TJX’s first quarter results were marked by stronger-than-expected sales and profitability, driven by broad-based comp sales growth across all divisions and robust customer traffic. Management attributed the outperformance to a compelling value proposition, effective merchandising, and high inventory availability. CEO Ernie Herrman emphasized that “each of our divisions delivered strong comp sales growth and drove increases in customer transactions,” fueled by balanced gains in both average basket size and transaction counts. The company also noted that both apparel and home categories performed well, supported by efficient expense management and favorable fuel hedges.
Is now the time to buy TJX? Find out in our full research report (it’s free for active Edge members).
TJX (TJX) Q1 CY2026 Highlights:
- Revenue: $14.32 billion vs analyst estimates of $13.98 billion (9.2% year-on-year growth, 2.4% beat)
- EPS (GAAP): $1.19 vs analyst estimates of $1.01 (18.1% beat)
- Adjusted EBITDA: $2.02 billion vs analyst estimates of $1.77 billion (14.1% margin, 14% beat)
- EPS (GAAP) guidance for the full year is $5.12 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 11.8%, up from 10% in the same quarter last year
- Locations: 5,262 at quarter end, up from 5,121 in the same quarter last year
- Same-Store Sales rose 6% year on year (3% in the same quarter last year)
- Market Capitalization: $175.8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From TJX’s Q1 Earnings Call
- Lorraine Hutchinson (Bank of America) asked if increased transactions reflected consumer trade-down or shifting preferences. CEO Ernie Herrman explained there was no change in customer behavior, with balanced growth across all income groups and divisions.
- Brooke Roach (Goldman Sachs) inquired about the impact of fuel costs on margins and the benefit from fuel hedges. CFO John Klinger detailed that current guidance assumes flat fuel prices, and the Q1 fuel hedge benefit has already been realized.
- Matthew Boss (JPMorgan) questioned the durability of comp sales growth and whether new customer acquisition was a key driver. Herrman emphasized the strategic focus on both acquiring new, younger customers and increasing frequency among existing shoppers.
- Ike Boruchow (Wells Fargo) sought details on category trends at Marmaxx and HomeGoods, and on marketing runway. Herrman noted broad-based strength across categories and highlighted ongoing improvements and further potential in marketing effectiveness.
- Jay Sole (UBS) asked whether TJX would increase its long-term store target given recent expansion success. Herrman indicated management is evaluating opportunities for additional growth, both organically and through partnerships or joint ventures.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will watch (1) the pace and success of new store openings in Europe, Mexico, and other international markets; (2) the effectiveness of marketing initiatives in driving traffic, particularly among younger shoppers; and (3) TJX’s ability to maintain margin expansion amid fluctuating fuel prices and external cost pressures. Adaptation to consumer trends and further progress in vendor relationships will also be key.
TJX currently trades at $158.51, up from $150.68 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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