TJX Companies is accelerating its physical-store expansion strategy after another quarter of comparable-sales growth, raising its long-term global store target by 500 locations to 7,500.
The off-price retailer ended the fiscal second quarter with 5,285 stores, up 23 during the quarter. Its new 7,500-store target represents approximately 42% potential expansion from the current store base using TJX’s existing banners in countries where it already operates.
Beginning in fiscal 2028, TJX plans to accelerate annual store-opening growth to approximately 4%.
The expanded target comes as several of TJX’s businesses continue outperforming its largest U.S. division.
Consolidated comparable sales increased 4% during the second quarter. HomeGoods comparable sales jumped 7%, TJX International increased 7%, and TJX Canada rose 6%. Marmaxx, which includes TJ Maxx, Marshalls and Sierra in the U.S., posted more modest comparable-sales growth of 1%.
HomeGoods quarterly revenue increased 10% to $2.51 billion, while TJX International sales rose 11% to $2.09 billion. Total TJX sales increased 5% to $15.18 billion.
Management said the performance of HomeGoods, Canada and International highlights the benefits of the company’s geographic and banner diversification.
TJX also reported $1.5 billion of quarterly net income. Diluted EPS increased 24% to $1.36, although the figure included a $0.14 net benefit from tariff refunds. Excluding that benefit, adjusted EPS increased 11% to $1.22.
The company increased its fiscal 2027 pretax profit margin and EPS outlook while maintaining full-year comparable-sales growth expectations of 3% to 4%.
TJX’s long-term expansion plan indicates management continues to see significant whitespace for the off-price model despite already operating more than 5,000 stores across the U.S., Canada, Europe and Australia.
KEY QUOTES:
“We are planning to accelerate our store openings to 4% starting next year and now believe we can grow our overall global store base to a total of 7,500 stores in our existing retail banners in our current countries over the long term.”
Ernie Herrman, CEO and President of TJX Companies
