TJX Companies, Inc.
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ITEM 1. Business
BUSINESS OVERVIEW
The TJX Companies, Inc. (together with its subsidiaries, “TJX,” the “Company,” “we,” or “our”) is the leading off-price apparel and home fashions retailer in the United States and worldwide. We have over 5,200 stores and six branded e-commerce sites that offer a rapidly changing assortment of quality, fashionable, brand name and designer merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices on comparable merchandise, every day.
Our mission is to deliver great value to our customers every day. In our stores and online, we offer consumers our value proposition of brand, fashion, price and quality. Our opportunistic buying strategies and flexible business model differentiate us from traditional retailers. We offer a treasure hunt shopping experience and a rapid turn of inventories relative to traditional retailers. Our goal is to create a sense of excitement and urgency for our customers and encourage frequent customer visits. We acquire merchandise in a variety of ways to support that goal. We reach a broad range of customers across income levels with our value proposition on a wide range of items. Our strategies and operations are synergistic across our retail chains. As a result, we are able to leverage our expertise throughout our business, sharing information, best practices, initiatives and new ideas, and to develop talent across our company. Further, we can leverage the substantial buying power of our businesses with our global vendor relationships.
In this report, fiscal 2026 means the 52-week fiscal year ended January 31, 2026; fiscal 2025 means the 52-week fiscal year ended February 1, 2025 and fiscal 2024 means the 53-week fiscal year ended February 3, 2024. Fiscal 2027 means the 52-week fiscal year ending January 30, 2027. Unless otherwise indicated, all store information in this Item 1 is as of January 31, 2026, and references to store square footage are to gross square feet.
Our Businesses
We operate our business in four segments: Marmaxx and HomeGoods, both in the U.S., TJX Canada and TJX International, including Europe and Australia. In addition to our four segments, we operate the Sierra business. The results of Sierra are included with the Marmaxx segment.
MARMAXX
Our TJ Maxx and Marshalls chains in the United States (“Marmaxx”) are collectively the largest off-price retailer in the United States with a total of 2,603 stores. We founded TJ Maxx in 1976 and acquired Marshalls in 1995. Both chains sell family apparel (including footwear), accessories (including beauty and jewelry), home fashions (including home basics, decorative accessories and giftware), and other merchandise. We primarily differentiate TJ Maxx and Marshalls through different product assortment, including an expanded assortment of jewelry and accessories and a high-end designer department called The Runway at TJ Maxx and a full line of footwear and a broader men’s offering at Marshalls, as well as varying in-store initiatives. This differentiated shopping experience at TJ Maxx and Marshalls encourages our customers to shop both chains. Marmaxx currently operates two e-commerce sites, tjmaxx.com, launched in 2013, and marshalls.com, launched in 2019.
Sierra, acquired in 2012 and rebranded from Sierra Trading Post in 2018, is a leading off-price retailer of brand name active and outdoor apparel, footwear, and gear (including sporting goods, snow and water sport, camping, fishing) for the whole family, as well as home fashions and pet. Sierra operates 145 retail stores in the U.S. and sierra.com.
HOMEGOODS
Our HomeGoods segment operates HomeGoods and Homesense chains in the U.S. HomeGoods, introduced in 1992, is the leading off-price retailer of home fashions in the U.S. Through its 963 stores, HomeGoods offers an eclectic assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware, as well as expanded pet and gourmet food departments. In 2017, we launched our Homesense chain in the U.S. Our 79 Homesense stores complement HomeGoods, offering a differentiated mix and expanded departments, such as large furniture, ceiling lighting, rugs, and an entertaining marketplace.
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TJX CANADA
Our TJX Canada segment operates the Winners, HomeSense and Marshalls chains in Canada. Winners, acquired by TJX in 1990, operates 316 stores and is the leading off-price family apparel and home fashions retailer in Canada. HomeSense introduced the off-price home fashions concept to Canada in 2001. This chain operates 162 stores and offers an array of home decor, furniture, and seasonal home merchandise. Marshalls, launched in Canada in 2011, operates 111 stores and offers off-price family apparel, footwear, and home fashions.
TJX INTERNATIONAL
Our TJX International segment operates the TK Maxx and Homesense chains in Europe and the TK Maxx chain in Australia. Launched in 1994, TK Maxx introduced off-price retail to Europe and remains Europe’s largest major brick-and-mortar off-price retailer of apparel and home fashions. With 673 stores in Europe, TK Maxx operates in the U.K., Ireland, Germany, Poland, Austria, the Netherlands, and, starting in March 2026, Spain. Through its stores and its e-commerce sites, tkmaxx.com, launched in 2009 and tkmaxx.de and tkmaxx.at, both launched in 2023, TK Maxx offers a merchandise mix similar to TJ Maxx. We brought the off-price home fashions concept to Europe, opening Homesense in the U.K. in 2008 and in Ireland in 2017. Its 74 stores offer a merchandise mix of home fashions similar to that of HomeGoods in the U.S. and HomeSense in Canada. We acquired Trade Secret in Australia in 2015 and re-branded it under the TK Maxx name during 2017. The merchandise offering at TK Maxx in Australia's 88 stores is comparable to TJ Maxx.
Flexible Business Model
Our flexible business model, including our opportunistic buying, inventory management, logistics and flexible store layouts, is designed to deliver a compelling value proposition of fashionable, quality, brand name and designer merchandise to our customers at excellent values every day. Our buying and inventory management strategies give us flexibility to adjust our merchandise assortments more frequently than traditional retailers, and the design and operation of our stores and distribution centers support this flexibility. Our buyers have more visibility into consumer, fashion and market trends and pricing when we buy closer to need, which can help us buy better and reduce our markdown exposure. Our selling floor space is flexible, without walls between departments and largely free of permanent fixtures, so we can easily expand and contract departments to accommodate the merchandise we purchase. Our logistics and distribution operations are designed to support our global buying strategies and to facilitate quick, efficient and differentiated delivery of merchandise to our stores, with a goal of delivering the right merchandise to the right stores at the right time.
Opportunistic Buying
As an off-price retailer, our buying practices, which we refer to as opportunistic buying, differentiate us from traditional retailers. Our overall global buying strategy is to acquire merchandise on an ongoing basis that will enable us to offer a desirable and rapidly changing mix of branded, designer and other quality merchandise in our stores at prices below regular prices for comparable merchandise at full-price retailers, including department, specialty, and major online retailers. We seek out and select merchandise from the broad range of opportunities in the market to achieve this end. Our buying organization, which numbers over 1,400 employees (who we refer to as Associates), has buying offices across the globe and executes this opportunistic buying strategy, buying merchandise from more than 100 countries in a variety of ways, depending on market conditions and other factors.
We take advantage of opportunities to acquire merchandise at substantial discounts that regularly arise from the production and flow of inventory in the apparel and home fashions marketplace. These opportunities include, among others, closeouts from brands, manufacturers and other retailers; special production direct from brands and factories; order cancellations and manufacturer overruns. Our global buying strategies are intentionally flexible to allow us to react to frequently changing opportunities and trends in the market and to adjust how and what we source as well as when we source it. Our goal is to operate with lean inventory levels compared to conventional retailers to give us the flexibility to seek out and to take advantage of these opportunities as they arise, close to the time the merchandise is needed in our stores and online and when we have more visibility into fashion trends and price. In contrast to traditional retailers, which tend to order most of their goods far in advance of the time the product appears on the selling floor, our merchants generally remain in the marketplace for goods throughout the year, frequently looking for opportunities to buy merchandise. We buy much of our merchandise for the current or immediately upcoming selling season. We also buy some merchandise that is available in the market with the intention of storing it for sale, typically in future selling seasons. We generally make these purchases, referred to as packaway, in response to opportunities to buy merchandise that we believe has the right combination of brand, fashion, price and quality to supplement the product we expect to be available to purchase later for those future seasons.
We also acquire some merchandise that we offer under in-house brands or brands that are licensed to us. We develop some of this merchandise ourselves, which allows us to supplement the depth of, or fill gaps in, our expected merchandise assortment. Collectively, these represent a small percentage of our product/merchandise mix.
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Manufacturers, retailers and other vendors made up our expansive and changing universe of approximately 21,000 vendors across the globe, including thousands of new vendors in fiscal 2026, which provides us substantial and diversified access to merchandise. We have not experienced difficulty in obtaining sufficient quality merchandise for our business in either favorable or difficult retail environments and expect this will continue should we meet or exceed our plans for growth. We believe a number of factors provide us excellent access on an ongoing basis to leading branded merchandise and make us an attractive channel for many vendors in the market. We are typically willing to purchase less-than-full assortments of items, styles and sizes as well as quantities ranging from small to very large; we are able to disperse merchandise across our geographically diverse network of stores and to target specific markets; we pay promptly according to our payment terms; our practice is to not ask for typical retail concessions (such as advertising, promotional and markdown allowances), delivery concessions (such as drop shipments to stores or delayed deliveries) or performance-based return privileges; and we have an excellent credit rating.
Inventory Management
We offer our customers a rapidly changing selection of merchandise to create a treasure hunt experience in our stores and to encourage frequent customer visits. To achieve this, we seek to turn the inventory in our stores rapidly, regularly offering fresh selections of apparel and home fashions at excellent values. Our specialized inventory planning, purchasing, monitoring and markdown systems, coupled with distribution center storage, processing, handling and shipping systems, enable us to tailor the merchandise in our stores to local preferences and demographics, achieve rapid in-store inventory turnover on a vast array of products and generally sell through most merchandise within the period we planned. We make pricing, markdown and store inventory decisions centrally, using information provided by specialized computer systems designed to move inventory through our stores in a timely and disciplined manner. We invest in our supply chain with the goal of continuing to operate with low inventory levels, to ship more efficiently and quickly, and to more precisely and effectively allocate merchandise to each store.
Pricing
Our mission is to deliver great value to our customers every day. We do this by offering quality, fashionable, brand name and designer merchandise in our stores with retail prices that are generally 20% to 60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices on comparable merchandise, every day. Our practice is to not engage in promotional pricing activity such as sales or coupons. We have generally been able to react to price fluctuations in the wholesale market to maintain our pricing gap relative to prices offered by traditional retailers as well as our merchandise margins through various economic cycles.
Low Cost Operations
We operate with a low cost structure compared to many traditional retailers with a prudent focus on expenses throughout our business. Our advertising is generally focused on promoting our retail banners rather than individual products, which contributes to our advertising budget (as a percentage of sales) remaining low compared to many traditional retailers. We design our stores to provide a pleasant, convenient shopping environment without spending heavily on store fixtures. Additionally, our distribution network is designed to run cost effectively.
Customer Service/Shopping Experience
We strategically renovate and upgrade our stores across our retail banners to enhance our customers’ shopping experience and help drive sales. We train our store Associates to provide friendly and helpful customer service and seek to staff our stores to deliver a positive shopping experience. We believe we offer return policies that are customer friendly. We accept a variety of payment methods including cash, credit cards and debit cards. We also offer TJX-branded credit cards in the U.S. through a bank, but do not own the customer receivables.
Distribution
We operate distribution centers encompassing approximately 31 million square feet in six countries. These centers are generally large, and built to suit our specific, off-price business model, with a combination of automated systems and manual processes to manage the variety of merchandise we acquire. We ship substantially all of our merchandise to our stores through a network of distribution centers, fulfillment centers and warehouses as well as shipping centers, which, in many cases, are operated by third parties.
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Store Growth
Expansion of our business through the addition of new stores continues to be an important part of our global growth strategy. The following table provides store growth information for our divisions for the two most recently completed fiscal years, as well as our estimates of the long-term store growth potential of these divisions in their current geographies:
| Approximate Average Store Size (square feet) | Number of Stores at Year-End | Estimated Store Potential | |||||||||||||||
| Fiscal 2025 | Fiscal 2026 | ||||||||||||||||
| Marmaxx: | |||||||||||||||||
| TJ Maxx | 27,000 | 1,333 | 1,348 | ||||||||||||||
| Marshalls | 28,000 | 1,230 | 1,255 | ||||||||||||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The Thirteen Weeks (first quarter) Ended May 2, 2026
Compared to
The Thirteen Weeks (first quarter) Ended May 3, 2025
OVERVIEW
We are the leading off-price apparel and home fashions retailer in the U.S. and worldwide. Our mission is to deliver great value to our customers every day. We do this by selling a rapidly changing assortment of apparel, home fashions and other merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty and major online retailers) regular prices on comparable merchandise, every day through our stores and six e-commerce sites. We operate over 5,200 stores through our four segments: in the U.S., Marmaxx (which operates TJ Maxx, Marshalls, tjmaxx.com and marshalls.com) and HomeGoods (which operates HomeGoods and Homesense); TJX Canada (which operates Winners, HomeSense and Marshalls in Canada); and TJX International (which operates TK Maxx, Homesense, tkmaxx.com, tkmaxx.de, and tkmaxx.at in Europe, and TK Maxx in Australia). In addition to our four segments, Sierra operates retail stores and sierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
RESULTS OF OPERATIONS
As an overview of our financial performance, results for the quarter ended May 2, 2026 include the following:
–Net sales increased 9% to $14.3 billion for the first quarter of fiscal 2027 versus last year’s first quarter sales of $13.1 billion. As of May 2, 2026, both the number of stores in operation and the selling square footage increased approximately 3% compared to the end of the first quarter of fiscal 2026.
–Consolidated comp sales increased 6% for the first quarter of fiscal 2027. See Net Sales below for our definition of comp sales.
–Diluted earnings per share for the first quarter of fiscal 2027 were $1.19 versus $0.92 in the first quarter of fiscal 2026.
–Pre-tax profit margin (the ratio of pre-tax income to net sales) for the first quarter of fiscal 2027 was 12.0%, a 1.7 percentage point increase compared with 10.3% in the first quarter of fiscal 2026.
–Our cost of sales, including buying and occupancy costs, ratio for the first quarter of fiscal 2027 was 68.7%, a 1.8 percentage point decrease compared with 70.5% in the first quarter of fiscal 2026.
–Our selling, general and administrative (“SG&A”) expense ratio for the first quarter of fiscal 2027 was 19.5%, a 0.1 percentage point increase compared with 19.4% in the first quarter of fiscal 2026.
–Our consolidated average per store inventories, including inventory on hand at our distribution centers (which excludes inventory in transit) and excluding our e-commerce sites, were up 7% at the end of the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026.
–During the first quarter of fiscal 2027, we returned $1.1 billion to our shareholders through share repurchases and dividends.
Operating Results as a Percentage of Net Sales
The following table sets forth our consolidated operating results as a percentage of net sales:
| Thirteen Weeks Ended | ||||||||||||||||||
| May 2, 2026 | May 3, 2025 | |||||||||||||||||
| Net sales | 100.0 | % | 100.0 | % | ||||||||||||||
| Cost of sales, including buying and occupancy costs | 68.7 | 70.5 | ||||||||||||||||
| Selling, general and administrative expenses | 19.5 | 19.4 | ||||||||||||||||
| Interest (income) expense, net | (0.2) | (0.2) | ||||||||||||||||
Income before income taxes* | 12.0 | % | 10.3 | % | ||||||||||||||
*Figures may not foot due to rounding.
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Recent Events and Trends
Global Economic Conditions and Tariffs
We continue to closely monitor changes in international trade relations, economic and monetary policies, and legislation and regulations including those related to tariffs on imports from China and other countries. While we have been, and believe we can continue to be, successful in mitigating tariff pressures, tariffs have led to significant volatility in the global economy. We are continuing to implement and consider additional measures that seek to mitigate the impact of tariffs.
In February 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). We estimate we have paid approximately $490 million in IEEPA related tariffs. U.S. Customs and Border Patrol (“CBP”) has established a phased administrative process for submitting refund claims for certain IEEPA tariffs. However, the amount, timing and likelihood of any refund recovery remain uncertain. The amount of any refunds, if received, may not equal the full amount of IEEPA related tariffs paid, and any refunds remain subject to further legal, regulatory or administrative developments.
As of May 2, 2026, we have not recorded a receivable for any potential refunds and continue to monitor ongoing legal, administrative and regulatory processes. We will recognize a receivable and associated income if the right to receive such amounts becomes realized or realizable in accordance with ASC 450, Contingencies. Subsequent to the end of the first quarter of fiscal 2027, we filed for refunds that we believe are eligible under phase 1 of the CBP process and as of May 29, 2026 have received an immaterial amount in refunds.
The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business, including potential IEEPA tariff refunds, continues to be uncertain. Our buying organization’s ability to execute our merchandise sourcing model to offset the effects of the tariffs is a key factor. However, the overall impact depends on a range of factors, including trade negotiations between the U.S. and other countries, responses of other countries, judicial review, exceptions that could be granted and cost of alternative sources of merchandise.
Uncertainty remains regarding the continued impact on our direct imports, indirect imports, vendor and competitor pricing, consumer demand, tariff pass-throughs and retaliatory tariffs. We will continue to closely monitor developments related to tariffs and evaluate their potential impact on our business and financial condition.
Net Sales
Net sales for the quarter ended May 2, 2026 totaled $14.3 billion, a 9% increase versus first quarter fiscal 2026 net sales of $13.1 billion. This increase reflects a 6% increase in comp sales, a 2% increase from non-comp sales and a 1% positive impact from foreign currency. Net sales from our e-commerce sites combined amounted to approximately 2% of total sales for each of the first quarters of fiscal 2027 and fiscal 2026.
Comp sales increased 6% and 3% for the first quarter of fiscal 2027 and fiscal 2026, respectively. Both apparel comp sales growth (as defined below) and home comp sales growth (as defined below) performed in line with comp sales growth for the first quarter of fiscal 2027. Comp sales for the first quarter of fiscal 2027 were driven by a higher average basket and an increase in customer transactions.
As of May 2, 2026, both our store count and selling square footage increased approximately 3% compared to the end of the first quarter last year.
Definition of Comparable Sales
We define comparable sales, or comp sales, to be sales of stores and e-commerce sites that have been in operation for all or a portion of two consecutive fiscal years, or, in other words, stores or e-commerce sites that are starting their third fiscal year of operation. In any given fiscal year, we calculate comp sales on a 52-week basis by comparing the current and prior year weekly periods that are most closely aligned. Relocated stores and stores that have changed in size are generally classified in the same way as the original store, and we believe that the impact of these stores on the consolidated comp sales percentage is immaterial.
Sales excluded from comp sales (“non-comp sales”) consist of sales from:
–New stores or e-commerce sites - stores or sites that have not yet met the comp sales criteria, which represents a substantial majority of non-comp sales
–Stores or e-commerce sites that are closed permanently or for an extended period of time
We determine which stores and e-commerce sites are included in the comp sales calculation at the beginning of a fiscal year, and the classification remains constant throughout that year unless a store or e-commerce site is closed permanently or for an extended period during that fiscal year.
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Comp sales of our foreign segments are calculated on a constant currency basis. We define constant currency basis as translating the current year’s results using the prior year’s exchange rates. This removes the effect of changes in currency exchange rates, which we believe is a more appropriate measure of performance.
Comp sales may be referred to as “same store” sales by other retail companies. The method for calculating comp sales varies across the retail industry; therefore, our measure of comp sales may not be comparable to that of other retail companies. Comparable sales for a category such as home or apparel include sales from merchandise within such category combined across all divisions that fall within the Company’s definition of comparable sales for such period.
We define customer transactions to be the number of transactions in stores or online included in the comp sales calculation. We define average ticket to be the average retail price of the units sold. We define average basket to be the average dollar value of transactions.
Impact of Foreign Currency Exchange Rates
Our operating results are affected by foreign currency exchange rates as a result of changes in the value of the U.S. dollar or a division’s local currency in relation to other currencies. We specifically refer to “foreign currency” as the impact of translational foreign currency exchange and mark-to-market of inventory derivatives, as described in detail below. This does not include the impact foreign currency exchange rates can have on various transactions that are denominated in a currency other than an operating division's local currency, which is referred to as “transactional foreign exchange,” and also described below.
Translation Foreign Exchange
In our Consolidated Financial Statements, we translate the operations of TJX Canada and TJX International from local currencies into U.S. dollars using currency rates in effect at different points in time. Significant changes in foreign exchange rates between comparable prior periods can result in meaningful variations in assets, liabilities, net sales, net income and earnings per share as well as the net sales and operating results of these segments. Currency translation generally does not affect operating margins, or affects them only slightly, as sales and expenses of the foreign operations are translated at approximately the same rates within a given period.
Mark-to-Market Inventory Derivatives
We routinely enter into inventory-related hedging instruments to mitigate the impact on earnings of changes in foreign currency exchange rates on merchandise purchases denominated in currencies other than the local currencies of our divisions, principally TJX Canada and TJX International. As we have not elected hedge accounting for these instruments, as defined by U.S. generally accepted accounting principles (“GAAP”), we record a mark-to-market gain or loss on the derivative instruments in our results of operations at the end of each reporting period. In subsequent periods, the income statement impact of the mark-to-market adjustment is effectively offset when the inventory being hedged is paid for. While these effects occur every reporting period, they are of much greater magnitude when there are sudden and significant changes in currency exchange rates during a short period of time. The mark-to-market adjustment on these derivatives does not affect net sales, but it does affect the cost of sales, operating margins and earnings we report.
Transactional Foreign Exchange
When discussing the impact on our results of the effect of foreign currency exchange rates on certain transactions, we refer to it as “transactional foreign exchange”. This primarily includes the impact that foreign currency exchange rates may have on the year-over-year comparison of merchandise margin as well as “foreign currency gains and losses” on transactions that are denominated in a currency other than the operating division's local currency. These two items can impact segment margin comparison of our foreign divisions and we have highlighted them when they are meaningful to understanding operating trends.
Cost of Sales, Including Buying and Occupancy Costs
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 68.7% for the first quarter of fiscal 2027, a decrease of 1.8 percentage points compared to 70.5% for the first quarter of fiscal 2026.
The decrease in the cost of sales ratio, including buying and occupancy costs, for the first quarter of fiscal 2027 was driven by favorable merchandise margin due to higher markon, the favorable year-over-year impact related to the mark-to-market adjustments on inventory and fuel hedges and expense leverage on higher comp sales.
Selling, General and Administrative Expenses
SG&A expenses, as a percentage of net sales, was 19.5% for the first quarter of fiscal 2027, an increase of 0.1 percentage points compared to 19.4% for the first quarter of fiscal 2026.
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Interest (Income) Expense, net
The components of interest (income) expense, net are summarized below:
| Thirteen Weeks Ended | ||||||||||||||||||
| In millions | May 2, 2026 | May 3, 2025 | ||||||||||||||||
| Interest expense | $ | 20 | $ | 20 | ||||||||||||||
| Capitalized interest | (2) | (2) | ||||||||||||||||
| Interest (income) | (53) | (48) | ||||||||||||||||
| Interest (income) expense, net | $ | (35) | $ | (30) | ||||||||||||||
Interest (income) expense, net increased for the first quarter of fiscal 2027 compared to the same period in fiscal 2026, primarily due to an increase in interest income driven by a higher average cash balance, partially offset by a decrease in prevailing rates.
Provision for Income Taxes
On July 4, 2025, the One Big Beautiful Bill Act was signed into law, making permanent certain expiring provisions of the Tax Cuts and Jobs Act, including 100% accelerated depreciation deductions on qualified property and immediate expensing of domestic research and development costs, as well as modifying some of the international tax rules. These changes have not had a material impact on our income tax provision for the first quarter of fiscal 2027, and we do not expect them to have a material impact on our income tax provision for the fiscal year.
A number of countries have enacted legislation to implement the Organization for Economic Cooperation and Development’s 15% global minimum tax regime (Pillar Two) with effect from January 1, 2024. A comprehensive Side-by-Side Package was released in January 2026, introducing additional safe harbors and options for companies headquartered in jurisdictions with a qualified Side-by-Side regime. Member countries must enact local legislation or update existing regulations to adopt and incorporate the Pillar Two Side-by-Side Package. We continue to evaluate the impacts of proposed and enacted legislation for the jurisdictions in which we operate.
The effective income tax rate was 22.6% for the first quarter of fiscal 2027 and 23.0% for the first quarter of fiscal 2026. The decrease in the effective tax rate for the first quarter of fiscal 2027 was primarily due to the increase in an excess tax benefit from share-based compensation and a benefit from the acquisition of federal tax credits, partially offset by a reduction of benefits from audit settlements.
Net Income and Diluted Earnings Per Share
Net income was $1.3 billion, or $1.19 per diluted share, and $1 billion, or $0.92 per diluted share, for the first quarter of fiscal 2027 and fiscal 2026, respectively. Foreign currency had a $0.01 positive impact on diluted earnings per share for the first quarter of fiscal 2027 and a $0.02 negative impact on diluted earnings per share for the first quarter of fiscal 2026.
Segment Information
We operate four segments. In the United States, our Marmaxx segment operates TJ Maxx, Marshalls, tjmaxx.com and marshalls.com and our HomeGoods segment operates HomeGoods and Homesense. Our TJX Canada segment operates Winners, HomeSense and Marshalls in Canada, and our TJX International segment operates TK Maxx, Homesense, tkmaxx.com, tkmaxx.de, and tkmaxx.at in Europe and TK Maxx in Australia. In addition to our four segments, Sierra operates retail stores and sierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
We evaluate the performance of our segments based on “segment profit or loss,” which we define as pre-tax income or loss before general corporate expense and interest (income) expense, net, and certain separately disclosed unusual or infrequent items. “Segment profit or loss,” as we define the term, may not be comparable to similarly titled measures used by other companies. The terms “segment margin” or “segment profit margin” are used to describe segment profit or loss as a percentage of net sales. These measures of performance should not be considered an alternative to net income or cash flows from operating activities, as an indicator of our performance or as a measure of liquidity.
Presented below is selected financial information related to our segments.
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U.S. SEGMENTS
Marmaxx
| Thirteen Weeks Ended | ||||||||||||||||||
| U.S. dollars in millions | May 2, 2026 | May 3, 2025 | ||||||||||||||||
| Net sales | $ | 8,650 | $ | 8,052 | ||||||||||||||
| Segment profit | $ | 1,269 | $ | 1,107 | ||||||||||||||
| Segment profit margin | 14.7 | % | 13.7 | % | ||||||||||||||
Comp sales | 6 | % | 2 | % | ||||||||||||||
| Stores in operation at end of period: | ||||||||||||||||||
| TJ Maxx | 1,354 | 1,338 | ||||||||||||||||
| Marshalls | 1,265 | 1,234 | ||||||||||||||||
| Sierra | 153 | 123 | ||||||||||||||||
| Total | 2,772 | 2,695 | ||||||||||||||||
| Selling square footage at end of period (in millions): | ||||||||||||||||||
| TJ Maxx | 30 | 30 | ||||||||||||||||
| Marshalls | 28 | 27 | ||||||||||||||||
| Sierra | 2 | 2 | ||||||||||||||||
| Total | 60 | 59 | ||||||||||||||||
Net Sales
Net sales for Marmaxx were $8.7 billion for the first quarter of fiscal 2027, an increase of 7% compared to $8.1 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a 6% increase from comp sales and a 1% increase from non-comp sales.
For the first quarter of fiscal 2027, the increase in comp sales was driven by a higher average basket and an increase in customer transactions. Marmaxx apparel comp sales growth outperformed home comp sales growth for the first quarter of fiscal 2027. Geographically, each region performed in line with comp sales growth for the first quarter of fiscal 2027.
Segment Profit Margin
Segment profit margin increased to 14.7% for the first quarter of fiscal 2027 compared to 13.7% for the same period last year. The increase in segment profit margin for the first quarter of fiscal 2027 was primarily driven by favorable merchandise margin due to higher markon and expense leverage on higher comp sales.
Our Marmaxx e-commerce sites, tjmaxx.com and marshalls.com, together with sierra.com, represented approximately 3% of Marmaxx’s net sales for the first quarter of fiscal 2027 and fiscal 2026, and did not have a significant impact on year-over-year segment margin comparisons.
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HomeGoods
| Thirteen Weeks Ended | ||||||||||||||||||
| U.S. dollars in millions | May 2, 2026 | May 3, 2025 | ||||||||||||||||
| Net sales | $ | 2,506 | $ | 2,254 | ||||||||||||||
| Segment profit | $ | 323 | $ | 230 | ||||||||||||||
| Segment profit margin | 12.9 | % | 10.2 | % | ||||||||||||||
Comp sales | 9 | % | 4 | % | ||||||||||||||
| Stores in operation at end of period: | ||||||||||||||||||
| HomeGoods | 969 | 950 | ||||||||||||||||
| Homesense | 84 | 75 | ||||||||||||||||
| Total | 1,053 | 1,025 | ||||||||||||||||
| Selling square footage at end of period (in millions): | ||||||||||||||||||
| HomeGoods | 18 | 17 | ||||||||||||||||
| Homesense | 2 | 2 | ||||||||||||||||
| Total | 20 | 19 | ||||||||||||||||
Net Sales
Net sales for HomeGoods were $2.5 billion for the first quarter of fiscal 2027, an increase of 11%, compared to $2.3 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a 9% increase from comp sales and a 2% increase from non-comp sales.
The increase in comp sales was driven by a higher average basket and an increase in customer transactions for the first quarter of fiscal 2027. Geographically, all regions saw strong comp sales growth with comp sales growth being strongest in the Midwest for the first quarter of fiscal 2027.
Segment Profit Margin
Segment profit margin increased to 12.9% for the first quarter of fiscal 2027 compared to 10.2% for the same period last year. This increase in segment profit margin for the first quarter of fiscal 2027 was driven by favorable merchandise margin, expense leverage on higher comp sales and lower supply chain and store costs. Merchandise margin reflects lower freight costs and favorable markon, partially offset by higher markdowns.
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FOREIGN SEGMENTS
TJX Canada
| Thirteen Weeks Ended | ||||||||||||||||||
| U.S. dollars in millions | May 2, 2026 | May 3, 2025 | ||||||||||||||||
| Net sales | $ | 1,285 | $ | 1,144 | ||||||||||||||
| Segment profit | $ | 150 | $ | 122 | ||||||||||||||
| Segment profit margin | 11.7 | % | 10.7 | % | ||||||||||||||
Comp sales | 7 | % | 5 | % | ||||||||||||||
| Stores in operation at end of period: | ||||||||||||||||||
| Winners | 319 | 310 | ||||||||||||||||
| HomeSense | 162 | 161 | ||||||||||||||||
| Marshalls | 112 | 110 | ||||||||||||||||
| Total | 593 | 581 | ||||||||||||||||
| Selling square footage at end of period (in millions): | ||||||||||||||||||
| Winners | 7 | 7 | ||||||||||||||||
| HomeSense | 3 | 3 | ||||||||||||||||
| Marshalls | 2 | 2 | ||||||||||||||||
| Total | 12 | 12 | ||||||||||||||||
Net Sales
Net sales for TJX Canada were $1.3 billion for the first quarter of fiscal 2027, an increase of 12%, compared to $1.1 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a 7% increase in comp sales, a positive foreign currency impact of 3% and a 2% increase in non-comp sales.
The increase in comp sales for the first quarter of fiscal 2027 was driven by an increase in customer transactions and a higher average basket.
Segment Profit Margin
Segment profit margin increased to 11.7% for the first quarter of fiscal 2027 compared to 10.7% for the same period last year. This increase for the first quarter of fiscal 2027 was primarily driven by expense leverage on higher comp sales and the year-over-year benefit from unfavorable transactional foreign exchange last year.
28
TJX International
| Thirteen Weeks Ended | ||||||||||||||||||
| U.S. dollars in millions | May 2, 2026 | May 3, 2025 | ||||||||||||||||
| Net sales | $ | 1,882 | $ | 1,661 | ||||||||||||||
| Segment profit | $ | 87 | $ | 72 | ||||||||||||||
| Segment profit margin | 4.6 | % | 4.3 | % | ||||||||||||||
Comp sales | 4 | % | 5 | % | ||||||||||||||
| Stores in operation at end of period: | ||||||||||||||||||
| TK Maxx (Europe) | 679 | 662 | ||||||||||||||||
| Homesense (Europe) | 74 | 74 | ||||||||||||||||
| TK Maxx (Australia) | 91 | 84 | ||||||||||||||||
| Total | 844 | 820 | ||||||||||||||||
| Selling square footage at end of period (in millions): | ||||||||||||||||||
| TK Maxx (Europe) | 13 | 13 | ||||||||||||||||
| Homesense (Europe) | 1 | 1 | ||||||||||||||||
| TK Maxx (Australia) | 2 | 1 | ||||||||||||||||
| Total | 16 | 15 | ||||||||||||||||
Net Sales
Net sales for TJX International were $1.9 billion for the first quarter of fiscal 2027, an increase of 13%, compared to $1.7 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a positive foreign currency impact of 6%, a 4% increase in comp sales and a 3% increase in non-comp sales.
The increase in comp sales for the first quarter of fiscal 2027 was driven by an increase in customer transactions and a higher average basket.
E-commerce sales represented approximately 3% of TJX International’s net sales for the first quarter of fiscal 2027 and approximately 4% for the first quarter of fiscal 2026.
Segment Profit Margin
Segment profit margin increased to 4.6% for the first quarter of fiscal 2027 compared to 4.3% for the same period last year. This increase for the first quarter of fiscal 2027 was primarily due to favorable merchandise margin, partially offset by incremental store wage. Within merchandise margin, higher markon, driven by the positive impact of transactional foreign exchange on the cost of merchandise, was partially offset by higher markdowns.
GENERAL CORPORATE EXPENSE
| Thirteen Weeks Ended | ||||||||||||||||
| In millions | May 2, 2026 | May 3, 2025 | ||||||||||||||
| General corporate expense | $ | 143 | $ | 215 | ||||||||||||
General corporate expense for segment reporting purposes represents those costs not specifically related to the operations of our segments. General corporate expenses are primarily included in SG&A expenses. The mark-to-market adjustment of our fuel and inventory hedges is included in cost of sales, including buying and occupancy costs.
The decrease in general corporate expense for the first quarter of fiscal 2027 was primarily driven by the favorable year-over-year impact related to the mark-to-market adjustments on inventory and fuel hedge, partially offset by higher incentive compensation costs.
29
ANALYSIS OF FINANCIAL CONDITION
Liquidity and Capital Resources
Our liquidity requirements have traditionally been funded through cash generated from operations, supplemented, as needed, by short-term bank borrowings and the issuance of commercial paper. As of May 2, 2026, there were no short-term bank borrowings or commercial paper outstanding. We believe our existing cash and cash equivalents, internally generated funds and our credit facilities, under which facilities we have $1.5 billion available as of the period ended May 2, 2026, are adequate to meet our operating needs for the foreseeable future. Our 2.25% ten-year Notes due September 2026 will mature during our third quarter of fiscal 2027 and are included within our current maturities of long-term debt. For more information, see Note I—Long-Term Debt and Credit Lines of Notes to Consolidated Financial Statements.
As of May 2, 2026, we held $5.6 billion in cash. Our foreign subsidiaries held $1.3 billion in cash, including approximately $730 million, primarily in Europe, which represents working capital and is considered indefinitely reinvested. Cash generated from earnings in certain foreign subsidiaries in fiscal 2027 and onward will not be considered indefinitely reinvested. We have provided for and recorded a deferred tax liability for all applicable taxes on undistributed earnings of our foreign subsidiaries that are not indefinitely reinvested through May 2, 2026. If we repatriate cash from such subsidiaries, we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid.
We monitor debt financing markets on an ongoing basis and from time to time may incur additional long-term indebtedness depending on prevailing market conditions, liquidity requirements, existing economic conditions and other factors. Periodically, we have used, and in the future we may again use, operating cash flow and cash on hand to repay portions of our indebtedness, depending on prevailing market conditions, liquidity requirements, existing economic conditions, contractual restrictions and other factors. As such, we may, from time to time, seek to retire, redeem, prepay or purchase our outstanding debt through redemptions, cash purchases, prepayments, refinancings and/or exchanges, in open market purchases, privately negotiated transactions, by tender offer or otherwise.
Operating Activities
Operating activities resulted in net cash inflows of $1.1 billion for the three months ended May 2, 2026 and $394 million for the three months ended May 3, 2025.
Operating cash flows increased $725 million compared to fiscal 2026 primarily due to a decrease of prepaid expenses and other current assets related to the receipt of the credit card interchange fees settlement and an increase in net income.
Investing Activities
Investing activities resulted in net cash outflows of $673 million for the three months ended May 2, 2026 and $503 million for the three months ended May 3, 2025. The cash outflows for both periods were driven by capital expenditures.
Capital expenditures in the first three months of fiscal 2027 primarily reflected store improvements and renovations, investments in our new stores, as well as investments in our distribution centers and offices, including information technology. We anticipate that capital spending for the full fiscal year 2027 will be approximately $2.2 billion to $2.3 billion. We plan to fund these expenditures with our existing cash balances and through internally generated funds.
Financing Activities
Financing activities resulted in net cash outflows of $1.1 billion for the first three months of fiscal 2027 and $1 billion for the first three months of fiscal 2026. The cash outflows for both periods were primarily driven by equity repurchases and dividend payments.
Equity
Under our stock repurchase programs, we paid $604 million to repurchase and retire 3.8 million shares of our stock in the first three months of fiscal 2027 and we paid $613 million to repurchase and retire 5.1 million shares of our stock in the first three months of fiscal 2026.
We currently plan to repurchase approximately $2.75 billion to $3.0 billion of common stock under our stock repurchase programs for fiscal 2027. As of May 2, 2026, approximately $3.5 billion remained available under our existing stock repurchase programs. For further information regarding equity repurchases, see Note D – Capital Stock and Earnings Per Share of Notes to Consolidated Financial Statements.
Dividends
We declared quarterly dividends on our common stock of $0.48 per share for the first three months of fiscal 2027 and $0.425 per share for the first three months of fiscal 2026. Cash payments for dividends on our common stock totaled $474 million for the first three months of fiscal 2027 and $424 million for the first three months of fiscal 2026.
30
CRITICAL ACCOUNTING ESTIMATES
There have been no material changes to the critical accounting estimates as discussed in TJX's Annual Report on Form 10-K for the fiscal year ended January 31, 2026.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
For a discussion of accounting standards, see Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements included in TJX’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and Note A—Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (“Form 10-Q”) contains “forward-looking statements.” These forward-looking statements generally can be identified by the use of words such as “aim,” “anticipate,” “approximately,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “potential,” “project,” “seek,” “should,” “strive,” “target,” “will,” and “would,” or any variations of these words or other words with similar meanings. These forward-looking statements address various matters that we intend, expect or believe may occur in the future, including, among others, some of the statements in this Form 10-Q under Item 1, “Consolidated Financial Statements” and Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” relating to, among others, the Company's anticipated operating and financial performance, business plans and prospects, investments, the availability of merchandise, execution of our business model, payment of dividends, plans for future stock repurchases, future use and availability of cash and cash equivalents, expected capital expenditures, trends in demand for our products, the impact of foreign exchange rates, expectations with respect to future store openings, the recovery of tariff refunds and the impact of fuel resources and supply chain on our inventory flow and financial performance and plans with respect to long-term indebtedness. Each forward-looking statement contained in this Form 10-Q is inherently subject to risks, uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from those expressed or implied by such statement.
We cannot guarantee that the results and other expectations expressed, anticipated, or implied in any forward-looking statement will be realized. Applicable risks and uncertainties include, among others: execution of buying strategy and inventory management; customer trends and preferences; competition; various marketing efforts; operational and business expansion; management of large size and scale; merchandise sourcing and transport; international trade and tariff policies; data security and maintenance and development of information technology systems; labor costs and workforce challenges; personnel recruitment, training, and retention; corporate and retail banner reputation; evolving corporate governance and public disclosure regulations and expectations with respect to environmental, social, and governance matters; expanding international operations; fluctuations in anticipated quarterly and annual operating results, financial performance, business plan prospects, investments and market expectations; inventory or asset loss; cash flow and plans with respect to long-term indebtedness; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; economic conditions and consumer spending; market instability; severe weather, serious disruptions or catastrophic events; disproportionate impact of disruptions during certain seasons of the fiscal year; commodity availability and pricing; fluctuations in currency exchange rates; fluctuations in fuel prices; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors set forth under Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended January 31, 2026, as well as the other information we file with the U.S. Securities and Exchange Commission (“SEC”).
We caution investors, potential investors, and others not to place considerable reliance on the forward-looking statements contained in this Form 10-Q. You are encouraged to read our filings with the SEC and any further disclosures we may make in our future reports to the SEC, available at www.sec.gov, on our website, or otherwise, for a discussion of these and other risks and uncertainties. Our forward-looking statements in this report speak only as of the date of this Form 10-Q, and we undertake no obligation to update or revise any of these statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-11 | Nemerov Jackwyn | Director | Sell | -957 | $168.59 | -$161,345 |
| 2026-06-10 | Benjamin Peter | SEVP, Group President | Sell | -10,926 | $165.00 | -$1,802,790 |
| 2026-06-09 | MEYROWITZ CAROL | Executive Chairman | Sell | -55,624 | $163.65 | -$9,102,740 |
| 2026-06-05 | Klinger John | SEVP, CFO | Sell | -6,235 | $160.77 | -$1,002,405 |
| 2026-06-03 | Canestrari Kenneth | SEVP - Group President | Sell | -31,447 | $157.50 | -$4,952,814 |
| 2026-06-05 | Herrman Ernie | CEO & President | Sell | -10,002 | $160.68 | -$1,607,117 |
| 2026-06-04 | Herrman Ernie | CEO & President | Sell | -28,000 | $158.32 | -$4,433,100 |
| 2026-06-03 | Herrman Ernie | CEO & President | Sell | -29,549 | $157.46 | -$4,652,679 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-28 10-Q expected by 2026-09-10 (in 74 days)
- ~2026-12-01 10-Q expected by 2026-12-14 (in 169 days)
- ~2027-03-30 10-K expected by 2027-03-30 (in 288 days)
- ~2027-05-28 10-Q expected by 2027-06-10 (in 347 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-29 10-Q Quarterly Report
- 2026-05-29 S-3ASR S-3ASR
- 2026-05-20 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-30 DEF 14A Proxy Statement
- 2026-03-31 10-K Annual Report
- 2026-02-25 8-K Earnings Release; Financial Statements and Exhibits
- 2025-12-02 10-Q Quarterly Report
- 2025-11-19 8-K Earnings Release; Financial Statements and Exhibits
- 2025-08-29 10-Q Quarterly Report
- 2025-08-20 8-K Earnings Release; Financial Statements and Exhibits
- 2025-05-30 10-Q Quarterly Report
- 2025-05-21 8-K Earnings Release; Financial Statements and Exhibits
- 2025-05-09 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2025-04-02 10-K Annual Report
- 2025-02-26 8-K Earnings Release; Financial Statements and Exhibits