TJX Posts Q1 Comps Growth

Tjx companies (TJX -2.93%, On May 21, 2025, the first quarter financial year 2026 results were reported, with 3% comparable sales increase, pretax profit margin of 10.3%, and a thin EPS of $ 0.92. The management maintained the FY2026 guidance throughout the year to increase sales and income, assuming that “the current level of tariffs on imports from China and other countries from May 21, 2025 will remain in place for the remaining year remaining. The company’s entire year may assume 2026 guidance that it can experience significant growth.”

The major insight to be below focuses on the margin liver, and strategic demographic conditions between tariffs and inflation below.

Inventory agility gives strategic benefits despite global disintegration

The level of inventory increases 15% on the basis of a balance sheet and 7% per store from year to year, indicating that the TJX industry’s supply chain is buying opportunistic between uncertainty and volatility of goods. The transcript has highlighted how management reinforces the classification between categories and regions based on the dynamics of real -time seller and competitive supply pressures in a flexible manner.

“We only see that we are running in terms of availability because we are half your back. On your point, when some sellers are talking about cutting back or delaying, can we see a category here or where there is traditionally less availability, we are traditionally cutting back, which are taking back our flexibility. We will leave a category.
– Erny Herman, Chief Executive Officer

This structural merchandising flexibility molds the focused supply to TJX and enables rapid occupation of price purchase, while supporting frequent sales and customer traffic in the turbulent macro environment.

Margine liver tariff and inflation remains intact through the instability

HomeGoods distributed 4% COMP sales growth and better section margin by 70 basis points, weakness of industry home category. Gross margin contraction of 50 basis digits and planned Q2 headwinds are attributed to tariffs and hedging effects, not underlying merchandising weakness. Less than 10% of the product is direct thex, and the wide playbook of management includes real-time retail adjustment and sourcing shifts to protect the price perception and margin structure.

“We have other liver. This environment has the ability to buy, buy, buy, in fact, I would say, more beneficial and beneficial. … Our buyers are not trained, they do not use a markup wheel. … Our buyers work backwards and do not start with costs and focus on other couples.”
– Erny Herman, Chief Executive Officer

The purchase process significantly reduces the impact of product cost instability and enables TJX to prioritize margin or quantity based on competitive and consumer situations, which distinguishes its business models from less agile retailers.

Comprehensive demographic access transactions increase and increase share profit

All income demographic bands provided strong sales, with slight inclination towards low-income segments, the price accelerates under economic pressure. The management cites the consistent transaction-led ComP benefits and diverse store marketing, which is in the form of the drivers of the resolution market share capture.

“In all our income demographic bands, we saw strong sales in all the bands that lend slightly towards low income demographic. … When you look at our overall sales, mainly by transactions … Customer is worried about the economy, you know, many of them are looking for price and … TJX companies, Ink.
– John Clinger, Chief Financial Officer

Constant comprehensive-based traffic and sales growth, even contestants rationalize stores with transfer of consumer budget, reduce the status of TJX for continuous share benefits in bicycles and reducing dependence on any single corort or channel.

looking ahead

The management confirmed the full-year FY2026 guidance for comparable sales increase of 2% to 3%, as well as:

• Consolidated sales of $ 58.1 billion to $ 58.6 billion (from 3% to 4%) for FY2026.
• Pretax profit margin 11.3% to 11.4% (10-20 basis points).
• EPS (GAAP) $ 4.34 to $ 4.43 ( +2% to +4%).

Q2 fy2026 for guidance calls:

• 2% to 3% comparable sales growth.
• Sales $ 13.9 billion to $ 14.0 billion.
• EPS of $ 0.97 to $ 1.00 ( +1% to +4%).