Key takeaways:
- TJX increased net sales 9% to $14.3 billion in its Q1.
- The value retailer is forecasting a 3% to 4% sales increase for the fiscal year.
- TJX added 48 stores in the quarter and is projecting 146 net-new locations this year, including additional stores in Europe.
Uncertain economic times are often growth opportunities for value-priced retailers, and TJX has certainly been taking advantage of that opportunity. For its 2027 fiscal year Q1, which ended May 2, the retailer generated net sales of $14.3 billion, a 9% increase over the same period the previous year. Comparable sales increased 6% for the company overall, led by a 9% jump for the HomeGoods banner and a 7% increase for TJX Canada.
The retailer is raising its sales outlook both for Q2, to 2%-3%, and also for the full fiscal year, for which it is forecasting a 3%-4% increase.
“Uneasiness [in the economy] is an opportunity for us to capture additional market share, because there are more consumers looking for value,” said Ernie Herrman, CEO and President of TJX during a call discussing the Q1 financial results. “With our extensive availability of quality branded merchandise, we’re in a great position to take advantage of the plentiful opportunities we see in the marketplace, and in the longer term, I see us expanding our global footprint as well as gaining market share both domestically and internationally.”
Retailer Boosts Store Count
TJX added a total of 48 stores in Q1: 45 in the U.S. across its banners, which also include TJ Maxx, Marshalls, Sierra and HomeSense, with the remainder in Canada (four stores), Europe (six stores) and Australia (three stores). Both Europe and Australia are home to the TK Maxx banner. The retailer said in February 2026 that it planned to open 146 net-new stores in 2026.
“We’re now in 10 countries; we opened our first store in Spain this past year, and we’re planning additional stores there this year,” said Herrman. “In terms of global [non-U.S.] store growth, there’s the potential to operate as many as 1,700 of these off-price stores.”
And while the company has long put its overall store count target at 7,000 locations, Herrman hinted that TJX’s ambitions could be even bigger than that. The retailer currently operates 5,262 stores, with the majority in the U.S. and Canada but also 753 in Europe and 91 in Australia, where the retailer has been operating for about a decade.
TJX also has established partnerships for international expansion, including a joint venture with Grupo Axo in Mexico and investment in Brands for Less, an off-price apparel, toy and home fashion retailer with 100+ stores in the UAE and Saudi Arabia.
New TJX Shoppers Skewing Younger
Herrman identified some of the reasons he’s bullish on TJX’s prospects, identifying the many ways the company is “playing offense.”
“Many of our retail banners are launching fresh new marketing campaigns,” Herrman said during the call. “They’ll demonstrate our value proposition and highlight the joy of shopping our stores as well as the loyalty of our customers. I’m confident our marketing strategy will attract new shoppers and encourage existing shoppers to shop more often.”
Many of the new-to-TJX customers are younger consumers, he noted. “There’s a disproportionate number of new Gen Z and millennial shoppers at all the TJX brands, certainly more than have been in the current mix.”
The retailer also sees potential in attracting new types of customers, including more males, particularly at its Sierra banner. “We’ve been very happy with Sierra and are growing its store count fairly aggressively,” said Herrman. “The team has created a different DNA and a good-better-best assortment within that lifestyle, which includes gear, outdoor apparel, some hardlines, a pet business and a healthy outdoor food business. This [mix] gravitates to a more upper-income customer and more men, so we’re bullish on the potential there.”
Merchandising Plays a Key Role in TJX Success
One of the retailer’s biggest strengths is its merchandising, which is designed for fast product turnover at the store level. Herrman praised the team responsible.
“We have more than 1,400 buyers in the marketplace throughout the year, working with a vast vendor network across good, better and best brands,” he said. “Then we’re allocating goods based on the demographics of each store, with an exciting mix of categories and brands every time [the customer] visits — and that’s whether they’re a first-time or long-time customer.”
Managing all that inventory and moving it quickly to stores presents a big challenge, particularly when you consider that TJX typically adds “thousands of vendors each year,” said Herrman.
“We work to be the first call for vendors when they have excess inventory,” Herrman added. “We look to become even more appealing to vendors looking to clear their inventory and grow their business. And in the new geographies around the world, we’re extremely confident that there’ll be more than enough merchandise to support our growth. The bigger we have become, the more availability we see.”
