TJX Companies, Inc.

Performance Overview: TJX Companies reported a consolidated comp sales growth of 3% for Q1 FY 2026, driven primarily by an increase in customer transactions across all divisions, with both apparel and home categories seeing positive growth. Diluted earnings per share reached $0.92, exceeding expectations.

Positive Outlook for Q2 and Beyond: The company anticipates comp sales growth of 2% to 3% for Q2, with consolidated sales projected between $13.9 billion and $14 billion. The second quarter is off to a strong start, benefitting from improved weather and a strong assortment of merchandise.

Margin Expectations and Challenges: The pretax profit margin for Q2 is expected to decline to 10.4%-10.5%, significantly impacted by tariffs on imported goods and a stronger dollar affecting gross margins. The company plans to offset these challenges through cost efficiencies, productivity initiatives, and strategic pricing adjustments.