TJX Companies Inc (NYSE:TJX) reported stronger-than-expected first-quarter results on Wednesday, as a surge in customer traffic across all its retail banners lifted sales and profit above estimates.
Net sales rose 9% year over year to $14.3 billion, topping the $14 billion consensus estimate, while diluted earnings per share jumped 29% to $1.19, well above the $1.02 analysts had forecast.
The company said growth was driven entirely by an increase in customer transactions rather than higher prices, with comparable store sales rising 6% on a consolidated basis. HomeGoods led the way with a 9% comparable sales gain, followed by TJX Canada at 7% and Marmaxx, which includes T.J. Maxx and Marshalls, at 6%.
International operations posted 4% comparable growth.
Management pointed to a strong buying environment as a key tailwind, noting that the availability of branded merchandise in the wholesale market has made it possible to source premium products at favorable costs, supporting merchandise margins. Favorable freight costs and fuel hedges also contributed to operational leverage in the quarter.
TJX ended the period with $5.6 billion in cash and returned $1.1 billion to shareholders through buybacks and dividends.
For fiscal year 2027, the company raised its diluted EPS guidance to a range of $5.08 to $5.15, from a prior range of $4.93 to $5.02, and lifted its comparable sales growth outlook to 3% to 4% from 2% to 3%.
Jefferies, in a first-take note, called the result a clear beat-and-raise and said it reinforced continued strength in the off-price retail sector.
The bank noted that while TJX raised full-year guidance, management is not fully flowing through the first-quarter upside, citing higher expected fuel costs as a headwind in coming quarters.
Shares of TJX were up 5.3% in early trading on Wednesday.