Strong Third Quarter Performance
The TJX Companies, Inc. (NYSE: TJX) reported robust third-quarter results for Fiscal Year 2026, significantly surpassing market expectations. The company, a leader in off-price apparel and home fashions, demonstrated strong financial performance, leading to an upward revision of its full-year guidance.
In the third quarter of Fiscal Year 2026, The TJX Companies, Inc. reported net sales of $15.1 billion, marking a 7% increase compared to the same period in the previous year. The company’s earnings per share (EPS) stood at $1.28, surpassing the anticipated EPS of $1.23. This performance also exceeded the company’s internal expectations, with a 12% increase in EPS from the previous year. The robust sales growth was driven by a 5% increase in consolidated comparable sales, indicating strong consumer demand across all divisions.
Notably, the Marmaxx division in the U.S. saw a comparable sales increase of 6%, while HomeGoods reported a 5% rise. Internationally, TJX Canada and TJX International (Europe and Australia) recorded comparable sales growth of 8% and 3%, respectively. This widespread growth across divisions highlights the company’s effective execution of its off-price business model and its ability to attract value-conscious shoppers globally.
In addition to sales growth, TJX achieved a pretax profit margin of 12.7%, which was significantly above the company’s plan and 0.4 percentage points higher than the previous year’s third quarter. This improvement was attributed to a higher merchandise margin and expense leverage on sales. Despite an increase in selling, general, and administrative expenses due to higher store wages and incentive compensation accruals, the company’s overall financial performance remained strong, underscoring its operational efficiency.
Raised Full-Year Guidance Reflects Continued Momentum
Following its impressive third-quarter performance, TJX Companies, Inc. has raised its full-year Fiscal 2026 guidance, reflecting confidence in its continued growth trajectory. The company now expects consolidated comparable sales for the full year to increase by 4%, up from previous estimates. Additionally, the pretax profit margin outlook has been raised to 11.6%, a 0.1 percentage point increase from the prior year’s 11.5%. The company also anticipates diluted earnings per share to be in the range of $4.63 to $4.66, representing a 9% increase over the previous year’s EPS of $4.26.
For the fourth quarter of Fiscal 2026, TJX projects consolidated comparable sales growth of 2% to 3% and a pretax profit margin ranging from 11.7% to 11.8%. The anticipated EPS for the fourth quarter is expected to be between $1.33 and $1.36. These projections are based on the assumption that current tariff levels on U.S. imports will remain unchanged for the rest of the year.
TJX’s leadership expressed enthusiasm about the strong start to the fourth quarter, citing outstanding merchandise availability and exciting market deals. The company is well-positioned as a gifting destination for the holiday season, offering fresh assortments of high-quality brands at competitive prices. With its robust value proposition and ongoing investments in growth, TJX is poised to capture additional market share and expand its global footprint, reinforcing its status as a leader in the off-price retail sector.