The TJX Companies, Inc. reported third‑quarter 2026 results that surpassed expectations, with net sales of $15.12 billion—up 7% year‑over‑year—and diluted earnings per share of $1.28, a $0.06 or 4.9% beat on the consensus estimate of $1.22. Comparable sales grew 5% and the average basket size increased 5%, reflecting stronger customer traffic and higher spending per visit.
Revenue growth was driven by a broad‑based lift across all banners. All divisions—TJX, HomeGoods, Marshalls, and the Canadian and international operations—reported comparable sales gains, while the 5% rise in basket size helped lift total sales beyond the 7% year‑over‑year increase. The company’s off‑price model continued to attract value‑seeking shoppers, and inventory availability remained robust, supporting the higher sales volume.
Gross profit margin expanded to 32.6% from 31.6% a year earlier, a 1.0‑percentage‑point lift that was largely attributable to lower freight costs and expense leverage on sales. Pretax profit margin rose to 12.7% from 12.3%, driven by the same cost‑control measures. Selling, general and administrative expenses grew 0.6 percentage points to 20.1% of sales, reflecting higher store wages, payroll costs, a contribution to the TJX Foundation and increased incentive compensation accruals, but the overall margin improvement offset these expense increases.
Management raised its full‑year 2026 guidance, now projecting diluted EPS of $4.63 to $4.66 per share, up from the prior $4.52 to $4.57 range, and confirmed a 4% increase in comparable sales for the year, up from a 3% forecast. The higher guidance signals confidence that the company will sustain its momentum through the holiday season and that cost‑control initiatives will continue to support profitability.
CEO Ernie Herrman said the quarter was “extremely pleased” with the results, noting that “sales, pretax profit margin, and earnings per share all exceeded our expectations” and that the company’s value proposition continues to drive traffic across all divisions. He added that the fourth quarter is off to a strong start and that the company remains focused on delivering holiday‑season growth.
Strategically, TJX is expanding its footprint, with plans to open stores in Spain in spring 2026, and it returned $1.1 billion to shareholders in Q3 through share repurchases and dividends. The company also highlighted its ability to offset tariff and currency headwinds, citing effective inventory management and pricing power as key mitigants.
Headwinds remain in the form of incremental store wage and payroll costs, foundation contributions, and higher incentive compensation accruals. Nonetheless, the company’s strong demand, efficient cost structure, and expanding international presence position it well for continued growth in a competitive retail environment.
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