Parent co. of TJ Maxx, Marshalls brushes off tariff concerns with ‘plenty of merchandise’
By Lexy Lebsack • May 23, 2025 •
Ivy Liu
This story was originally published on sister site, Glossy.
TJX, parent company to off-price leaders like TJ Maxx and Marshalls, reported 3% sales growth during its Q1 fiscal 2026 meeting on Wednesday.
“The availability of merchandise we are seeing is outstanding, and we are in a great position to take advantage of the plentiful opportunities that the marketplace is offering,” Ernie Herrman, CEO and president of The TJX Companies, said during the call. “We are confident in our ability to navigate the current tariff and macro environment in the short term. Importantly, our vision for long-term growth, profitability and market share opportunities remains the same.”
TJX operates across nine countries with retailers TJ Maxx, Marshalls, Home Goods, Sierra, Winners, Homesense and TK Maxx in Europe.
The company’s Q1 2026 ended May 3. During the quarter, its consolidated comparable sales increased 3%, driven by customer transactions. Its full-year outlook remains unchanged: between $58.1 billion and $58.6 billion in sales this year. As previously reported, TJX grew 4% to reach $56.4 billion in sales for its fiscal 2025.
According to TJX execs, the off-price category will continue to thrive amid uncertain economic conditions, which it believes will last into 2026. “We’re making the assumption that the current level of tariffs on imports into the U.S. from China and other countries will stay in place for the remainder of the year,” CEO Herrman said. “We are convinced that we will have an opportunity to gain market share if more consumers seek out value in the current environment.”
Arround 90% of TJX goods have already been imported into the country of sale by brands, distributors and other middlemen. That means any applicable tariffs have been paid before TJX buys the goods.
Direct imports from China are a very small percentage of TJX’s business. In November, Herrman said that the company does not anticipate feeling the economic pinch. On Wednesday, he echoed the sentiment, despite the company’s small Q1 losses from imported merchandise that it had already committed to, which accounts for about 10% of its stock.
“Our team of over 1,300 buyers source goods from an ever changing universe of over 21,000 vendors from more than 100 countries around the world,” Herrman said. “We have a global buying infrastructure and supply chain that has been in place for multiple decades.”
On Wednesday’s call, Herrman expressed a noticeable shift in vendor relations. “We’re continuing to be more important to the vendors,” he said. “They see us as probably one of the more consistent retail outlets. … I only see those relationships becoming stronger.”
Q1 saw growth across several sectors for the company including the home category, which encompasses beauty and personal care, for which the company has expanded over the past few years.
As previously reported by Glossy, the off-price beauty and wellness categories continue to be a successful part of TJX’s merchandising strategy, with mass, prestige and luxury brands quietly selling into the channel at 30-70% off MSRP. For example, brands like Laneige, Clinique, Kate Somerville, Laura Mercier, Murad, CosRX, Coola, Philosophy, St. Tropez, It Cosmetics, Clarins, Shiseido, Peter Thomas Roth, Kopari, Anastasia Beverly Hills and NARS were spotted in TJX stores in Los Angeles. Glossy also saw fragrances from Byredo, Calvin Klein, Ariana Grande, Viktor&Rolf, Versace and Moschino at TJX locations.
Other bright spots were U.S. e-commerce sales and in-store sales in TK Maxx stores in Australia and Europe. Both saw growth, according to CFO John Klinger.
“We are in an excellent position to continue to invest in the growth of our company while simultaneously returning significant cash to our shareholders,” Klinger said.
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