TJX Companies Inc ( TJX ) shares are trading lower premarket on Wednesday after the first-quarter FY26 earnings result.

Sales rose 5% year-over-year (Y/Y) to $13.1 billion, beating the analyst consensus estimate of $13.0 billion.

Overall comp store sales increased 3% (Y/Y), at the high end of the company's plan, and were driven by an increase in customer transactions.

Also Read: TJX Companies ( TJX ) Q1 Preview: Report Could Reflect Durable Earnings Growth

Gross profit margin was 29.5%, a 0.5 percentage point decrease versus the prior year, due to negative mark-to-market adjustments on inventory hedges.

Ernie Herrman, president and CEO said, ”All divisions, both in the U.S. and internationally, drove increases in comp sales and customer transactions, which underscores the strength of our value proposition.”

Adjusted EPS of 92 cents beat the consensus estimate of 90 cents.

The company held $4.3 billion in cash and equivalents as of May 3 and generated $394 billion of operating cash flow in the quarter.

As of May 3, total inventories stood at $7.1 billion, compared to $6.2 billion last year.

During the first quarter, the company returned a total of $1.0 billion to shareholders, including the repurchase of shares worth $613 million.

The company continues to expect share repurchases of approximately $2.0 billion to $2.5 billion in fiscal 2026.

Outlook: TJX reaffirmed guidance for FY26 comparable sales growth of 2% – 3% and EPS of $4.34-$4.43 against a $4.49 estimate.

The company sees second quarter comparable sales growth of 2% – 3% and EPS of $0.97-$1.00 with an estimate of $1.03.

TJX’s second-quarter and FY26 guidance assumes current U.S. import tariffs from China and other nations, as of Wednesday, will persist.

Furthermore, for the full-year FY26, the company expects to fully offset the significant and ongoing tariff-related financial pressures.

Investors can gain exposure to the stock via VanEck Retail ETF ( RTH ) and iShares U.S. Consumer Focused ETF .

Price Action: TJX shares are down 1.88% at $132.39 premarket at the last check on Wednesday.

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