The TJX Companies is a leading global off-price retailer of apparel and home fashions, operating over 5,200 stores and e-commerce sites. The company offers a rapidly changing assortment of brand name and designer merchandise at significant discounts, utilizing opportunistic buying and a flexible business model.
Business segments
10-K
MarmaxxHomeGoodsTJX CanadaTJX International
Recent News
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Earnings call: Q1 FY2027 FY2027
Intel
Free
May 20, 2026Confident
● Full transcript on file
Ernie Herrman (Chief Executive Officer and President), John Klinger (Executive Vice President, Chief Financial Officer)
Key metrics
Q1 FY2027 overall comp sales increased **6%**, with each division delivering strong comp growth and higher customer transactions.[1] Net sales were approximately **$14.32 billion**, up **9.2%** year over year and ahead of market expectations.[3][4] Diluted EPS was **$1.19**, up **29%** versus the prior year and well above plan and consensus estimat
Forward guidance
Management guided for Q2 FY2027 overall comp sales to increase **2%-3%**, consolidated sales in the range of **$15.0-$15.1 billion** (up **4%-5%**), and pre-tax profit margin of **11.4%-11.5%**, flat to up 10 bps versus last year.[1] For the full FY2027 year, they now expect overall comp sales growth of **3%-4%**, consolidated sales of **$63.2-$63.
Notable Q&A
In one notable Q&A exchange, analysts focused on the sustainability of the strong **6% comp sales** and traffic trends; management emphasized broad-based strength across divisions and reiterated confidence that the off-price model and disciplined buying would support continued positive comps, while
Surprise items
The company delivered Q1 sales, profitability, and EPS all **well above expectations**, with EPS of **$1.19** up **29%** year on year and meaningfully ahead of consensus, which was a positive surprise.[1][2][4] On the back of this beat, TJX **raised full-year FY2027 sales and profitability guidance*
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$60,372 million USD
7% YoY
Operating margin
11.9%
Net income
$5,494 million USD
Free cash flow
$4,917 million USD
Dividend / share
$1.70
Total debt
$2,878 million USD
Cash: $6,230 million USD
CapEx guidance
Approximately $2.2 billion to $2.3 billion for fiscal 2027.
Earnings quality:HIGH
Cash conversion:1.3x
Non-recurring items: Net gain of $419 million from settlement of credit card interchange fees litigation, net of legal expenses., Non-recurring settlement-related expenses of $116 million for incentive compensation., Non-recurring settlement-related expenses of $82 million for discretionary bonus for eligible non-bonus plan Associates.
TJX is a fundamentally excellent business — Q1 FY27 delivered 6% comps, 29% EPS growth, and raised full-year guidance — but at ~29.4x TTM P/E and ~11.3% below its 52-week high, the stock already prices in execution near perfection with a consensus analyst target of $177.63 implying ~17% upside that is well-known and fully reflected in 19 buy ratings. The muted post-Q1 earnings stock reaction (stock is still ~$19 below its 52-week high despite a beat-and-raise) signals the market is aware of the valuation ceiling; forward comp sales guidance decelerating to 3-4% from 5% in FY26 means the growth narrative is softening. Over 5 trading days with no near-term catalyst — next earnings not until August 19, 2026 — and neutral macro backdrop, there is no identifiable edge in either direction.
Strongest bull case
TJX's off-price model is a structural winner in a tariff-and-inflation environment: Q1 FY27 EPS of $1.19 came in 29% above the prior year, full-year FY27 EPS guidance was raised to $5.08-$5.15, and management described merchandise availability as 'off the charts,' giving the company exceptional inventory sourcing leverage heading into Q2.
Strongest bear case
Forward comp sales guidance was deliberately guided down to 3-4% for FY27 vs. 5% in FY26, and minimum wage pressures across multiple jurisdictions are compressing SG&A — the stock's muted reaction post a strong Q1 beat-and-raise suggests the market already understands TJX is transitioning to a lower-growth, higher-cost phase, limiting near-term re-rating potential at ~29x earnings with no upcoming catalyst for 5+ weeks.
What the market may be missing
The market may be underweighting the EPS quality differential: TJX's Q1 FY27 EPS beat was partly driven by a 29% YoY surge that reflects easy comparisons (Q1 FY26 EPS was depressed by tariff headwinds the company explicitly called out). When normalized for the base effect, underlying EPS growth is closer to high single digits — more in line with what a ~26x forward multiple should deliver, leaving limited surprise potential in the next reporting window.
Chief Executive Officer and President · The TJX Companies Inc.
CEO since 2016
Total compensation
$26,603,537 ▲ 13.3% YoY
Prior year: $23,482,528
Pay vs performance
Aligned
Board assessment
Say-on-pay approval
94%
Shareholder vote
Board independence
8/10 (80%)
Base salary$1,700,000
Bonus / incentive$8,386,100
Stock awards$14,300,173
CEO letter to shareholders
Signal
No shareholder letter on file for TJX
Some companies file their annual report without a separate CEO letter.
When available, Xavier extracts strategic themes, tone analysis, and
forward-looking statements to help you read between the lines.
Executive compensation
Signal
Name
Title
Total compensation
Ernie Herrman
Chief Executive Officer and President
$26,603,537
John Klinger
SEVP, Chief Financial Officer
$6,962,372
Carol Meyrowitz
Executive Chairman
$13,371,631
Douglas Mizzi
SEVP, Group President
$8,068,565
Kenneth Canestrari
SEVP, Group President
$8,147,168
Source: DEF 14A proxy statement · 2026-04-30
Governance
Pro
Dual-class shares:No
Poison pill:No
Clawback policy:Yes
Stock ownership req.:Yes
Shareholder proposals
Election of 10 directors named in this proxy statement
FOR
Pending
Ratification of appointment of PricewaterhouseCoopers as TJX’s independent regis
FOR
Pending
Advisory approval of TJX’s executive compensation (say-on-pay)
2029 Amended and Restated Revolving Credit Agreement
Matures 2029-05-09 · Filed 2025-05-09
Floating · SOFR
unsecured
88873CAL688873CAM4
Credit$1,000,000,000
2026 Revolving Credit Agreement
Matures 2026-06-25 · Filed 2023-05-26
Floating · SOFR
unsecured
88873CAS188873CAT9
Revolver$500,000,000
2028 AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT
Matures 2028-05-08 · Filed 2023-05-26
Floating · SOFR
88873CAL688873CAM4
Revolver$1,000,000,000
2026 REVOLVING CREDIT AGREEMENT
Matures 2026-06-25 · Filed 2021-06-29
Floating · LIBOR | SOFR
unsecured
88873CAS188873CAT9
Revolver
364 Day Revolving Credit Agreement
Matures 2021-08-09 · Filed 2021-03-31
7 additional agreements on file
Financial covenants
Maximum Leverage Ratio
≤ 4.50 to 1.00 for Test Period ending July 31, 2021; ≤ 4.00 to 1.00 for Test Period ending October 30, 2021; ≤ 3.50 to 1.00 for Test Period ending January 29, 2022 and thereafter
Leverage Ratio (Funded Debt to EBITDAR)
2030 Revolving Credit Agreement
Maximum Leverage Ratio
≤ 3.50 to 1.00
Leverage Ratio (Funded Debt to EBITDAR)
2029 Amended and Restated Revolving Credit Agreeme
Maximum Leverage Ratio
≤ 3.50x
Leverage Ratio (Funded Debt to EBITDAR)
2026 Revolving Credit Agreement
Maximum Leverage Ratio
≤ 4.50x (for Test Period ending July 31, 2021), ≤ 4.00x (for Test Period ending October 30, 2021), ≤ 3.50x (for Test Period ending January 29, 2022 and thereafter)
Leverage Ratio (Funded Debt / EBITDAR)
2026 REVOLVING CREDIT AGREEMENT
Maximum Leverage Ratio
≤ 5.00x (as of May 1, 2021) | ≤ 4.50x (as of July 31, 2021)
Leverage Ratio (Funded Debt to EBITDAR)
364 DAY REVOLVING CREDIT AGREEMENT
Minimum EBITDAR
≥ $650,000,000
EBITDAR
364 DAY REVOLVING CREDIT AGREEMENT
Minimum Liquidity
≥ $1,500,000,000
Liquidity
364 DAY REVOLVING CREDIT AGREEMENT
Maximum Leverage Ratio
≤ 3.25 to 1.00 (as of Feb 1, 2020); ≤ 5.00 to 1.00 (for Test Period ending May 1, 2021); ≤ 4.50 to 1.00 (for Test Period ending July 31, 2021); ≤ 4.00 to 1.00 (for Test Period ending October 30, 2021); ≤ 3.50 to 1.00 (for each Test Period ending thereafter)
Leverage Ratio (Funded Debt / EBITDAR)
2024 Revolving Credit Agreement
3 additional covenants on file
CUSIP identifiers (4 on file)
88873CAL688873CAS188873CAT988873CAN2
Cross-default risk
8 agreements contain cross-default provisions — a covenant breach on one facility may trigger default on others.
Xavier risk radar
Pro
Covenant headroom
Moderate leverage — no covenants on file
Earnings quality
High quality (cash conversion 1.3x)
Risk trend
Risk increasing — Failure to execute the opportunistic buying strategy and successfully manage inv
Mgmt narrative
Management tone: Cautiously optimistic
Analyst drift
Insufficient data
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jul 12, 2026
NEUTRAL
6.1/10
100%
TJX is a fundamentally excellent business — Q1 FY27 delivered 6% comps, 29% EPS growth, and raised f...
$151.34
Sched.
Jul 11, 2026
NEUTRAL
6.2/10
100%
TJX is a high-quality defensive retailer, but at roughly 29x trailing earnings and 26x forward earni...
$151.34
Sched.
Jun 07, 2026
NEUTRAL
6.3/10
100%
TJX delivered a genuinely strong Q1 FY27 beat — 6% comp sales growth, 29% EPS growth, and raised ful...
$160.71
Sched.
May 31, 2026
NEUTRAL
5.8/10
100%
TJX delivered a blowout Q1 FY27 on May 20 — 6% comp sales growth, EPS of $1.19 (+29% YoY), and a rai...
$154.75
Sched.
May 24, 2026
NEUTRAL
6.2/10
100%
TJX just delivered a blowout Q1 FY27 (EPS $1.19 vs. $1.00 est., +29% YoY; comps +6%), raised full-ye...
$158.27
Sched.
May 17, 2026
NEUTRAL
6.0/10
100%
TJX faces a binary event within the 5-day window — Q1 FY27 earnings on May 20 — creating a classic p...
$147.43
Sched.
May 10, 2026
NEUTRAL
6.2/10
100%
TJX is a best-in-class operator with a demonstrably resilient off-price model that has consistently ...
$153.36
Sched.
May 03, 2026
NEUTRAL
5.7/10
100%
TJX is a high-quality off-price retailer with a demonstrably resilient business model — FY26 annual ...
$156.83
Sched.
Apr 12, 2026
BULLISH
6.7/10
50%
TJX is printing at its 52-week high with a -2.06% pullback that likely reflects broad market tariff ...
$161.60
Sched.
Showing last 9 signals
TJXThe TJX Companies Inc.
Signal
FY2026 annual report (10-K filed 2026-03-31)
INCOME STATEMENT
?Revenue
$60,372 million USD7% YoY
Total sales from retail, e-commerce, restaurants, travel, and consumer products. Up 7% from last year. Management has guided capital spending of Approximately $2.2 billion to $2.3 billion for fiscal 2027..
?Operating income
$7,178 million USD
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 11.9%, meaning 12 cents of every dollar of revenue becomes operating profit.
?Net income
$5,494 million USD
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 9.3%. Note: results include non-recurring items (net gain of $419 million from settlement of credit card interchange fees litigation, net of legal expenses., non-recurring settlement-related expenses of $116 million for incentive compensation.) that may not repeat.
?Free cash flow
$4,917 million USD
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$1.19
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$1.70
Cash paid to shareholders each year for every share they own. Consumer discretionary dividends tend to fluctuate with economic cycles and consumer spending.
BALANCE SHEET
?Total assets
$36.2B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes retail locations, brand value, inventory, and distribution networks.
?Cash & equivalents
$6,230 million USD
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$2,878 million USD
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $6,230 million USD in cash against this debt.
?Shares outstanding
1,106,810,654
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
?Debt-to-equity ratio
0.3%
How much debt the company uses for every dollar of shareholder equity. Under 100% means more equity than debt (conservative). Over 200% means heavy leverage. Banks and utilities naturally run higher ratios.
CASH FLOW
?Operating cash flow
$1.1B
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Capital expenditure
$662M
Money spent on long-term assets — new stores, warehouses, delivery infrastructure, and technology. This is the cost of maintaining and growing the business. Management has guided Approximately $2.2 billion to $2.3 billion for fiscal 2027. for capital spending.
?Free cash flow
$457M
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of a company's financial health.
?Depreciation & amortization
$336M
A non-cash expense that spreads the cost of retail locations, warehouses, and delivery fleet over their useful life. This reduces reported income but no cash actually leaves the company — that's why it gets added back to calculate EBITDA and operating cash flow.
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Cash conversion
1.3x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 1.3x, the company is converting reported profits to cash efficiently.
?Non-recurring items
3 identified
One-time items that affect the bottom line but won't repeat: net gain of $419 million from settlement of credit card interchange fees litigation, net of legal expenses., non-recurring settlement-related expenses of $116 million for incentive compensation., non-recurring settlement-related expenses of $82 million for discretionary bonus for eligible non-bonus plan associates.. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious Optimistic
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
Failure to execute the opportunistic buying strategy and successfully manage inventory, leading to potential adverse effects on results. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
77.21%
WACC
7.62%
🟢 VALUE CREATOR — EVA Spread: 69.59%
?WACC
7.62%
Weighted Average Cost of Capital — the minimum return The TJX Companies Inc. must earn on its investments to satisfy both debt holders and shareholders. Computed from a 98.30% equity / 1.70% debt capital structure. If the company earns less than 7.62% on its invested capital, it is destroying shareholder value.
?Cost of equity
7.68%
The return shareholders demand for holding TJX stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (0.62) × Equity Risk Premium (5.50%). A beta of 0.62 means TJX is less volatile than the overall market.
?Cost of debt (after-tax)
4.26%
What The TJX Companies Inc. effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 22.60%.
?Capital structure
E: 98.30% / D: 1.70%
How The TJX Companies Inc. finances its operations — the split between equity (stock market value: $166.1B) and debt (total borrowings: $2.9B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
77.21%
Return on Invested Capital — how efficiently The TJX Companies Inc. turns its total invested capital into after-tax operating profit. NOPAT ($5.9B) ÷ Invested Capital ($7.7B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$5.4B
Economic Value Added — the dollar amount of value The TJX Companies Inc. created (or destroyed) above its cost of capital. NOPAT ($5.9B) minus the capital charge (Invested Capital × WACC = $586M). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$5.9B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($7.7B) × (1 - Tax Rate 22.60%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jul 12, 2026.