TJX Companies raised its fiscal 2027 adjusted earnings guidance to $5.15 to $5.20 per share from $5.08 to $5.15, alongside expectations for comparable sales growth of 3% to 4% and consolidated sales of $63.4 billion to $63.8 billion, up 5% to 6%. The off-price retailer also lifted its long-term global store target by 500 locations to 7,500 and plans to accelerate annual store growth to 4% beginning in fiscal 2028. Operating cash flow reached $3.3 billion in the first half of fiscal 2027, up from $2.2 billion a year earlier, and TJX returned $2.4 billion to shareholders in the first half, including $1.4 billion of share repurchases and $1 billion of dividends, while management continues to expect fiscal 2027 repurchases of about $2.75 billion to $3 billion. The growth case faces execution and cost risks: Marmaxx comparable sales rose just 1% in the second quarter, and adjusted selling, general and administrative costs were 19.7% of sales, 20 basis points unfavorable year over year on higher store wage and payroll costs, with third-quarter adjusted gross margin projected at 32.1% to 32.2%, down 40-50 basis points on higher fuel costs. TJX's forward 12-month price-to-sales ratio of 2.06 sits above the Zacks sub-industry's 1.58 and the stock's five-year median of 1.95, and its first-year forward P/E is 33.41, leaving the investment case tied to earnings delivery, Marmaxx improvement and progress toward the larger store target.
The TJX Companies IncTJX raised fiscal 2027 adjusted EPS guidance and lifted its long-term store target while returning $2.4B to shareholders.
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