TJX Keeps Annual Forecast After Strong Q1, Says Will Absorb Tariffs Impact: Retail Sentiment Jumps

TJX Companies (TJX) maintained its fiscal 2026 outlook on Wednesday and said it would be able to absorb the higher costs from tariffs, allaying investor fears of an all-out slump in retail sales from aggressive U.S. policies.

The discount retailer's positioning came after a strong first quarter, which beat Wall Street expectations for sales and profit, although its current quarter outlook missed the mark.

On the analyst call, management said stronger-than-expected retail trends and TJX's ability to adjust prices and diversify sourcing would allow it to offset the impact of tariffs.

President Donald Trump announced sweeping tariffs in April, only to pause some later and offer concessions on select goods like electronics and semiconductors.

The U.S. is in talks to reduce trade tariffs with multiple countries, and a recent agreement with China, one of its key trading partners, offered much-needed relief to businesses and financial markets.

"All divisions, both in the US and internationally, drove increases in comp sales and customer transactions, which underscores the strength of our value proposition," CEO Ernie Herrman said in a statement.

TJX anticipates EPS of $0.97 to $1 in the ongoing quarter, shy of the $1.03 estimate from LSEG/Reuters.

The company guided for comparable sales growth of 2% to 3%, also below the analysts' estimate of a 2.9% increase.

Its first-quarter net sales were $13.11 billion, above the estimated $13.01 billion, and adjusted profit was $0.92 per share compared to the $0.91 estimate.

On Stocktwits, the retail sentiment was 'extremely bullish,' up from 'neutral' a week ago.

A user listening to the company's post-earnings conference call said, "Every analyst is starting Q (question) with a compliment."

TJX shares are up 8.5% this year, up to their last close.

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