A retailer of off-price apparel and home fashions, TJX runs familiar storefronts like TJ Maxx, Marshalls, HomeGoods, Winners, and Sierra, selling brand-name goods at steep discounts through opportunistic buying from thousands of vendors. The same stores go by TK Maxx in Europe and Australia, where the chain is the region's largest off-price brick-and-mortar retailer. With more than five thousand stores across four segments, it spans the US, Canada, Europe, and Australia.
Q1 FY2027 pre-tax margin expanded 1.7 points to 12.0% as cost of sales ratio fell 1.8 points
Pre-tax margin widened 1.7 points to 12.0% after a year of cost-ratio pressure. rose 9% to $14.3B and rose 1.8 points to 31.3% as the fell on favorable merchandise margin and . The quarter shows the margin recovery holding, with tariffs still a stated risk ahead.
Key takeaways
improved 1.7 percentage points to 12.0%, as the fell 1.8 points to 68.7% on favorable merchandise margin and .
Consolidated grew 9% to $14.3B, driven by a 6% increase, 2% from non-comp sales, and a 1% .
profit margin rose to 14.7% from 13.7% on higher and ; margin rose to 12.9% from 10.2% on lower freight costs and higher markon.
Section summaries
Management's Discussion and Analysis
Q1 FY2027 net sales rose 9% to $14.3B, comp sales up 6%, and pre-tax margin expanded 170 bps to 12.0%.
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Consolidated grew 9% to $14.3B, driven by a 6% increase, 2% from non-comp sales, and a 1% foreign currency benefit.
profit margin increased to 11.7% from 10.7% on and a favorable comparison against prior-year transactional foreign exchange headwinds.
profit margin edged up to 4.6% from 4.3% as higher from transactional FX benefits was partly offset by higher markdowns and store wages.
was $1,119.0M versus $394.0M a year earlier, aided by a credit card interchange fee settlement and higher ; the company plans $2.2B–$2.3B in FY2027 .
What changed
margin watch from Q1 FY2026 (10.7%) and FY2026 (13.4% dip on litigation): rose to 11.7% this quarter on and prior-year FX comparison, recovering partially.
watch from FY2025 (69.4%) and Q1 FY2026 (70.5%): fell to 68.7% this quarter, reversing the Q1 FY2026 rise and below the FY2026 level of 69.0%.
margin watch from FY2025 (10.9%) and Q1 FY2026 (10.2%): rose to 12.9%, confirming sustained margin gain alongside comp growth.
margin watch from Q1 FY2026 (13.7% after retention credit benefit): rose to 14.7%, holding above the prior-year-compromised level.
Versus Q4 FY2026, fell 19.3% to $14.3B from $17.7B and fell 28.0% to $1,721.0M, the normal seasonal drop after the holiday quarter.
What to watch
in coming quarters to see if the 68.7% holds or rises as the 2026 IEEPA global tariff hits sourcing costs per the FY2026 risk flag.
margin next quarter to see if the 4.6% level holds as markdowns and store wages offset FX benefits.
Pace of the $2.2B–$2.3B FY2027 plan and Spain store launch against continued and returns.
next quarter to confirm the 12.9% margin accompanies sustained comp growth.
improved 1.7 percentage points to 12.0%, as fell 1.8 points to 68.7% on favorable merchandise margin and .
rose to 14.7% (from 13.7%) on higher and ; margin jumped to 12.9% (from 10.2%) on lower freight costs and higher markon.
increased to 11.7% (from 10.7%) on and a favorable comparison against prior-year headwinds.
edged up to 4.6% (from 4.3%) as higher from transactional FX benefits was partly offset by higher and store wages.
surged to $1.1B from $394M, aided by a credit card interchange fee settlement and higher ; the company plans $2.2–$2.3B in FY2027 .
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. 31
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There have been no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026.
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See Legal Contingencies in Note K—Contingent Obligations, Contingencies, and Commitments of Notes to Consolidated Financial Statements for information on legal proceedings.
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See Legal Contingencies in Note K—Contingent Obligations, Contingencies, and Commitments of Notes to Consolidated Financial Statements for information on legal proceedings.
There have been no material changes to the risk factors disclosed in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended January 31, 2026, as filed with the Securities Exchange Commission on March 31, 2026.
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There have been no material changes to the risk factors disclosed in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended January 31, 2026, as filed with the Securities Exchange Commission on March 31, 2026.