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TJX Companies Reports Q2 Financial Results
- Q2 consolidated comparable sales increased 4%, which was above the Company’s plan
- Q2 pretax profit margin of 11.4%, well above the Company’s plan
- Q2 diluted earnings per share of $1.10, up 15% and well above the Company’s plan
- Returned $1.0 billion to shareholders in Q2 through share repurchases and dividends
- Increases full year FY26 pretax profit margin and diluted earnings per share guidance
Framingham, MA — The TJX Companies announced sales and operating results for the second quarter ended August 2, 2025.
Net sales for the second quarter of Fiscal 2026 were $14.4 billion, an increase of 7% versus the second quarter of Fiscal 2025. Second quarter Fiscal 2026 consolidated comparable sales increased 4%. Net income for the second quarter of Fiscal 2026 was $1.2 billion and diluted earnings per share were $1.10, up 15% versus $.96 in the second quarter of Fiscal 2025.
For the first half of Fiscal 2026, net sales were $27.5 billion, an increase of 6% versus the first half of Fiscal 2025. First half Fiscal 2026 consolidated comparable sales increased 4%. Net income for the first half of Fiscal 2026 was $2.3 billion. First half Fiscal 2026 diluted earnings per share were $2.02, up 7% versus $1.89 in the first half of Fiscal 2025.
CEO and President Comments
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am extremely pleased with our second quarter performance. Sales, pretax profit margin, and earnings per share were all above our plan. As we have seen through so many different retail and economic environments, consumers were drawn to our excellent values and brands. Customer transactions were up at every division as we saw strong demand at each of our U.S. and international businesses. Our teams across the Company successfully executed our off-price business fundamentals to deliver an exciting treasure hunt of merchandise at great value to our customers, every day. With our strong second quarter profit results, we are raising our full-year guidance for both pretax profit margin and earnings per share. The third quarter is off to a strong start, and I am very confident in our position as we enter the second half of the year. Our teams are energized by the opportunities we see in the marketplace for excellent brands and fashions and our initiatives to keep attracting shoppers to our retail brands. Longer term, we are convinced that we have a long runway ahead to capture additional market share and continue our successful growth around the world.”
Comparable Sales by Division
The Company’s comparable sales by division for the second quarter of Fiscal 2026 and Fiscal 2025 were as follows:
|
|
Second Quarter |
|
|
|
FY2026 |
FY2025 |
|
|
|
|
|
Marmaxx (U.S.)2 |
+3% |
+5% |
|
HomeGoods (U.S.)3 |
+5% |
+2% |
|
TJX Canada |
+9% |
+2% |
|
TJX International (Europe & Australia)4 |
+5% |
+1% |
|
|
|
|
|
TJX |
+4% |
+4% |
|
1Comparable sales for FY2026 include e-commerce. 2Includes TJ Maxx, Marshalls, and Sierra stores as well as their e-commerce sites. 3Includes HomeGoods and Homesense stores. 4Includes TK Maxx and Homesense stores, as well as TK Maxx e-commerce sites in Europe. |
Net Sales by Division
The Company’s net sales by division for the second quarter of Fiscal 2026 and Fiscal 2025 were as follows:
|
|
Second Quarter Net Sales |
Second Quarter |
Second Quarter |
|
|
|
FY2026 |
FY2025 |
||
|
|
|
|
|
|
|
Marmaxx (U.S.)3 |
$8,841 |
$8,445 |
+5% |
N.A. |
|
HomeGoods (U.S.)4 |
$2,286 |
$2,101 |
+9% |
N.A. |
|
TJX Canada |
$1,381 |
$1,244 |
+11% |
+11% |
|
TJX International (Europe & Australia)5 |
$1,893 |
$1,678 |
+13% |
+7% |
|
|
|
|
|
|
|
TJX |
$14,401 |
$13,468 |
+7% |
+6% |
|
1Net sales in TJX Canada and TJX International include the impact of foreign currency. 2Reflects net sales adjusted for the impact of foreign currency; see Impact of Foreign Currency, below. 3Includes TJ Maxx, Marshalls, and Sierra stores as well as their e-commerce sites. 4Includes HomeGoods and Homesense stores. 5Includes TK Maxx and Homesense stores, as well as TK Maxx e-commerce sites in Europe. |
Margins
For the second quarter of Fiscal 2026, the Company’s pretax profit margin was 11.4%, well above the Company’s plan and 0.5 percentage points above last year’s second quarter pretax profit margin of 10.9%.
Gross profit margin for the second quarter of Fiscal 2026 was 30.7%, up 0.3 percentage points versus last year’s 30.4%, primarily due to favorable hedges. Merchandise margin was flat despite higher tariff costs versus last year.
Selling, general, and administrative (SG&A) costs as a percent of sales for the second quarter of Fiscal 2026 were 19.5%, a 0.3 percentage point decrease versus last year’s 19.8%. This was primarily driven by operational efficiencies as well as a benefit from the timing of certain expenses.
Net interest income negatively impacted second quarter Fiscal 2026 pretax profit margin by 0.1 percentage point versus the prior year.
The Company’s second quarter Fiscal 2026 pretax profit margin was above the high-end of its plan by 0.9 percentage points. This was due to a combination of items including lower-than-expected tariff costs, expense leverage on above-plan sales, and the timing of certain expenses, partially offset by higher incentive compensation accruals and contributions to TJX’s charitable foundations.
Inventory
Total inventories as of August 2, 2025 were $7.4 billion, compared to $6.5 billion at the end of the second quarter of Fiscal 2025. Consolidated inventories on a per-store basis as of August 2, 2025, including distribution centers, but excluding inventory in transit and the Company’s e-commerce sites, were up 10% on both a reported and constant currency basis versus last year. The Company’s inventory position reflects the excellent buying opportunities the Company saw in the marketplace during the second quarter. The Company is seeing outstanding availability of quality, branded merchandise and is very well-positioned to flow fresh assortments to its stores and online throughout the fall and holiday season. Inventory on a constant currency basis reflects inventory adjusted for the impact of foreign currency, if any, as described below.
Cash and Shareholder Distributions
For the second quarter of Fiscal 2026, the Company generated $1.8 billion of operating cash flow and ended the quarter with $4.6 billion of cash.
During the second quarter of Fiscal 2026, the Company returned a total of $1.0 billion to shareholders. The Company repurchased 4.1 million shares of TJX stock for a total of $515 million and paid $474 million in shareholder dividends.
During the first half of Fiscal 2026, the Company returned a total of $2.0 billion to shareholders. The Company repurchased 9.2 million shares of TJX stock for a total of $1.1 billion and paid $894 million in shareholder dividends.
The Company continues to expect to repurchase approximately $2.0 to $2.5 billion of TJX stock during the fiscal year ending January 31, 2026. The Company may adjust the amount purchased under this plan up or down depending on various factors. The Company remains committed to returning cash to its shareholders while continuing to invest in the business to support the near- and long-term growth of TJX.
Third Quarter and Full Year Fiscal 2026 Outlook
The Company’s third quarter and full year Fiscal 2026 guidance below assumes that the current level of tariffs on imports into the U.S. as of August 20, 2025 will stay in place for the remainder of the year. The Company’s guidance assumes that it can offset the significant pressure it expects from tariffs throughout Fiscal 2026.
For the third quarter of Fiscal 2026, the Company expects consolidated comparable sales to be up 2% to 3%. The Company is planning third quarter Fiscal 2026 pretax profit margin to be in the range of 12.0% to 12.1%, down 0.2 to 0.3 percentage points versus the prior year’s 12.3%. The Company is planning third quarter Fiscal 2026 diluted earnings per share to be in the range of $1.17 to $1.19, which would represent a 3% to 4% increase versus the prior year’s $1.14.
For the full year Fiscal 2026, the Company now expects consolidated comparable sales to be up 3%. The Company is increasing its outlook for pretax profit margin to be in the range of 11.4% to 11.5%, flat to down 0.1 percentage point versus the prior year’s 11.5%. The Company is also raising its diluted earnings per share outlook to be in the range of $4.52 to $4.57, which would represent a 6% to 7% increase over the prior year’s $4.26. The Company’s full year Fiscal 2026 diluted earnings per share guidance now reflects the second quarter’s above-plan results as well as a smaller negative impact from unfavorable foreign currency exchange rates versus the Company’s previous guidance.
Stores by Concept
During the fiscal quarter ended August 2, 2025, the Company increased its store count by 13 stores overall to a total of 5,134 stores and increased total square footage by 0.3% versus the prior quarter.
|
|
Store Locations1 |
Gross Square Feet |
||
|
|
Beginning |
End |
Beginning |
End |
|
|
|
|
|
|
|
In the U.S.: |
|
|
|
|
|
TJ Maxx |
1,338 |
1,340 |
36.1 |
36.2 |
|
Marshalls |
1,234 |
1,234 |
34.5 |
34.5 |
|
HomeGoods |
950 |
952 |
22.2 |
22.3 |
|
Sierra |
123 |
127 |
2.5 |
2.6 |
|
Homesense |
75 |
76 |
2.1 |
2.1 |
|
In Canada: |
|
|
|
|
|
Winners |
310 |
311 |
8.5 |
8.5 |
|
HomeSense |
161 |
161 |
3.8 |
3.8 |
|
Marshalls |
110 |
110 |
2.9 |
2.9 |
|
In Europe: |
|
|
|
|
|
TK Maxx |
662 |
664 |
18.3 |
18.3 |
|
Homesense |
74 |
74 |
1.4 |
1.4 |
|
In Australia: |
|
|
|
|
|
TK Maxx |
84 |
85 |
1.7 |
1.8 |
|
|
|
|
|
|
|
TJX |
5,121 |
5,134 |
134.0 |
134.4 |
|
1Store counts above include both banners within a combo or a superstore. |
||||
I
|
The TJX Companies, Inc. and Consolidated Subsidiaries |
||||||||
|
Financial Summary |
||||||||
|
(Unaudited) |
||||||||
|
(In Millions Except Per Share Amounts) |
||||||||
|
|
Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
||||||
|
|
August 2, |
August 3, |
August 2, |
August 3, |
||||
|
Net sales |
$ |
14,401 |
$ |
13,468 |
$ |
27,512 |
$ |
25,947 |
|
Cost of sales, including buying and occupancy costs |
|
9,976 |
|
9,380 |
|
19,222 |
|
18,119 |
|
Selling, general and administrative expenses |
|
2,805 |
|
2,666 |
|
5,354 |
|
5,066 |
|
Interest (income) expense, net |
|
(27) |
|
(46) |
|
(57) |
|
(96) |
|
Income before income taxes |
|
1,647 |
|
1,468 |
|
2,993 |
|
2,858 |
|
Provision for income taxes |
|
404 |
|
369 |
|
714 |
|
689 |
|
Net income |
$ |
1,243 |
$ |
1,099 |
$ |
2,279 |
$ |
2,169 |
|
Diluted earnings per share |
$ |
1.10 |
$ |
0.96 |
$ |
2.02 |
$ |
1.89 |
|
Cash dividends declared per share |
$ |
0.425 |
$ |
0.375 |
$ |
0.850 |
$ |
0.750 |
|
Weighted average common shares – diluted |
|
1,128 |
|
1,144 |
|
1,130 |
|
1,145 |
|
The TJX Companies, Inc. and Consolidated Subsidiaries |
||||
|
Condensed Balance Sheets |
||||
|
(Unaudited) |
||||
|
(In Millions) |
||||
|
|
August 2, |
August 3, |
||
|
Assets |
|
|
||
|
Current assets: |
|
|
||
|
Cash and cash equivalents |
$ |
4,639 |
$ |
5,250 |
|
Accounts receivable and other current assets |
|
1,267 |
|
1,170 |
|
Merchandise inventories |
|
7,372 |
|
6,470 |
|
Total current assets |
|
13,278 |
|
12,890 |
|
Net property at cost |
|
7,775 |
|
6,968 |
|
Operating lease right of use assets |
|
9,978 |
|
9,513 |
|
Goodwill |
|
95 |
|
95 |
|
Other assets |
|
1,759 |
|
1,089 |
|
Total assets |
$ |
32,885 |
$ |
30,555 |
|
Liabilities and shareholders’ equity |
|
|
||
|
Current liabilities: |
|
|
||
|
Accounts payable |
$ |
4,698 |
$ |
4,503 |
|
Accrued expenses and other current liabilities |
|
4,941 |
|
4,497 |
|
Current portion of operating lease liabilities |
|
1,669 |
|
1,621 |
|
Total current liabilities |
|
11,308 |
|
10,621 |
|
Other long-term liabilities |
|
1,042 |
|
960 |
|
Non-current deferred income taxes, net |
|
217 |
|
162 |
|
Long-term operating lease liabilities |
|
8,585 |
|
8,166 |
|
Long-term debt |
|
2,867 |
|
2,864 |
|
|
|
|
||
|
Shareholders’ equity |
|
8,866 |
|
7,782 |
|
Total liabilities and shareholders’ equity |
$ |
32,885 |
$ |
30,555 |
|
The TJX Companies, Inc. and Consolidated Subsidiaries |
||||
|
Condensed Statements of Cash Flows |
||||
|
(Unaudited) |
||||
|
(In Millions) |
||||
|
|
Twenty-Six Weeks Ended |
|||
|
|
August 2, |
August 3, |
||
|
Cash flows from operating activities: |
|
|
||
|
Net income |
$ |
2,279 |
$ |
2,169 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
|
Depreciation and amortization |
|
604 |
|
529 |
|
Deferred income tax provision |
|
71 |
|
43 |
|
Share-based compensation |
|
76 |
|
84 |
|
Changes in assets and liabilities: |
|
|
||
|
(Increase) in accounts receivable and other assets |
|
(25) |
|
(14) |
|
(Increase) in merchandise inventories |
|
(845) |
|
(512) |
|
(Increase) in income taxes recoverable |
|
(36) |
|
(54) |
|
Increase in accounts payable |
|
388 |
|
648 |
|
(Decrease) in accrued expenses and other liabilities |
|
(289) |
|
(449) |
|
(Decrease) in net operating lease liabilities |
|
(5) |
|
(11) |
|
Other, net |
|
(33) |
|
(67) |
|
Net cash provided by operating activities |
|
2,185 |
|
2,366 |
|
Cash flows from investing activities: |
|
|
||
|
Property additions |
|
(958) |
|
(982) |
|
Purchase of equity investments |
|
(5) |
|
— |
|
Purchases of investments |
|
(21) |
|
(23) |
|
Sales and maturities of investments |
|
15 |
|
15 |
|
Net cash (used in) investing activities |
|
(969) |
|
(990) |
|
Cash flows from financing activities: |
|
|
||
|
Payments for repurchase of common stock |
|
(1,144) |
|
(1,068) |
|
Cash dividends paid |
|
(898) |
|
(803) |
|
Proceeds from issuance of common stock |
|
104 |
|
191 |
|
Other |
|
(64) |
|
(42) |
|
Net cash (used in) financing activities |
|
(2,002) |
|
(1,722) |
|
Effect of exchange rate changes on cash |
|
90 |
|
(4) |
|
Net (decrease) in cash and cash equivalents |
|
(696) |
|
(350) |
|
Cash and cash equivalents at beginning of year |
|
5,335 |
|
5,600 |
|
Cash and cash equivalents at end of period |
$ |
4,639 |
$ |
5,250 |
|
The TJX Companies, Inc. and Consolidated Subsidiaries |
||||||||
|
Selected Information by Major Business Segment |
||||||||
|
(Unaudited) |
||||||||
|
(In Millions) |
||||||||
|
|
Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
||||||
|
|
August 2, |
August 3, |
August 2, |
August 3, |
||||
|
Net sales: |
|
|
|
|
||||
|
In the United States: |
|
|
|
|
||||
|
Marmaxx |
$ |
8,841 |
$ |
8,445 |
$ |
16,893 |
$ |
16,195 |
|
HomeGoods |
|
2,286 |
|
2,101 |
|
4,540 |
|
4,180 |
|
TJX Canada |
|
1,381 |
|
1,244 |
|
2,525 |
|
2,357 |
|
TJX International |
|
1,893 |
|
1,678 |
|
3,554 |
|
3,215 |
|
Total net sales |
$ |
14,401 |
$ |
13,468 |
$ |
27,512 |
$ |
25,947 |
|
Segment profit: |
|
|
|
|
||||
|
In the United States: |
|
|
|
|
||||
|
Marmaxx |
$ |
1,254 |
$ |
1,191 |
$ |
2,361 |
$ |
2,288 |
|
HomeGoods |
|
228 |
|
191 |
|
458 |
|
389 |
|
TJX Canada |
|
221 |
|
187 |
|
343 |
|
324 |
|
TJX International |
|
99 |
|
73 |
|
171 |
|
134 |
|
Total segment profit |
$ |
1,802 |
$ |
1,642 |
$ |
3,333 |
$ |
3,135 |
|
General corporate expense |
|
182 |
|
220 |
|
397 |
|
373 |
|
Interest (income) expense, net |
|
(27) |
|
(46) |
|
(57) |
|
(96) |
|
Income before income taxes |
$ |
1,647 |
$ |
1,468 |
$ |
2,993 |
$ |
2,858 |
The TJX Companies, Inc. and Consolidated Subsidiaries
Notes to Consolidated Condensed Statements
- During the second quarter ended August 2, 2025, the Company returned $1 billion to shareholders, repurchasing and retiring 4.1 million shares of its common stock at a cost of $515 million and paid $474 million in shareholder dividends. During the six months ended August 2, 2025, the Company returned $2 billion to shareholders, repurchasing and retiring 9.2 million shares of its common stock at a cost of $1.1 billion and paid $894 million in shareholder dividends. During the second quarter of Fiscal 2026, the Company completed the $1.1 billion that remained as of February 1, 2025 from the previously announced stock repurchase program. In February 2025, the Company announced that the Board of Directors had approved a new stock repurchase program that authorizes the repurchase of up to an additional $2.5 billion of TJX common stock from time to time. Under this program, TJX had approximately $2.4 billion available for repurchase as of August 2, 2025.
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