TJX Companies, Inc. (NYSE:TJX) stock rose Wednesday after the off-price retailer reported first-quarter results that topped Wall Street expectations and raised its full-year earnings outlook.

Investor sentiment also improved after the company posted broad-based comparable sales growth and margin expansion across several key divisions.

Quarterly Results Beat Expectations

The company reported first-quarter earnings of $1.19 per share, exceeding the analyst consensus estimate of $1.01. Revenue rose 9% year over year to $14.32 billion, above Wall Street expectations of $14.00 billion.

TJX said consolidated comparable sales increased 6% in the quarter, ahead of its internal forecast.

Comparable sales increased 6% at Marmaxx, 9% at HomeGoods and 7% at TJX Canada during the first quarter of fiscal 2027. TJX International posted a 4% increase in comparable sales from a year earlier.

Gross profit margin expanded to 31.3% from 29.5% a year ago, driven by higher merchandise margins.

Pretax profit margin increased 170 basis points year over year to 12%, also ahead of the company's expectations.

Inventory totaled $7.7 billion as of May 2, 2026, compared with $7.1 billion a year earlier.

TJX generated $1.1 billion in operating cash flow during the quarter and ended the period with $5.6 billion in cash.

The company also raised its planned fiscal 2027 share repurchases to a range of $2.75 billion to $3.0 billion.

During the quarter ended May 2, 2026, TJX added 48 stores, bringing its total store count to 5,262 locations. Total square footage increased 0.8% from the prior quarter.

TJX Outlook Raised

The company said it is actively testing new marketing approaches to better connect with consumers, reinforce its value offering, make shopping more engaging, and strengthen customer loyalty.

Management said early results have been encouraging and expressed confidence that the strategy will help attract new customers while increasing visits from existing shoppers.

TJX raised its fiscal 2027 GAAP earnings guidance to a range of $5.08 to $5.15 per share, up from its prior forecast of $4.93 to $5.02 per share. Analysts were expecting $5.13 per share.

For the second quarter of fiscal 2027, the company expects GAAP earnings of $1.15 to $1.17 per share, compared with analyst estimates of $1.18 per share.

TJX expects second-quarter consolidated comparable sales growth of 2% to 3% and a pretax profit margin of 11.4% to 11.5%.

TJX Price Action: TJX Companies shares were up 5.96% at $159.65 at the time of publication on Wednesday, according to Benzinga Pro data.

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