TJX Cos. (TJX) F2Q27 First Take 2Q adj

Equity Research 19 August 2026 | 6:41AM MDT

TJX Cos. (TJX): F2Q27 First Take: 2Q adj. EPS beat and FY guidance raise; Marmaxx in focus as comps moderate

TJX reported adj. F2Q27 EPS of $1.22, above GS/FactSet consensus at $1.19. Overall Brooke Roach, CFA | comp store sales were +4%, above GS/consensus at 3.8%/3.3%, with Marmaxx Goldman Sachs & Co. LLC comps at +1% and HomeGoods comps at +7%. Adjusted results exclude a $0.14 net Mentesnot Adamu benefit from tariff refunds. Excluding tariff refunds, adj. gross margins of 31.4% were | above GS/consensus at 31.0%, with management noting the increase was driven by Goldman Sachs & Co. LLC

higher merchandise margins. Adj. SG&A as % of sales came in at 19.7% vs. Carly Chasen | GS/consensus of 19.6%/19.5%. Net, this drove adj. pre-tax profit margin of 11.9%, Goldman Sachs & Co. LLC above GS/consensus at 11.6%.

Looking ahead, TJX raised its FY27 guidance and now expects adj. EPS of $5.15-$5.20 (vs. $5.08-$5.15 prior), compared to GS/consensus at $5.25/$5.23. Comps are still expected to be in the range of 3%-4% compared to GS/consensus at 4.3%/3.8%, and adj. pre-tax profit margins are expected between 12.0%-12.1% (vs. 11.9%-12.0% prior) compared to GS/consensus at 12.1%. For F3Q, management expects comps of 2%-3%, adj. pretax profit margins of 12.3%-12.4%, and adj. EPS at $1.30-$1.32, vs. GS/consensus at 3.8%/3.1%, 12.7%/12.6%, and $1.35, respectively.

While investor expectations were muted into today’s print, we see the magnitude of the sequential slowdown at the Marmaxx banner as a surprise. Marmaxx comps at +1% represented the weakest quarter for the banner since 2QFY23 and decelerated 5pts Q/Q. While all other banners delivered robust continued strength (in the 6-7% comp range), we believe conference call commentary will be critical as investors look to gain a better understanding of the drivers of the Marmaxx comp trend in the quarter and the banner’s future growth opportunities against toughening compares. However, we are encouraged by management’s commentary in the press release which indicates 3Q is off to a strong start and that the company is seeing improvement at the Marmaxx division to start the quarter. Management also pointed to outstanding availability of merchandise and several initiatives in place to drive traffic / sales in the key fall/holiday shopping season. Separately, management also indicated plans to accelerate store openings to 4% beginning next year and the company announced a new long-term store base target of 7,500 stores in existing banners in current countries vs. 7,000 prior.

Key highlights n Sales: Consolidated comp growth of +4% was reported above GS/consensus at 3.8%/3.3%. Net sales increased +5.4% Y/Y vs. of GS/consensus estimates of 5.5%/5.3%. Marmaxx comps increased +1% vs. GS/consensus 4.0%/3.0%.

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HomeGoods comp sales increased +7%, which was above GS/consensus at 4.0%/4.8%, driving sales growth at +9.7% Y/Y. TJX Canada comps increased +6%, with revenues up +6.4% Y/Y, above GS/consensus expectations of 3.5%/2.8%. TJX International comps were +7%, with sales up +10.6% Y/Y, above GS/consensus 3.0%/3.8%. n Margins: Adj. gross margins of 31.4% were above GS/consensus at 31.0%, with management citing higher merchandise margins as the driver of the improvement. Adj. SG&A as % sales came in at 19.7% vs. GS/consensus expectations of 19.6%/19.5%. Net, this drove adj. pre-tax profit margin of 11.9%, above GS/consensus at 11.6%. n Balance sheet: TJX’s quarter end cash balance was $6.0bn. Inventory increased 6.6% Y/Y vs. GS expectations for +6.3% Y/Y. On a per-store basis, inventory was up 2% on a reported basis and up 3% ex-FX Y/Y.

Valuation…