TJX COMPANIES INC /DE/
For the period ended May 2, 2026. Filed May 29, 2026.
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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.
May 2, 2026 · Filed May 29, 2026
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 2025-11-01; filed 2025-12-02.
0000109198-25-000061
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-05-02; filed 2026-05-29.
0000109198-26-000034
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 120 previous paragraphs and 113 current paragraphs.
57 unchanged; 39 reworded; 11 added; 22 removed; 2 previous and 6 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 (11)
Current report
The Thirteen Weeks (first quarter) Ended May 2, 2026
Current report
The Thirteen Weeks (first quarter) Ended May 3, 2025
Current report
–Diluted earnings per share for the first quarter of fiscal 2027 were $1.19 versus $0.92 in the first quarter of fiscal 2026.
Current report
In February 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). We estimate we have paid approximately $490 million in IEEPA related tariffs. U.S. Customs and Border Patrol (“CBP”) has established a phased administrative process for submitting refund claims for certain IEEPA tariffs. However, the amount, timing and likelihood of any refund recovery remain uncertain. The amount of any refunds, if received, may not equal the full amount of IEEPA related tariffs paid, and any refunds remain subject to further legal, regulatory or administrative developments.
Current report
As of May 2, 2026, we have not recorded a receivable for any potential refunds and continue to monitor ongoing legal, administrative and regulatory processes. We will recognize a receivable and associated income if the right to receive such amounts becomes realized or realizable in accordance with ASC 450, Contingencies. Subsequent to the end of the first quarter of fiscal 2027, we filed for refunds that we believe are eligible under phase 1 of the CBP process and as of May 29, 2026 have received an immaterial amount in refunds.
Current report
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 68.7% for the first quarter of fiscal 2027, a decrease of 1.8 percentage points compared to 70.5% for the first quarter of fiscal 2026.
Current report
The decrease in the cost of sales ratio, including buying and occupancy costs, for the first quarter of fiscal 2027 was driven by favorable merchandise margin due to higher markon, the favorable year-over-year impact related to the mark-to-market adjustments on inventory and fuel hedges and expense leverage on higher comp sales.
Current report
Segment profit margin increased to 11.7% for the first quarter of fiscal 2027 compared to 10.7% for the same period last year. This increase for the first quarter of fiscal 2027 was primarily driven by expense leverage on higher comp sales and the year-over-year benefit from unfavorable transactional foreign exchange last year.
Current report
The decrease in general corporate expense for the first quarter of fiscal 2027 was primarily driven by the favorable year-over-year impact related to the mark-to-market adjustments on inventory and fuel hedge, partially offset by higher incentive compensation costs.
Current report
Operating cash flows increased $725 million compared to fiscal 2026 primarily due to a decrease of prepaid expenses and other current assets related to the receipt of the credit card interchange fees settlement and an increase in net income.
Current report
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Removed paragraphs (22)
Previous report
The Thirteen Weeks (third quarter) and Thirty-Nine Weeks (nine months) Ended November 1, 2025
Previous report
The Thirteen Weeks (third quarter) and Thirty-Nine Weeks (nine months) Ended November 2, 2024
Previous report
–Diluted earnings per share for the third quarter of fiscal 2026 were $1.28 versus $1.14 in the third quarter of fiscal 2025.
Previous report
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 67.4% for the third quarter of fiscal 2026, a decrease of 1.0 percentage points compared to 68.4% for the third quarter of fiscal 2025. The decrease in the cost of sales ratio, including buying and occupancy costs, for the third quarter of fiscal 2026 was attributable to favorable merchandise margin, lower supply chain costs as a result of a higher average ticket and expense leverage on higher comp sales. Merchandise margin reflects lower freight costs, favorable markon and lower shrink accrual rates in the current year.
Previous report
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 69.0% for the first nine months of fiscal 2026, a decrease of 0.3 percentage points compared to 69.3% for the first nine months of fiscal 2025. The decrease in the cost of sales ratio, including buying and occupancy costs, for the first nine months of fiscal 2026 was due to favorable merchandise margin, which reflects lower shrink accrual rates in the current year.
Previous report
SG&A expenses, as a percentage of net sales, was 20.1% for the third quarter of fiscal 2026, an increase of 0.6 percentage points compared to 19.5% for the third quarter of fiscal 2025. The increase in the SG&A ratio for the third quarter of fiscal 2026 was due to incremental store wage and payroll costs, a contribution to our U.S. charitable foundation and higher incentive compensation costs.
Previous report
Net income was $3.7 billion, or $3.30 per diluted share, and $3.5 billion, or $3.03 per diluted share, for the first nine months of fiscal 2026 and fiscal 2025, respectively. Foreign currency had a $0.01 positive impact on diluted earnings per share for both the first nine months of fiscal 2026 and the first nine months of fiscal 2025.
Previous report
Net sales for Marmaxx were $25.9 billion for the first nine months of fiscal 2026, an increase of 5% compared to $24.6 billion for the first nine months of fiscal 2025. This increase in the first nine months reflects a 4% increase from comp sales and a 1% increase from non-comp sales.
Previous report
Segment profit margin increased to 14.9% for the third quarter of fiscal 2026 compared to 14.3% for the same period last year. The increase in segment profit margin for the third quarter of fiscal 2026 was primarily driven by favorable merchandise margin and expense leverage on higher comp sales, partially offset by incremental store wage and payroll costs. Merchandise margin reflects lower freight costs and lower shrink accrual rates in the current year.
Previous report
Segment profit margin increased to 14.3% for the first nine months of fiscal 2026 compared to 14.2% for the first nine months last year. The increase in segment profit margin for the first nine months of fiscal 2026 was primarily driven by favorable merchandise margin partially offset by incremental store wage and payroll costs and higher incentive compensation costs. Merchandise margin reflects lower shrink accrual rates in the current year.
Previous report
Net sales for HomeGoods were $7.1 billion for the first nine months of fiscal 2026, an increase of 8%, compared to $6.5 billion for the first nine months of fiscal 2025. This increase in the first nine months reflects a 5% increase from comp sales and a 3% increase from non-comp sales.
Previous report
Segment profit margin increased to 11.3% for the first nine months of fiscal 2026 compared to 10.4% for the same period last year. This increase in segment profit margin for the first nine months of fiscal 2026 was driven by favorable merchandise margin and expense leverage on higher comp sales. Merchandise margin reflects lower markdowns and lower freight costs.
Previous report
Net sales for TJX Canada were $1.5 billion for the third quarter of fiscal 2026, an increase of 8%, compared to $1.4 billion for the third quarter of fiscal 2025. This increase in the third quarter reflects a 8% increase in comp sales, a 2% increase in non-comp sales, partially offset by a negative foreign currency impact of 2%.
Previous report
Net sales for TJX Canada were $4 billion for the first nine months of fiscal 2026, an increase of 7%, compared to $3.7 billion for the first nine months of fiscal 2025. This increase in the first nine months reflects a 7% increase in comp sales, a 3% increase in non-comp sales, partially offset by a negative foreign currency impact of 3%.
Previous report
The increase in comp sales for both the third quarter and first nine months of fiscal 2026 was driven by an increase in customer transactions.
Previous report
Segment profit margin decreased to 14.1% for the first nine months of fiscal 2026 compared to 14.3% for the same period last year. This decrease for the first nine months of fiscal 2026 was primarily driven by lower merchandise margin, capitalized inventory costs and incremental store wage and payroll costs. Merchandise margin reflects lower markon which includes the negative impact of transactional foreign exchange on the cost of merchandise partially offset by lower freight costs. These costs were partially offset by expense leverage on higher comp sales.
Previous report
For both periods presented, capitalized inventory costs reflect a greater portion of our buying and distribution costs being expensed in the current year compared to the respective periods in the prior year.
Previous report
The increase in comp sales for both the third quarter and first nine months of fiscal 2026 was driven by an increase in customer transactions.
Previous report
Segment profit margin increased to 6.4% for the first nine months of fiscal 2026 compared to 5.3% for the same period last year. This increase for the first nine months of fiscal 2026 was primarily due to higher merchandise margin, lower administrative costs and favorable store occupancy costs. Merchandise margin reflects higher markon and lower markdowns, partially offset by higher freight costs.
Previous report
The increase in general corporate expense for both the third quarter of fiscal 2026 and first nine months of fiscal 2026 was primarily driven by higher other administrative costs, contributions to our charitable foundations and incentive compensation costs.
Previous report
Operating cash flows increased $305 million compared to fiscal 2025 primarily due to an increase in net income, timing of income taxes payable and an increase in accrued expenses reflecting higher incentive compensation costs. This was partially offset by an increase in merchandise inventories.
Previous report
FORWARD-LOOKING STATEMENTS
Reworded paragraphs (39)
Previous wording
We are the leading off-price apparel and home fashions retailer in the U.S. and worldwide. Our mission is to deliver great value to our customers every day. We do this by selling a rapidly changing assortment of apparel, home fashions and other merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty and major online retailers) regular prices on comparable merchandise, every day through our storesand six e-commerce sites. We operate nearly 5,200 stores through our four segments: in the U.S., Marmaxx (which operates TJ Maxx, Marshalls, tjmaxx.com and marshalls.com) and HomeGoods (which operates HomeGoods and Homesense); TJX Canada (which operates Winners, HomeSense and Marshalls in Canada); and TJX International (which operates TK Maxx, Homesense, tkmaxx.com, tkmaxx.de, and tkmaxx.at in Europe, and TK Maxx in Australia). In addition to our four segments, Sierra operates retail stores and sierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
Current wording
We are the leading off-price apparel and home fashions retailer in the U.S. and worldwide. Our mission is to deliver great value to our customers every day. We do this by selling a rapidly changing assortment of apparel, home fashions and other merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty and major online retailers) regular prices on comparable merchandise, every day through our storesand six e-commerce sites. We operate over 5,200 stores through our four segments: in the U.S., Marmaxx (which operates TJ Maxx, Marshalls, tjmaxx.com and marshalls.com) and HomeGoods (which operates HomeGoods and Homesense); TJX Canada (which operates Winners, HomeSense and Marshalls in Canada); and TJX International (which operates TK Maxx, Homesense, tkmaxx.com, tkmaxx.de, and tkmaxx.at in Europe, and TK Maxx in Australia). In addition to our four segments, Sierra operates retail stores and sierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
Previous wording
–Net sales increased 7% to $15.1 billion for the third quarter of fiscal 2026 versus last year’s third quarter sales of $14.1 billion. As of November 1, 2025, the number of stores in operation increased approximately 3% and the selling square footage increased approximately 2% compared to the end of the third quarter of fiscal 2025.
Current wording
–Net sales increased 9% to $14.3 billion for the first quarter of fiscal 2027 versus last year’s first quarter sales of $13.1 billion. As of May 2, 2026, both the number of stores in operation and the selling square footage increased approximately 3% compared to the end of the first quarter of fiscal 2026.
Previous wording
–Consolidated comp sales increased 5% for the third quarter of fiscal 2026. See Net Sales below for our definition of comp sales.
Current wording
–Consolidated comp sales increased 6% for the first quarter of fiscal 2027. 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 third quarter of fiscal 2026 was 12.7%, a 0.4 percentage point increase compared with 12.3% in the third quarter of fiscal 2025.
Current wording
–Pre-tax profit margin (the ratio of pre-tax income to net sales) for the first quarter of fiscal 2027 was 12.0%, a 1.7 percentage point increase compared with 10.3% in the first quarter of fiscal 2026.
Previous wording
–Our cost of sales, including buying and occupancy costs, ratio for the third quarter of fiscal 2026 was 67.4%, a 1.0 percentage point decrease compared with 68.4% in the third quarter of fiscal 2025.
Current wording
–Our cost of sales, including buying and occupancy costs, ratio for the first quarter of fiscal 2027 was 68.7%, a 1.8 percentage point decrease compared with 70.5% in the first quarter of fiscal 2026.
Previous wording
–Our selling, general and administrative (“SG&A”) expense ratio for the third quarter of fiscal 2026 was 20.1%, a 0.6 percentage point increase compared with 19.5% in the third quarter of fiscal 2025.
Current wording
–Our selling, general and administrative (“SG&A”) expense ratio for the first quarter of fiscal 2027 was 19.5%, a 0.1 percentage point increase compared with 19.4% in the first quarter of fiscal 2026.
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 8% at the end of the third quarter of fiscal 2026 compared to the third 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 7% at the end of the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026.
Previous wording
–During the third quarter of fiscal 2026, we returned $1.1 billion to our shareholders through share repurchases and dividends.
Current wording
–During the first quarter of fiscal 2027, we returned $1.1 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, 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.
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. We are continuing to implement and consider additional measures that seek to mitigate the impact of tariffs.
Previous wording
Net sales for the quarter ended November 1, 2025 totaled $15.1 billion, a 7% increase versus third quarter fiscal 2025 net sales of $14.1 billion. This increase reflects a 5% 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 third quarters of fiscal 2026 and fiscal 2025.
Current wording
Net sales for the quarter ended May 2, 2026 totaled $14.3 billion, a 9% increase versus first quarter fiscal 2026 net sales of $13.1 billion. This increase reflects a 6% 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 first quarters of fiscal 2027 and fiscal 2026.
Previous wording
Comp sales increased 5% and 3% for the third quarters of fiscal 2026 and fiscal 2025, respectively. Comp sales increased 4% and 3% for the first nine months of fiscal 2026 and fiscal 2025, respectively. Both apparel comp sales growth (as defined below) and home comp sales growth (as defined below) performed in line with comp sales growth for both the third quarter and first nine months of fiscal 2026. Comp sales for the third quarter of fiscal 2026 were driven by a higher average basket and an increase in customer transactions. Comp sales for the first nine months of fiscal 2026 were primarily driven by an increase in customer transactions.
Current wording
Comp sales increased 6% and 3% for the first quarter of fiscal 2027 and fiscal 2026, respectively. Both apparel comp sales growth (as defined below) and home comp sales growth (as defined below) performed in line with comp sales growth for the first quarter of fiscal 2027. Comp sales for the first quarter of fiscal 2027 were driven by a higher average basket and an increase in customer transactions.
Previous wording
As of November 1, 2025, our store count increased approximately 3% and selling square footage increased approximately 2% compared to the end of the third quarter last year.
Current wording
As of May 2, 2026, both our store count and selling square footage increased approximately 3% compared to the end of the first quarter last year.
Previous wording
We define comparable sales, or comp sales, to be sales of stores and e-commerce sites that have been in operation for all or a portion of two consecutive fiscal years, or, in other words, stores or e-commerce sites that are starting their third fiscal year of operation. In any given fiscal year, we calculate comp sales on a 52-week basis by comparing the current and prior year weekly periods that are most closely aligned. Relocated stores and stores that have changed in size are generally classified in the same way as the original store, and we believe that the impact of these stores on the consolidated comp sales percentage is immaterial. Starting in fiscal 2026, sales from e-commerce sites are included in comp sales, and the impact of such sales on the consolidated comp sales percentage is immaterial.
Current wording
We define comparable sales, or comp sales, to be sales of stores and e-commerce sites that have been in operation for all or a portion of two consecutive fiscal years, or, in other words, stores or e-commerce sites that are starting their third fiscal year of operation. In any given fiscal year, we calculate comp sales on a 52-week basis by comparing the current and prior year weekly periods that are most closely aligned. Relocated stores and stores that have changed in size are generally classified in the same way as the original store, and we believe that the impact of these stores on the consolidated comp sales percentage is immaterial.
Previous wording
SG&A expenses, as a percentage of net sales, was 19.7% for the first nine months of fiscal 2026, an increase of 0.2 percentage points compared to 19.5% for the first nine months of fiscal 2025. The increase in the SG&A ratio for the first nine months of fiscal 2026 was due to incremental store wage and payroll costs and contributions to our charitable foundations.
Current wording
SG&A expenses, as a percentage of net sales, was 19.5% for the first quarter of fiscal 2027, an increase of 0.1 percentage points compared to 19.4% for the first quarter of fiscal 2026.
Previous wording
Interest (income) expense, net decreased for both the third quarter and first nine months of fiscal 2026 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.
Current wording
Interest (income) expense, net increased for the first quarter of fiscal 2027 compared to the same period in fiscal 2026, primarily due to an increase in interest income driven by a higher average cash balance, partially offset by a decrease in prevailing rates.
Previous wording
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 have not had a material impact for either the third quarter or the first nine months of fiscal 2026 and are not expected to have a material impact on the Company’s income tax provision. We expect these changes to reduce the Company’s current year U.S. cash tax obligations.
Current wording
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 have not had a material impact on our income tax provision for the first quarter of fiscal 2027, and we do not expect them to have a material impact on our income tax provision for the fiscal year.
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 third 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. A comprehensive Side-by-Side Package was released in January 2026, introducing additional safe harbors and options for companies headquartered in jurisdictions with a qualified Side-by-Side regime. Member countries must enact local legislation or update existing regulations to adopt and incorporate the Pillar Two Side-by-Side Package. We continue to evaluate the impacts of proposed and enacted legislation for the jurisdictions in which we operate.
Previous wording
The effective income tax rate was 24.7% for the third quarter of fiscal 2026 and 25.3% for the third quarter of fiscal 2025. The effective income tax rate was 24.2% for the first nine months of fiscal 2026 and 24.6% for the first nine months of fiscal 2025. The decrease in the effective tax rate for both the third quarter and first nine months of fiscal 2026 was primarily due to the increase in an excess tax benefit from share-based compensation and a benefit from the acquisition of federal tax credits, partially offset by incremental taxes related to international operations.
Current wording
The effective income tax rate was 22.6% for the first quarter of fiscal 2027 and 23.0% for the first quarter of fiscal 2026. The decrease in the effective tax rate for the first quarter of fiscal 2027 was primarily due to the increase in an excess tax benefit from share-based compensation and a benefit from the acquisition of federal tax credits, partially offset by a reduction of benefits from audit settlements.
Previous wording
Net income was $1.4 billion, or $1.28 per diluted share, and $1.3 billion, or $1.14 per diluted share, for the third quarter of fiscal 2026 and fiscal 2025, respectively. Foreign currency had a $0.01 positive impact on diluted earnings per share for both the third quarter of fiscal 2026 and the third quarter of fiscal 2025.
Current wording
Net income was $1.3 billion, or $1.19 per diluted share, and $1 billion, or $0.92 per diluted share, for the first quarter of fiscal 2027 and fiscal 2026, respectively. Foreign currency had a $0.01 positive impact on diluted earnings per share for the first quarter of fiscal 2027 and a $0.02 negative impact on diluted earnings per share for the first quarter of fiscal 2026.
Previous wording
Net sales for Marmaxx were $9 billion for the third quarter of fiscal 2026, an increase of 7% compared to $8.4 billion for the third quarter of fiscal 2025. This increase in the third quarter reflects a 6% increase from comp sales and a 1% increase from non-comp sales.
Current wording
Net sales for Marmaxx were $8.7 billion for the first quarter of fiscal 2027, an increase of 7% compared to $8.1 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a 6% increase from comp sales and a 1% increase from non-comp sales.
Previous wording
For both the third quarter and first nine months of fiscal 2026, the increase in comp sales was driven by a higher average basket and an increase in customer transactions. While both Marmaxx apparel and home comp sales growth were positive, apparel comp sales growth outperformed home comp sales growth for the third quarter of fiscal 2026. Both Marmaxx apparel and home comp sales growth performed in line with the overall comp sales increase for the first nine months of fiscal 2026. Geographically, comp sales growth was strongest in the South and Midwest regions for the third quarter of fiscal 2026 and in the South region for the first nine months of fiscal 2026.
Current wording
For the first quarter of fiscal 2027, the increase in comp sales was driven by a higher average basket and an increase in customer transactions. Marmaxx apparel comp sales growth outperformed home comp sales growth for the first quarter of fiscal 2027. Geographically, each region performed in line with comp sales growth for the first quarter of fiscal 2027.
Previous wording
Segment profit margin increased to 9.2% for the third quarter of fiscal 2026 compared to 7.3% for the same period last year. This increase for the third quarter of fiscal 2026 was primarily due to higher merchandise margin and the favorable impact of transactional foreign exchange. Merchandise margin reflects higher markon and lower markdowns.
Current wording
Segment profit margin increased to 14.7% for the first quarter of fiscal 2027 compared to 13.7% for the same period last year. The increase in segment profit margin for the first quarter of fiscal 2027 was primarily driven by favorable merchandise margin due to higher markon and expense leverage on higher comp sales.
Previous 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 third quarter and first nine months 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 3% of Marmaxx’s net sales for the first quarter of fiscal 2027 and fiscal 2026, and did not have a significant impact on year-over-year segment margin comparisons.
Previous wording
Net sales for HomeGoods were $2.5 billion for the third quarter of fiscal 2026, an increase of 8%, compared to $2.4 billion for the third quarter of fiscal 2025. This increase in the third quarter reflects a 5% increase from comp sales and a 3% increase from non-comp sales.
Current wording
Net sales for HomeGoods were $2.5 billion for the first quarter of fiscal 2027, an increase of 11%, compared to $2.3 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a 9% increase from comp sales and a 2% increase from non-comp sales.
Previous wording
The increase in comp sales was driven by a higher average basket for the third quarter of fiscal 2026 and by an increase in customer transactions and a higher average basket for the first nine months of fiscal 2026. Geographically, comp sales growth was strongest in the South and Midwest regions for the third quarter of fiscal 2026 and in the South and West regions for the first nine months of fiscal 2026.
Current wording
The increase in comp sales was driven by a higher average basket and an increase in customer transactions for the first quarter of fiscal 2027. Geographically, all regions saw strong comp sales growth with comp sales growth being strongest in the Midwest for the first quarter of fiscal 2027.
Previous wording
Segment profit margin increased to 13.5% for the third quarter of fiscal 2026 compared to 12.3% for the same period last year. This increase in segment profit margin for the third quarter of fiscal 2026 was driven by favorable merchandise margin and lower supply chain and store costs as a result of a higher average ticket. Merchandise margin reflects lower freight costs and favorable markon partially offset by higher markdowns.
Current wording
Segment profit margin increased to 12.9% for the first quarter of fiscal 2027 compared to 10.2% for the same period last year. This increase in segment profit margin for the first quarter of fiscal 2027 was driven by favorable merchandise margin, expense leverage on higher comp sales and lower supply chain and store costs. Merchandise margin reflects lower freight costs and favorable markon, partially offset by higher markdowns.
Previous wording
Net sales for TJX International were $5.6 billion for the first nine months of fiscal 2026, an increase of 10%, compared to $5.1 billion for the first nine months of fiscal 2025. This increase in the first nine months reflects a 4% increase in comp sales, a positive foreign currency impact of 4% and a 2% increase in non-comp sales.
Current wording
Net sales for TJX Canada were $1.3 billion for the first quarter of fiscal 2027, an increase of 12%, compared to $1.1 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a 7% increase in comp sales, a positive foreign currency impact of 3% and a 2% increase in non-comp sales.
Previous wording
Net sales for TJX International were $2 billion for the third quarter of fiscal 2026, an increase of 9%, compared to $1.9 billion for the third quarter of fiscal 2025. This increase in the third quarter reflects a positive foreign currency impact of 4%, a 3% increase in comp sales and a 2% increase in non-comp sales.
Current wording
Net sales for TJX International were $1.9 billion for the first quarter of fiscal 2027, an increase of 13%, compared to $1.7 billion for the first quarter of fiscal 2026. This increase in the first quarter reflects a positive foreign currency impact of 6%, a 4% increase in comp sales and a 3% increase in non-comp sales.
Previous wording
E-commerce sales represented approximately 3% of TJX International’s net sales for both the third quarter and first nine months of fiscal 2026 and fiscal 2025.
Current wording
E-commerce sales represented approximately 3% of TJX International’s net sales for the first quarter of fiscal 2027 and approximately 4% for the first quarter of fiscal 2026.
Previous wording
Segment profit margin decreased to 14.9% for the third quarter of fiscal 2026 compared to 15.1% for the same period last year. This decrease for the third quarter of fiscal 2026 was primarily driven by capitalized inventory costs, higher incentive compensation costs and incremental store wage and payroll costs. These costs were partially offset by expense leverage on higher comp sales and higher merchandise margin. Within merchandise margin, lower markon, driven by the negative impact of transactional foreign exchange on the cost of merchandise, was more than offset by lower freight costs.
Current wording
Segment profit margin increased to 4.6% for the first quarter of fiscal 2027 compared to 4.3% for the same period last year. This increase for the first quarter of fiscal 2027 was primarily due to favorable merchandise margin, partially offset by incremental store wage. Within merchandise margin, higher markon, driven by the positive impact of transactional foreign exchange on the cost of merchandise, was partially offset by higher markdowns.
Previous wording
As of November 1, 2025, we held $4.6 billion in cash. Approximately $1.6 billion of our cash was held by our foreign subsidiaries with $1 billion 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 November 1, 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 May 2, 2026, we held $5.6 billion in cash. Our foreign subsidiaries held $1.3 billion in cash, including approximately $730 million, primarily in Europe, which represents working capital and is considered indefinitely reinvested. Cash generated from earnings in certain foreign subsidiaries in fiscal 2027 and onward will not be considered indefinitely reinvested. We have provided for and recorded a deferred tax liability for all applicable taxes on undistributed earnings of our foreign subsidiaries that are not indefinitely reinvested through May 2, 2026. 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 $3.7 billion for the nine months ended November 1, 2025 and $3.4 billion for the nine months ended November 2, 2024.
Current wording
Operating activities resulted in net cash inflows of $1.1 billion for the three months ended May 2, 2026 and $394 million for the three months ended May 3, 2025.
Previous wording
Investing activities resulted in net cash outflows of $1.5 billion for the nine months ended November 1, 2025 and $1.6 billion for the nine months ended November 2, 2024. The cash outflows for both periods were driven by capital expenditures.
Current wording
Investing activities resulted in net cash outflows of $673 million for the three months ended May 2, 2026 and $503 million for the three months ended May 3, 2025. The cash outflows for both periods were driven by capital expenditures.
Previous wording
Capital expenditures in the first nine 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 three months of fiscal 2027 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 2027 will be approximately $2.2 billion to $2.3 billion. We plan to fund these expenditures with our existing cash balances and through internally generated funds.
Previous wording
Financing activities resulted in net cash outflows of $3 billion for the first nine months of fiscal 2026 and $2.7 billion for the first nine 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 $1.1 billion for the first three months of fiscal 2027 and $1 billion for the first three months of fiscal 2026. The cash outflows for both periods were primarily driven by equity repurchases and dividend payments.
Previous wording
Under our stock repurchase programs, we paid $1.7 billion to repurchase and retire 13.4 million shares of our stock in the first nine months of fiscal 2026 and we paid $1.7 billion to repurchase and retire 15.4 million shares of our stock in the first nine months of fiscal 2025.
Current wording
Under our stock repurchase programs, we paid $604 million to repurchase and retire 3.8 million shares of our stock in the first three months of fiscal 2027 and we paid $613 million to repurchase and retire 5.1 million shares of our stock in the first three months of fiscal 2026.
Previous wording
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 November 1, 2025, approximately $1.9 billion remained available under our existing stock repurchase programs. We currently plan to repurchase approximately $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
We currently plan to repurchase approximately $2.75 billion to $3.0 billion of common stock under our stock repurchase programs for fiscal 2027. As of May 2, 2026, approximately $3.5 billion remained available under our existing stock repurchase programs. 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 each of the quarters in the first nine months of fiscal 2026 and $0.375 per share for each of the quarters in the first nine months of fiscal 2025. Cash payments for dividends on our common stock totaled $1.4 billion for the first nine months of fiscal 2026 and $1.2 billion for the first nine months of fiscal 2025.
Current wording
We declared quarterly dividends on our common stock of $0.48 per share for the first three months of fiscal 2027 and $0.425 per share for the first three months of fiscal 2026. Cash payments for dividends on our common stock totaled $474 million for the first three months of fiscal 2027 and $424 million for the first three months of fiscal 2026.
Previous wording
This Quarterly Report on Form 10-Q contains “forward-looking statements”. These forward-looking statements generally can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "seek," "should," "will," "would," or any variations of these words or other words with similar meanings. These forward-looking statements address various matters that we intend, expect, or believe may occur in the future, including, among others, statements regarding the Company's anticipated operating and financial performance, business plans and prospects, investments, anticipated dividends and share repurchases, the impact of tariff policies, and plans with respect to long-term indebtedness. Each forward-looking statement is inherently subject to risks, uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from those expressed or implied by such statement. We cannot guarantee that the results and other expectations expressed, anticipated or implied in any forward-looking statement will be realized. Applicable risks and uncertainties include, among others: execution of buying strategy and inventory management; customer trends and preferences; competition; various marketing efforts; operational and business expansion; management of large size and scale; merchandise sourcing and transport; international trade and tariff policies; data security and maintenance and development of information technology systems; labor costs and workforce challenges; personnel recruitment, training and retention; corporate and retail banner reputation; evolving corporate governance and public disclosure regulations and expectations with respect to environmental, social and governance matters; expanding international operations; fluctuations in quarterly and annual operating results and market expectations; inventory or asset loss; cash flow; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; economic conditions and consumer spending; market instability; severe weather, serious disruptions or catastrophic events; disproportionate impact of disruptions during this fiscal year; commodity availability and pricing; fluctuations in currency exchange rates; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors that may be described in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K filed with the SEC. We caution investors, potential investors and others not to place considerable reliance on the forward-looking statements contained in this Form 10-Q. You are encouraged to read any further disclosures …
Excerpt shortened here; the source contains the full paragraph.
Current wording
We cannot guarantee that the results and other expectations expressed, anticipated, or implied in any forward-looking statement will be realized. Applicable risks and uncertainties include, among others: execution of buying strategy and inventory management; customer trends and preferences; competition; various marketing efforts; operational and business expansion; management of large size and scale; merchandise sourcing and transport; international trade and tariff policies; data security and maintenance and development of information technology systems; labor costs and workforce challenges; personnel recruitment, training, and retention; corporate and retail banner reputation; evolving corporate governance and public disclosure regulations and expectations with respect to environmental, social, and governance matters; expanding international operations; fluctuations in anticipated quarterly and annual operating results, financial performance, business plan prospects, investments and market expectations; inventory or asset loss; cash flow and plans with respect to long-term indebtedness; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; economic conditions and consumer spending; market instability; severe weather, serious disruptions or catastrophic events; disproportionate impact of disruptions during certain seasons of the fiscal year; commodity availability and pricing; fluctuations in currency exchange rates; fluctuations in fuel prices; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors set forth under Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended January 31, 2026, as well as the other information we file with the U.S. Securities and Exchange Commission (“SEC”).
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business, including potential IEEPA tariff refunds, 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. However, the overall impact depends on a range of factors, including trade negotiations between the U.S. and other countries, responses of other countries, judicial review, exceptions that could be granted and cost of alternative sources of merchandise.
Current report — wording carried from elsewhere
Uncertainty remains regarding the continued impact on our direct imports, indirect imports, vendor and competitor pricing, consumer demand, tariff pass-throughs and retaliatory tariffs. We will continue to closely monitor developments related to tariffs and evaluate their potential impact on our business and financial condition.
Current report — wording carried from elsewhere
The increase in comp sales for the first quarter of fiscal 2027 was driven by an increase in customer transactions and a higher average basket.
Current report — wording carried from elsewhere
The increase in comp sales for the first quarter of fiscal 2027 was driven by an increase in customer transactions and a higher average basket.
Current report — wording carried from elsewhere
This Quarterly Report on Form 10-Q (“Form 10-Q”) contains “forward-looking statements.” These forward-looking statements generally can be identified by the use of words such as “aim,” “anticipate,” “approximately,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “potential,” “project,” “seek,” “should,” “strive,” “target,” “will,” and “would,” or any variations of these words or other words with similar meanings. These forward-looking statements address various matters that we intend, expect or believe may occur in the future, including, among others, some of the statements in this Form 10-Q under Item 1, “Consolidated Financial Statements” and Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” relating to, among others, the Company's anticipated operating and financial performance, business plans and prospects, investments, the availability of merchandise, execution of our business model, payment of dividends, plans for future stock repurchases, future use and availability of cash and cash equivalents, expected capital expenditures, trends in demand for our products, the impact of foreign exchange rates, expectations with respect to future store openings, the recovery of tariff refunds and the impact of fuel resources and supply chain on our inventory flow and financial performance and plans with respect to long-term indebtedness. Each forward-looking statement contained in this Form 10-Q is inherently subject to risks, uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from those expressed or implied by such statement.
Current report — wording carried from elsewhere
We caution investors, potential investors, and others not to place considerable reliance on the forward-looking statements contained in this Form 10-Q. You are encouraged to read our filings with the SEC and any further disclosures we may make in our future reports to the SEC, available at www.sec.gov, on our website, or otherwise, for a discussion of these and other risks and uncertainties. Our forward-looking statements in this report speak only as of the date of this Form 10-Q, and we undertake no obligation to update or revise any of these statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Net sales for the nine months ended November 1, 2025 totaled $42.6 billion, a 7% increase versus the first nine months of fiscal 2025 net sales of $40 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 first nine months of fiscal 2026 and fiscal 2025.
Previous report — wording carried elsewhere
We plan to fund these expenditures with our existing cash balances and through internally generated funds.