TJX Companies 8-K
PositiveEarningsGuidance raised
Tariff refunds boosted profit as comps beat plan; full-year margin and EPS outlooks raised on both reported and adjusted bases.
Filed 2026-08-19 09:09 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 FY2027 results with Q3 and full-year guidance. Net sales rose 5% and comparable sales grew 4%, above plan; pretax margin and diluted EPS were also well above plan. TJX raised its FY2027 pretax margin and EPS outlook, while maintaining its comparable-sales outlook. Results included a $219M net pretax benefit from tariff refunds, after related compensation accruals.
Key Figures
| Metric | Q2 FY2027 | Q2 FY2026 | Y/Y |
|---|---|---|---|
| Net sales | $15.2B | $14.4B | +5% |
| Net income | $1.52B | $1.24B | +22.3% |
| Diluted EPS | $1.36 | $1.10 | +24% |
| Diluted EPS, non-GAAP adjusted | $1.22 | — | +11% |
- H1 FY2027 net sales were $29.5B (+7%); net income was $2.85B vs $2.28B (+25%); diluted EPS was $2.55 vs $2.02 (+26%), and adjusted diluted EPS was $2.41 (+19%). Consolidated comparable sales rose 4% in Q2 and 5% in H1.
- Q2 pretax margin was 13.3%, up 1.9 percentage points; adjusted pretax margin was 11.9%, up 0.5 points. The $331M in tariff refunds was partly offset by $112M of related compensation accruals. Merchandise margin drove the increase in gross margin; higher store wages and payroll costs drove higher SG&A as a share of sales.
- Q2 operating cash flow was $2.2B; cash at quarter-end was $6.0B. TJX repurchased 5.1M shares for $798M and paid $529M in dividends; weighted average diluted shares fell 1% Y/Y. Inventory was $7.9B vs $7.4B a year earlier.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Consolidated comparable sales | Q3 FY2027 | +2% to +3% | — | — |
| Pretax profit margin | Q3 FY2027 | 12.8% to 12.9% | — | — |
| Adjusted pretax profit margin, non-GAAP | Q3 FY2027 | 12.3% to 12.4% | — | — |
| Diluted EPS | Q3 FY2027 | $1.36 to $1.38 | — | — |
| Adjusted diluted EPS, non-GAAP | Q3 FY2027 | $1.30 to $1.32 | — | — |
| Consolidated comparable sales | FY2027 | +3% to +4% | — | Reaffirmed |
| Pretax profit margin | FY2027 | 12.3% to 12.4% | — | Raised |
| Adjusted pretax profit margin, non-GAAP | FY2027 | 12.0% to 12.1% | — | Raised |
| Diluted EPS | FY2027 | $5.31 to $5.36 | — | Raised |
| Adjusted diluted EPS, non-GAAP | FY2027 | $5.15 to $5.20 | — | Raised |
| Share repurchases | FY2027 | ≈$2.75B to $3.0B | — | Reaffirmed |
| Store-opening growth | FY2028 | 4% | — | — |
| Long-term global store target | Long term | 7,500 stores | 7,000 stores | Raised |
Q3 and FY2027 adjusted outlook excludes expected net tariff-refund benefits: 0.5 percentage points of Q3 pretax margin and $0.06 of Q3 EPS; 0.3 percentage points of FY pretax margin and $0.16 of FY EPS.
Investor Takeaways
- Q3 comparable sales, pretax margin and EPS vs the guided ranges will show whether Q2’s above-plan performance carries forward.
- Additional tariff refunds are expected in Q3, but their amount and timing remain uncertain; the adjusted results exclude the stated expected net benefit.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3