a 26% rise from $2.02 in the prior year.
Q3 and FY outlook, store growth plans
Looking ahead, management anticipates receiving additional tariff refunds in the third quarter (Q3), but said the amount and timing remain uncertain due to potential legal and regulatory developments.
TJX forecasts Q3 comparable sales growth of 2% to 3% and diluted earnings per share between $1.36 and $1.38, or $1.30 to $1.32 after accounting for expected tariff refunds.
For the full fiscal year, the company raised its guidance, projecting 3% to 4% comparable sales growth and diluted earnings per share between $5.31 and $5.36.
Adjusted full-year earnings per share are expected to range from $5.15 to $5.20.
Ernie Herrman said: “With our strong second quarter profit results, we are raising our pretax profit margin and earnings per share outlook for the full year. Looking ahead, the third quarter is off to a strong start, and we are seeing improvement at our Marmaxx division to start the quarter. Availability of branded, quality merchandise continues to be outstanding, and we have many initiatives in place to drive sales and traffic in the upcoming fall and holiday shopping seasons.”
TJX plans to accelerate store openings to a 4% annual growth rate starting in fiscal 2028 and raised its global store target by 500 locations to 7,500 stores.
