Discount retailer TJX (TJX.US) Q2 sales and profits exceed expectations, but accelerated expansion plan raises concerns

Jit Tong Finance APP has learned that the US discount apparel and home goods retailer TJX (TJX.US) released its financial report for the second quarter of fiscal year 2027 on Wednesday, with several key indicators exceeding market expectations, but its accelerated new store opening plans have made investors uneasy.

Data show that for the second quarter ended August 1, TJX reported net sales of $15.2 billion, up 5% year-on-year; same-store sales grew 4%, and adjusted earnings per share rose 11% year-on-year to $1.22. All these indicators beat market expectations.

In the first half of fiscal year 2027, the company’s net sales reached $29.5 billion, an increase of 7% year-on-year; same-store sales increased by 5%. Net profit for the first half was $2.9 billion. Excluding a net gain of $0.14 from tariff refunds, adjusted earnings per share were $2.41, up 19% from the same period last year.

As of the end of the quarter on August 1, the company’s total number of stores increased by 23 to 5,285, with total sales area growing by 0.4% compared to the previous quarter.

TJX CEO Ernie Herrman said in the earnings report: “I am very pleased with our across-the-board above-expectation results in the second quarter. Overall, same-store sales grew 4%, and both margins and earnings per share far exceeded our expectations. While Marmaxx’s sales were below expectations, HomeGoods, TJX Canada, and TJX International all posted significant same-store sales growth of 6% to 7%, highlighting the strength of our global, diversified business.”

In the second quarter, the company returned $1.3 billion to shareholders through share buybacks and dividends. It also received a $331 million IEEPA tariff refund in the quarter. Previously, the US Supreme Court ruled that the Trump administration’s tariffs levied under the International Emergency Economic Powers Act (IEEPA) were unlawful and initiated a massive refund process.

TJX also announced plans to increase store growth to 4% annually from fiscal year 2028 onward, and has raised its long-term global store target to 7,500 locations. However, under the pressure of inflation eroding consumer purchasing power, TJX’s expansion plans have raised concerns in the market.

In terms of guidance, TJX expects third-quarter same-store sales for fiscal year 2027 to grow 2% to 3%, with adjusted earnings per share of $1.30–$1.32. The company also expects to receive additional IEEPA tariff refunds in the third quarter, which will help lower sales costs.

For the full year, the company maintains its previous guidance for fiscal year 2027 same-store sales growth of 3% to 4%. Excluding an expected net gain of about $0.16 from tariff refunds, the company has raised its full-year adjusted earnings per share guidance to the $5.15–$5.20 range.

As of press time, TJX shares were down 3.97% pre-market, having earlier fallen as much as 5%.