TJX COMPANIES INC /DE/
For the period ended Aug 2, 2025. Filed Aug 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 2, 2025 · Filed Aug 29, 2025
TJX$135.30-2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-03; filed 2025-05-30.
0000109198-25-000043
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-02; filed 2025-08-29.
0000109198-25-000054
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 120 current paragraphs.
62 unchanged; 39 reworded; 18 added; 6 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
The Thirteen Weeks (second quarter) and Twenty-Six Weeks (six months) Ended August 2, 2025
Current report
The Thirteen Weeks (second quarter) and Twenty-Six Weeks (six months) Ended August 3, 2024
Current report
–Diluted earnings per share for the second quarter of fiscal 2026 were $1.10 versus $0.96 in the second quarter of fiscal 2025.
Current report
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 69.3% for the second quarter of fiscal 2026, a decrease of 0.3 percentage points compared to 69.6% for the second quarter of fiscal 2025. The decrease in the cost of sales ratio, including buying and occupancy costs, for the second quarter of fiscal 2026 was attributable to the favorable year-over-year impact related to the mark-to-market adjustments on inventory and fuel hedges.
Current report
For both the second quarter and first six months of fiscal 2026, merchandise margin was flat despite the increased tariff costs.
Current report
SG&A expenses, as a percentage of net sales, was 19.5% for the second quarter of fiscal 2026, a decrease of 0.3 percentage points compared to 19.8% for the second quarter of fiscal 2025. The decrease in the SG&A ratio for the second quarter of fiscal 2026 was due to operational efficiencies in stores partially offset by incremental store wages.
Current report
On July 4, 2025, the One Big Beautiful Bill Act was signed into law, making permanent certain expiring provisions of the Tax Cuts and Jobs Act, including 100% accelerated depreciation deductions on qualified property and immediate expensing of domestic research and development costs, as well as modifying some of the international tax rules. These changes are not expected to have a material impact on the Company’s income tax provision and are expected to reduce the Company’s current year U.S. cash tax obligations.
Current report
The effective income tax rate was 24.5% for the second quarter of fiscal 2026 and 25.1% for the second quarter of fiscal 2025. The effective income tax rate was 23.9% for the first six months of fiscal 2026 and 24.1% for the first six months of fiscal 2025. The decrease in the effective tax rate for both the second quarter and first six months of fiscal 2026 was primarily due to a benefit from the acquisition of federal tax credits, partially offset by the decrease in excess tax benefit from share-based compensation.
Current report
Net income was $2.3 billion, or $2.02 per diluted share, and $2.2 billion, or $1.89 per diluted share, for the first six months of fiscal 2026 and fiscal 2025, respectively. Foreign currency had a neutral impact on diluted earnings per share for the first six months of fiscal 2026 and had a neutral impact on diluted earnings per share for the first six months of fiscal 2025.
Current report
Net sales for Marmaxx were $16.9 billion for the first six months of fiscal 2026, an increase of 4% compared to $16.2 billion for the first six months of fiscal 2025. This increase in the first six months reflects a 3% increase from comp sales and a 1% increase from non-comp sales.
Current report
Segment profit margin decreased to 14.0% for the first six months of fiscal 2026 compared to 14.1% for the first six months last year. The decrease in segment profit margin for the first six months of fiscal 2026 was primarily driven by an increase in occupancy costs and incremental store wages partially offset by operational efficiencies in stores.
Current report
Net sales for HomeGoods were $4.5 billion for the first six months of fiscal 2026, an increase of 9%, compared to $4.2 billion for the first six months of fiscal 2025. This increase in the first six months reflects a 5% increase from comp sales and a 4% increase from non-comp sales.
Current report
Segment profit margin increased to 10.1% for the first six months of fiscal 2026 compared to 9.3% for the same period last year. This increase in segment profit margin for the first six months of fiscal 2026 was primarily driven by lower supply chain costs and favorable merchandise margin. Merchandise margin reflects lower markdowns partially offset by lower markon and higher freight costs.
Current report
Net sales for TJX Canada were $1.4 billion for the second quarter of fiscal 2026, an increase of 11%, compared to $1.2 billion for the second quarter of fiscal 2025. This increase in the second quarter reflects a 9% increase in comp sales, a 2% increase in non-comp sales and a neutral foreign currency impact.
Current report
Segment profit margin increased to 16.0% for the second quarter of fiscal 2026 compared to 15.0% for the same period last year. This increase for the second quarter of fiscal 2026 was primarily driven by expense leverage on higher comp sales and operational efficiencies in supply chain and stores partially offset by incremental store wages.
Current report
Net sales for TJX International were $3.6 billion for the first six months of fiscal 2026, an increase of 11%, compared to $3.2 billion for the first six months of fiscal 2025. This increase in the first six months reflects a 5% increase in comp sales, a positive foreign currency impact of 4% and a 2% increase in non-comp sales.
Current report
The increase in comp sales for both the second quarter and first six months of fiscal 2026 was driven by an increase in customer transactions.
Current report
Segment profit margin increased to 4.8% for the first six months of fiscal 2026 compared to 4.2% for the same period last year. This increase for the first six months of fiscal 2026 was primarily due to lower administrative costs and favorable occupancy costs.
Removed paragraphs (6)
Previous report
The Thirteen Weeks (first quarter) Ended May 3, 2025
Previous report
The Thirteen Weeks (first quarter) Ended May 4, 2024
Previous report
–Diluted earnings per share for the first quarter of fiscal 2026 were $0.92 versus $0.93 in the first quarter of fiscal 2025.
Previous report
The increase in the SG&A ratio for the first quarter of fiscal 2026 was due to the year-over-year impact from an employee retention credit reserve release benefit last year and incremental store wage and payroll costs.
Previous report
The effective income tax rate was 23.0% for the first quarter of fiscal 2026 and 23.0% for the first quarter of fiscal 2025. There were no significant changes to our effective income tax rate for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025.
Previous report
The increase in comp sales for the first quarter was driven by an increase in customer transactions.
Reworded paragraphs (39)
Previous wording
–Net sales increased 5% to $13.1 billion for the first quarter of fiscal 2026 versus last year’s first quarter sales of $12.5 billion. As of May 3, 2025, both the number of stores in operation and the selling square footage increased 3% compared to the end of the first quarter of fiscal 2025.
Current wording
–Net sales increased 7% to $14.4 billion for the second quarter of fiscal 2026 versus last year’s second quarter sales of $13.5 billion. As of August 2, 2025, the number of stores in operation increased approximately 3% and the selling square footage increased approximately 2% compared to the end of the second quarter of fiscal 2025.
Previous wording
–Consolidated comp sales increased 3% for the first quarter of fiscal 2026. See Net Sales below for our definition of comp sales.
Current wording
–Consolidated comp sales increased 4% for the second quarter of fiscal 2026. See Net Sales below for our definition of comp sales.
Previous wording
–Pre-tax profit margin (the ratio of pre-tax income to net sales) for the first quarter of fiscal 2026 was 10.3%, a 0.8 percentage point decrease compared with 11.1% in the first quarter of fiscal 2025.
Current wording
–Pre-tax profit margin (the ratio of pre-tax income to net sales) for the second quarter of fiscal 2026 was 11.4%, a 0.5 percentage point increase compared with 10.9% in the second quarter of fiscal 2025.
Previous wording
–Our cost of sales, including buying and occupancy costs, ratio for the first quarter of fiscal 2026 was 70.5%, a 0.5 percentage point increase compared with 70.0% in the first quarter of fiscal 2025.
Current wording
–Our cost of sales, including buying and occupancy costs, ratio for the second quarter of fiscal 2026 was 69.3%, a 0.3 percentage point decrease compared with 69.6% in the second quarter of fiscal 2025.
Previous wording
–Our selling, general and administrative (“SG&A”) expense ratio for the first quarter of fiscal 2026 was 19.4%, a 0.2 percentage point increase compared with 19.2% in the first quarter of fiscal 2025.
Current wording
–Our selling, general and administrative (“SG&A”) expense ratio for the second quarter of fiscal 2026 was 19.5%, a 0.3 percentage point decrease compared with 19.8% in the second quarter of fiscal 2025.
Previous wording
–Our consolidated average per store inventories, including inventory on hand at our distribution centers (which excludes inventory in transit) and excluding our e-commerce sites, were up 7% at the end of the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. Starting in the first quarter of fiscal 2026, Sierra stores are included in the consolidated average per store inventories.
Current wording
–Our consolidated average per store inventories, including inventory on hand at our distribution centers (which excludes inventory in transit) and excluding our e-commerce sites, were up 10% at the end of the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025. Starting in the first quarter of fiscal 2026, Sierra stores are included in the consolidated average per store inventories.
Previous wording
–During the first quarter of fiscal 2026, we returned $1 billion to our shareholders through share repurchases and dividends.
Current wording
–During the second quarter of fiscal 2026, we returned $1 billion to our shareholders through share repurchases and dividends.
Previous wording
We continue to closely monitor changes in international trade relations, economic and monetary policies, or legislation and regulations including those related to tariffs on imports from China and other countries. The tariffs have led to significant volatility in the global economy, and the extent and duration of the tariffs and the resulting impact on general economic conditions and on our business are uncertain. Our buying organization’s ability to execute our merchandise sourcing model to offset the effects of the tariffs is a key factor. We are implementing and considering additional measures that seek to mitigate the impact of tariffs. However, the overall impact depends on a range of factors, including trade negotiations between the U.S. and other countries, responses of other countries, exceptions that could be granted, and cost of alternative sources of merchandise. It is possible that some of the actions we might take to adapt could increase risk, drive a modification of our operations that might be time-consuming or expensive, or possibly impact pricing on certain items, which could impact our business. Uncertainty remains regarding the continued impact on our direct imports, indirect imports, vendor and competitor pricing, consumer demand, tariff pass-throughs, and reciprocal or retaliatory tariffs.
Current wording
We continue to closely monitor changes in international trade relations, economic and monetary policies, and legislation and regulations including those related to tariffs on imports from China and other countries. While we have been, and believe we can continue to be, successful in mitigating tariff pressures, tariffs have led to significant volatility in the global economy. The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business continues to be uncertain. Our buying organization’s ability to execute our merchandise sourcing model to offset the effects of the tariffs is a key factor. We are continuing to implement and consider additional measures that seek to mitigate the impact of tariffs. However, the overall impact depends on a range of factors, including trade negotiations between the U.S. and other countries, responses of other countries, exceptions that could be granted, and cost of alternative sources of merchandise. It is possible that some of the actions we might take to adapt could increase risk, drive a modification of our operations that might be time-consuming or expensive, or possibly impact pricing on certain items, which could impact our business. Uncertainty remains regarding the continued impact on our direct imports, indirect imports, vendor and competitor pricing, consumer demand, tariff pass-throughs, and reciprocal or retaliatory tariffs.
Previous wording
Net sales for the quarter ended May 3, 2025 totaled $13.1 billion, a 5% increase versus first quarter fiscal 2025 net sales of $12.5 billion. This increase reflects a 3% increase in comp sales, a 2% increase from non-comp sales and a neutral impact from foreign currency. Net sales from our e-commerce sites combined amounted to approximately 2% of total sales for each of the first quarters of fiscal 2026 and fiscal 2025.
Current wording
Net sales for the quarter ended August 2, 2025 totaled $14.4 billion, a 7% increase versus second quarter fiscal 2025 net sales of $13.5 billion. This increase reflects a 4% increase in comp sales, a 2% increase from non-comp sales and a 1% positive impact from foreign currency. Net sales from our e-commerce sites combined amounted to approximately 2% of total sales for each of the second quarters of fiscal 2026 and fiscal 2025.
Previous wording
Comp sales increased 3% for the first quarter of fiscal 2026 and increased 3% for the first quarter of fiscal 2025. Both home comp sales growth (as defined below) and apparel comp sales growth (as defined below) generally performed in line with the overall comp sales increase for the first quarter of fiscal 2026. Comp sales for the first quarter of fiscal 2026 were driven by an increase in customer transactions.
Current wording
Comp sales increased 4% for both the second quarters of fiscal 2026 and fiscal 2025. Comp sales increased 4% and 3% for the first six months of fiscal 2026 and fiscal 2025, respectively. While both home comp sales growth (as defined below) and apparel comp sales growth (as defined below) were positive, home comp sales growth outperformed apparel comp sales growth for both the second quarter and first six months of fiscal 2026. Comp sales for both periods were primarily driven by an increase in customer transactions.
Previous wording
As of May 3, 2025, both our store count and selling square footage increased 3% compared to the end of the first quarter last year.
Current wording
As of August 2, 2025, our store count increased approximately 3% and selling square footage increased approximately 2% compared to the end of the second quarter last year.
Previous wording
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 70.5% for the first quarter of fiscal 2026, an increase of 0.5 percentage points compared to 70.0% for the first quarter of fiscal 2025.
Current wording
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 69.9% for the first six months of fiscal 2026, an increase of 0.1 percentage points compared to 69.8% for the first six months of fiscal 2025. The increase in the cost of sales ratio, including buying and occupancy costs, for the first six months of fiscal 2026 was due to increased occupancy costs.
Previous wording
SG&A expenses, as a percentage of net sales, was 19.4% for the first quarter of fiscal 2026, an increase of 0.2 percentage points compared to 19.2% for the first quarter of fiscal 2025.
Current wording
SG&A expenses, as a percentage of net sales, was 19.5% for the first six months of fiscal 2026, flat compared to the first six months of fiscal 2025.
Previous wording
Interest (income) expense, net decreased for the first quarter of fiscal 2026 compared to the same period in fiscal 2025, primarily due to a decrease in interest income driven by a decrease in prevailing rates and a lower average cash balance.
Current wording
Interest (income) expense, net decreased for both the second quarter of fiscal 2026 and first six months ended August 2, 2025 compared to the same periods in fiscal 2025, primarily due to a decrease in interest income driven by a decrease in prevailing rates and a lower average cash balance.
Previous wording
A number of countries have enacted legislation to implement the Organization for Economic Cooperation and Development’s 15% global minimum tax regime (Pillar Two) with effect from January 1, 2024. These changes did not have a material impact on our effective tax rate, results of operations or financial position for the first quarter of fiscal 2026 and are not expected to have a significant impact to the full fiscal year. We continue to evaluate the impacts of proposed and enacted legislation for the jurisdictions in which TJX operates.
Current wording
A number of countries have enacted legislation to implement the Organization for Economic Cooperation and Development’s 15% global minimum tax regime (Pillar Two) with effect from January 1, 2024. These changes did not have a material impact on our effective tax rate, results of operations or financial position for the second quarter of fiscal 2026 and are not expected to have a significant impact to the full fiscal year. We continue to evaluate the impacts of proposed and enacted legislation for the jurisdictions in which TJX operates.
Previous wording
Net income was $1.0 billion, or $0.92 per diluted share, and $1.1 billion, or $0.93 per diluted share, for the first quarter of fiscal 2026 and fiscal 2025, respectively. Foreign currency had a $0.02 negative impact on diluted earnings per share for the first quarter of fiscal 2026 and a $0.01 positive impact on diluted earnings per share for the first quarter of fiscal 2025.
Current wording
Net income was $1.2 billion, or $1.10 per diluted share, and $1.1 billion, or $0.96 per diluted share, for the second quarter of fiscal 2026 and fiscal 2025, respectively. Foreign currency had a $0.02 positive impact on diluted earnings per share for the second quarter of fiscal 2026 and a neutral impact on diluted earnings per share for the second quarter of fiscal 2025.
Previous wording
Net sales for Marmaxx were $8.1 billion for the first quarter of fiscal 2026, an increase of 4% compared to $7.8 billion for the first quarter of fiscal 2025. This increase in the first quarter reflects a 2% increase from comp sales and a 2% increase from non-comp sales.
Current wording
Net sales for Marmaxx were $8.8 billion for the second quarter of fiscal 2026, an increase of 5% compared to $8.4 billion for the second quarter of fiscal 2025. This increase in the second quarter reflects a 3% increase from comp sales and a 2% increase from non-comp sales.
Previous wording
For the first quarter, the increase in comp sales was driven by an increase in customer transactions and an increase in average basket. Both Marmaxx home and apparel comp sales growth generally performed in line with the overall comp sales increase for the first quarter of fiscal 2026. Geographically, comp sales growth was strongest in the West and South regions for the first quarter of fiscal 2026.
Current wording
For both the second quarter and first six months of fiscal 2026, the increase in comp sales was driven by an increase in average basket and an increase in customer transactions. While both Marmaxx home and apparel comp sales growth were positive, home comp sales growth outperformed apparel comp sales growth for both the second quarter and first six months of fiscal 2026. Geographically, comp sales growth was strongest in the South region for both the second quarter and first six months of fiscal 2026.
Previous wording
Segment profit margin decreased to 13.7% for the first quarter of fiscal 2026 compared to 14.2% for the same period last year. The decrease in segment profit margin for the first quarter of fiscal 2026 was primarily driven by expense deleverage on occupancy and administrative costs and the year-over-year impact from an employee retention credit reserve release benefit last year.
Current wording
Segment profit margin increased to 14.2% for the second quarter of fiscal 2026 compared to 14.1% for the same period last year. The increase in segment profit margin for the second quarter of fiscal 2026 was primarily driven by operational efficiencies in stores partially offset by an increase in occupancy costs and incremental store wages.
Previous wording
Our Marmaxx e-commerce sites, tjmaxx.com and marshalls.com, together with sierra.com, represented approximately 3% of Marmaxx’s net sales for the first quarter of fiscal 2026 and fiscal 2025, and did not have a significant impact on year-over-year segment margin comparisons.
Current wording
Our Marmaxx e-commerce sites, tjmaxx.com and marshalls.com, together with sierra.com, represented approximately 2% of Marmaxx’s net sales for both the second quarter and first six months of fiscal 2026 and fiscal 2025, and did not have a significant impact on year-over-year segment margin comparisons.
Previous wording
Net sales for HomeGoods were $2.3 billion for the first quarter of fiscal 2026, an increase of 8%, compared to $2.1 billion for the first quarter of fiscal 2025. This increase in the first quarter reflects a 4% increase from comp sales and a 4% increase from non-comp sales.
Current wording
Net sales for HomeGoods were $2.3 billion for the second quarter of fiscal 2026, an increase of 9%, compared to $2.1 billion for the second quarter of fiscal 2025. This increase in the second quarter reflects a 5% increase from comp sales and a 4% increase from non-comp sales.
Previous wording
For the first quarter of fiscal 2026, the increase in comp sales was driven by an increase in customer transactions. Geographically, comp sales growth was strongest in the West region for the first quarter of fiscal 2026.
Current wording
For both the second quarter and first six months of fiscal 2026, the increase in comp sales was driven by an increase in customer transactions. Geographically, comp sales growth was strongest in the South, Midwest and West regions for the second quarter of fiscal 2026 and in the West region for the first six months of fiscal 2026.
Previous wording
Segment profit margin increased to 10.2% for the first quarter of fiscal 2026 compared to 9.5% for the same period last year. This increase in segment profit margin for the first quarter of fiscal 2026 was primarily driven by lower supply chain costs, partially offset by the year-over-year impact from an employee retention credit reserve release benefit last year.
Current wording
Segment profit margin increased to 10.0% for the second quarter of fiscal 2026 compared to 9.1% for the same period last year. This increase in segment profit margin for the second quarter of fiscal 2026 was primarily driven by lower supply chain costs and favorable merchandise margin. Merchandise margin reflects lower markdowns partially offset by higher freight costs and lower markon.
Previous wording
Net sales for TJX Canada were $1.1 billion for the first quarter of fiscal 2026, an increase of 3%, compared to $1.1 billion for the first quarter of fiscal 2025. This increase in the first quarter reflects a 5% increase in comp sales, a 2% increase in non-comp sales, partially offset by a negative foreign currency impact of 4%.
Current wording
Net sales for TJX Canada were $2.5 billion for the first six months of fiscal 2026, an increase of 7%, compared to $2.4 billion for the first six months of fiscal 2025. This increase in the first six months reflects a 7% increase in comp sales, a 2% increase in non-comp sales, partially offset by a negative foreign currency impact of 2%.
Previous wording
The increase in comp sales for the first quarter of fiscal 2026 was driven by an increase in customer transactions.
Current wording
The increase in comp sales for both the second quarter and first six months of fiscal 2026 was driven by an increase in customer transactions.
Previous wording
Segment profit margin decreased to 10.7% for the first quarter of fiscal 2026 compared to 12.3% for the same period last year. This decrease for the first quarter of fiscal 2026 was primarily driven by lower merchandise margin and the unfavorable impact of transactional foreign exchange. Merchandise margin reflects higher markdowns and the negative impact of transactional foreign exchange on the cost of merchandise within markon.
Current wording
Segment profit margin decreased to 13.6% for the first six months of fiscal 2026 compared to 13.7% for the same period last year. This decrease for the first six months of fiscal 2026 was primarily driven by lower merchandise margin partially offset by expense leverage on higher comp sales. Merchandise margin reflects the negative impact of transactional foreign exchange on the cost of merchandise within markon and higher markdowns partially offset by lower freight costs.
Previous wording
Net sales for TJX International were $1.7 billion for the first quarter of fiscal 2026, an increase of 8%, compared to $1.5 billion for the first quarter of fiscal 2025. This increase in the first quarter reflects a 5% increase in comp sales, a 2% increase in non-comp sales and a positive foreign currency impact of 1%.
Current wording
Net sales for TJX International were $1.9 billion for the second quarter of fiscal 2026, an increase of 13%, compared to $1.7 billion for the second quarter of fiscal 2025. This increase in the second quarter reflects a positive foreign currency impact of 6%, a 5% increase in comp sales and a 2% increase in non-comp sales.
Previous wording
E-commerce sales represented approximately 4% of TJX International’s net sales for the first quarter of fiscal 2026 and fiscal 2025.
Current wording
E-commerce sales represented approximately 3% of TJX International’s net sales for both the second quarter and first six months of fiscal 2026 and fiscal 2025.
Previous wording
Segment profit margin increased to 4.3% for the first quarter of fiscal 2026 compared to 4.0% for the same period last year. This increase for the first quarter of fiscal 2026 was primarily due to lower administrative costs and favorable occupancy costs, partially offset by incremental store wage and payroll costs.
Current wording
Segment profit margin increased to 5.2% for the second quarter of fiscal 2026 compared to 4.4% for the same period last year. This increase for the second quarter of fiscal 2026 was primarily due to lower administrative costs, operational efficiencies in stores and favorable occupancy costs, partially offset by incremental store wages.
Previous wording
The increase in general corporate expense for the first quarter of fiscal 2026 was primarily driven by the unfavorable year-over-year impacts related to the mark-to-market adjustments on inventory hedges and fuel hedges.
Current wording
The decrease in general corporate expense for the second quarter of fiscal 2026 was primarily driven by the favorable year-over-year impacts related to the mark-to-market adjustments on inventory hedges and fuel hedges.
Previous wording
The increase in the cost of sales ratio, including buying and occupancy costs, for the first quarter of fiscal 2026 was attributable to the unfavorable year-over-year impact related to the mark-to-market adjustments on inventory hedges.
Current wording
The increase in general corporate expense for the first six months of fiscal 2026 was primarily driven by the unfavorable year-over-year impacts related to the mark-to-market adjustments on inventory hedges.
Previous wording
As of May 3, 2025, we held $4.3 billion in cash. Approximately $1.2 billion of our cash was held by our foreign subsidiaries with $748 million held in countries where we intend to indefinitely reinvest any undistributed earnings. We have provided for all applicable state and foreign withholding taxes on all undistributed earnings of our foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through May 3, 2025. If we repatriate cash from such subsidiaries, we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid.
Current wording
As of August 2, 2025, we held $4.6 billion in cash. Approximately $1.5 billion of our cash was held by our foreign subsidiaries with $904 million held in countries where we intend to indefinitely reinvest any undistributed earnings. We have provided for all applicable state and foreign withholding taxes on all undistributed earnings of our foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through August 2, 2025. If we repatriate cash from such subsidiaries, we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid.
Previous wording
Operating activities resulted in net cash inflows of $394 million for the three months ended May 3, 2025 and $737 million for the three months ended May 4, 2024.
Current wording
Operating activities resulted in net cash inflows of $2.2 billion for the six months ended August 2, 2025 and $2.4 billion for the six months ended August 3, 2024.
Previous wording
Operating cash flows decreased $343 million compared to fiscal 2025 primarily due to the change in merchandise inventories net of accounts payable.
Current wording
Operating cash flows decreased $181 million compared to fiscal 2025 primarily due to the change in merchandise inventories net of accounts payable, partially offset by an increase in net income and income taxes payable.
Previous wording
Investing activities resulted in net cash outflows of $503 million for the three months ended May 3, 2025 and $427 million for the three months ended May 4, 2024. The cash outflows for both periods were driven by capital expenditures.
Current wording
Investing activities resulted in net cash outflows of $969 million for the six months ended August 2, 2025 and $990 million for the six months ended August 3, 2024. The cash outflows for both periods were driven by capital expenditures.
Previous wording
Capital expenditures in the first three months of fiscal 2026 primarily reflected store improvements and renovations, investments in our new stores, as well as investments in our distribution centers and offices, including information technology. We anticipate that capital spending for the full fiscal year 2026 will be approximately $2.1 billion to $2.2 billion.
Current wording
Capital expenditures in the first six months of fiscal 2026 primarily reflected store improvements and renovations, investments in our new stores, as well as investments in our distribution centers and offices, including information technology. We anticipate that capital spending for the full fiscal year 2026 will be approximately $2.1 billion to $2.2 billion.
Previous wording
Financing activities resulted in net cash outflows of $1 billion for the first three months of fiscal 2026 and $840 million for the first three months of fiscal 2025. The cash outflows for both periods were primarily driven by equity repurchases and dividend payments.
Current wording
Financing activities resulted in net cash outflows of $2 billion for the first six months of fiscal 2026 and $1.7 billion for the first six months of fiscal 2025. The cash outflows for both periods were primarily driven by equity repurchases and dividend payments.
Previous wording
Under our stock repurchase programs, we paid $613 million to repurchase and retire 5.1 million shares of our stock in the first three months of fiscal 2026. As of May 3, 2025, approximately $3 billion remained available under our existing stock repurchase programs. We paid $509 million to repurchase and retire 5.3 million shares of our stock in the first three months of fiscal 2025. We currently plan to repurchase approximately $2 billion to $2.5 billion of stock under our stock repurchase programs in fiscal 2026. For further information regarding equity repurchases, see Note D – Capital Stock and Earnings Per Share of Notes to Consolidated Financial Statements.
Current wording
Under our stock repurchase programs, we paid $1.1 billion to repurchase and retire 9.2 million shares of our stock in the first six months of fiscal 2026. During the second quarter of fiscal 2026, the Company completed stock repurchases representing all of the $1.1 billion that remained as of February 1, 2025 from the previously announced stock repurchase program. As of August 2, 2025, approximately $2.4 billion remained available under our existing stock repurchase programs. We paid $1.1 billion to repurchase and retire 10.4 million shares of our stock in the first six months of fiscal 2025. We currently plan to repurchase approximately $2 billion to $2.5 billion of stock under our stock repurchase programs in fiscal 2026. For further information regarding equity repurchases, see Note D – Capital Stock and Earnings Per Share of Notes to Consolidated Financial Statements.
Previous wording
We declared quarterly dividends on our common stock of $0.425 per share for the first quarter of fiscal 2026 and $0.375 per share for the first quarter of fiscal 2025. Cash payments for dividends on our common stock totaled $424 million for the first three months of fiscal 2026 and $380 million for the first three months of fiscal 2025.
Current wording
We declared quarterly dividends on our common stock of $0.425 per share for each of the quarters in the first six months of fiscal 2026 and $0.375 per share for each of the quarters in the first six months of fiscal 2025. Cash payments for dividends on our common stock totaled $898 million for the first six months of fiscal 2026 and $803 million for the first six months of fiscal 2025.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net sales for the six months ended August 2, 2025 totaled $27.5 billion, a 6% increase versus the first six months fiscal 2025 net sales of $25.9 billion. This increase reflects a 4% increase in comp sales, a 2% increase from non-comp sales and a neutral impact from foreign currency. Net sales from our e-commerce sites combined amounted to approximately 2% of total sales for each of the first six months of fiscal 2026 and fiscal 2025.