US' TJX FY26 performance surpasses expectations with $60.4 bn sales

Net income for FY26 reached $5.5 billion, with diluted earnings per share (EPS) rising 14 per cent to $4.87 from $4.26 in FY25. Excluding a net benefit from litigation settlement and related expenses, adjusted diluted EPS increased 11 per cent to $4.73.

Profitability improved during the year. Pretax profit margin expanded to 12.1 per cent from 11.5 per cent in FY25, while adjusted pretax margin rose to 11.7 per cent from 11.5 per cent. Gross margin improved to 31.0 per cent from 30.6 per cent, aided partly by lower inventory shrink expense, while selling, general and administrative expenses (SG&A) expenses were broadly stable at 19.1 per cent of sales, The TJX said in a press release.

Divisional performance remained balanced, with full-fiscal comparable sales rising 4 per cent at Marmaxx (US), 5 per cent at HomeGoods, 7 per cent at TJX Canada and 4 per cent at TJX International. Net sales increased across all segments, led by Marmaxx at $36.6 billion and TJX International at $8 billion.

Inventory at year-end stood at $7.3 billion versus $6.4 billion in FY25, positioning the company to capitalise on merchandise availability and maintain fresh assortments across channels.

Ernie Herrman, CEO and president of The TJX Companies, Inc, stated: “I am extremely pleased with our excellent performance in 2025. Thanks to the collective efforts and sharp execution of our teams, we delivered above-plan results on both the top- and bottom-line. Annual sales surpassed $60 billion, marking a major milestone for our company. Full year comparable sales grew a very strong 5 per cent and overall profitability and earnings per share both increased significantly. We are pleased with the strong and consistent sales performance across all of our businesses, with each division delivering comp sales growth of 4 per cent or better for the year.”

Meanwhile, in the fourth quarter (Q4) of FY26, TJX generated net sales of $17.7 billion, up 9 per cent YoY, with consolidated comparable sales increasing 5 per cent. Net income reached $1.8 billion, while diluted EPS climbed 28 per cent to $1.58 compared with $1.23 in Q4 FY25. Adjusted diluted EPS rose 16 per cent to $1.43.

Q4 pretax profit margin improved significantly to 13.5 per cent from 11.6 per cent in the prior year, while adjusted pretax margin rose to 12.2 per cent. The gross margin increased to 30.9 per cent, supported by higher merchandise margin and expense leverage, partly offset by unfavourable inventory hedges.

SG&A expenses declined to 17.6 per cent of sales from 19.2 per cent a year earlier, reflecting operating leverage and cost discipline. Comparable sales growth was recorded across all divisions, including Marmaxx (+5 per cent), HomeGoods (+6 per cent), TJX Canada (+7 per cent) and TJX International (+4 per cent).

TJX maintained strong cash generation, producing $6.9 billion in operating cash flow during FY26 and ending the year with $6.2 billion in cash. The company returned $4.3 billion to shareholders through share repurchases and dividends, including $2.5 billion in buybacks and $1.8 billion in dividends.

For the fourth quarter alone, TJX generated $3.2 billion in operating cash flow and returned $1.26 billion to shareholders.

“We had an excellent fourth quarter, with sales, profitability, and earnings per share all well above our plan. Throughout the year, we stayed focused on our off-price fundamentals to bring customers great values, brands, and fashions as well as an exciting treasure-hunt shopping experience every day. As we begin 2026, the first quarter is off to a strong start and availability of quality merchandise continues to be outstanding. Long term, we are excited about the opportunities we see to keep growing our business and capture additional market share around the world for many years to come,” added Herrman.

Looking ahead, TJX expects consolidated comparable sales growth of 2-3 per cent in both the first quarter and full FY27. For the first quarter, pretax margin is projected at 10.3-10.4 per cent with diluted EPS of $0.97-0.99. For FY27, company forecasts pretax margin of 11.7-11.8 per cent and diluted EPS of $4.93-5.02, reflecting continued confidence in market share gains and long-term growth opportunities globally.

Fibre2Fashion News Desk (SG)