TJX Companies, Inc. lifted its full-year financial targets on Wednesday after reporting stronger-than-expected first-quarter results, sending shares higher in premarket trading. The parent of T.J. Maxx, Marshalls, and HomeGoods now expects fiscal 2027 comparable sales growth of 3% to 4%, up from the prior forecast of 2% to 3%. The company also raised its diluted earnings per share outlook to a range of $5.08 to $5.15, compared with the earlier estimate of $4.93 to $5.02.
Shares of TJX climbed 3.6% in premarket activity following the announcement, Reuters reported. The stock was set to open higher on the New York Stock Exchange when regular trading begins at 9:30 a.m. EDT.
The Framingham, Massachusetts-based retailer reported first-quarter comparable sales growth of 6% for the period ended May 2. Net sales increased 9% year over year to $14.32 billion, while net income reached $1.3 billion. Diluted earnings per share rose 29% to $1.19, reflecting strong operational performance across its banners.
Pretax profit margin expanded to 12.0%, up 170 basis points from the prior year, driven by higher sales, improved merchandise margins, and gains from fuel hedging. Chief Executive Ernie Herrman said the quarter's results were "well above our plan" and noted that the second quarter is off to a good start, with branded goods supply described as "outstanding."
Growth was broad-based across TJX's divisions. Marmaxx, which operates T.J. Maxx, Marshalls, and Sierra in the U.S., posted a 6% rise in comparable sales. HomeGoods saw a 9% increase, while TJX Canada grew 7%. The company's Europe and Australia segment recorded a 4% gain.
Despite the upbeat results, TJX flagged higher fuel costs as a persistent drag on its full-year outlook. The company cited rising freight and energy expenses, partly linked to geopolitical tensions, as a potential headwind. While the retailer lifted its sales and earnings guidance, it stopped short of raising its annual forecast further due to these cost pressures.
During the quarter, TJX generated $5.6 billion in cash and returned capital to shareholders through $604 million in stock buybacks and $471 million in dividends. The company also expanded its store footprint, opening 48 new locations to bring its total store count to 5,262. Planned share repurchases for the fiscal year were increased to a range of $2.75 billion to $3.0 billion.
The off-price retail model continues to attract budget-conscious consumers, as TJX offers branded and designer merchandise at discounted prices compared to traditional department stores. This positioning has helped the company maintain momentum even as broader retail competition intensifies, with rivals including Walmart, Amazon, and Ross Stores vying for value-oriented shoppers.
Investors will be closely watching TJX's earnings call scheduled for 11:00 a.m. ET, where management is expected to provide additional details on traffic trends, inventory quality, and the duration of elevated fuel costs.
