The TJX Companies, Inc. reported fourth‑quarter fiscal 2026 results that surpassed expectations, delivering a GAAP diluted earnings per share of $1.58—$0.20 above the consensus estimate of $1.38—and net sales of $17.743 billion, $0.38 billion higher than the $17.36 billion forecast. The earnings beat was driven by a 5% rise in comparable store sales, supported by strong demand across HomeGoods, Marmaxx, and international operations. Compared with the same quarter a year earlier, Q4 FY2025 diluted EPS was $1.23 and net sales were $16.4 billion, underscoring a clear acceleration in both top‑line and bottom‑line performance.
The company’s pretax profit margin for the quarter reached 13.5%, up 1.9 percentage points from 11.6% in Q4 FY2025, while the adjusted pretax margin rose to 12.2%, 0.6 percentage points above the prior year. The margin expansion reflects lower inventory shrink expense, effective expense leverage on above‑plan sales, and a favorable mix shift toward higher‑margin segments. The operating margin figure of 12.7% reported in the original article is not supported by the company’s disclosures; the press release focuses on pretax profit margins instead.
Management highlighted the robust performance of HomeGoods and Marmaxx, which posted comparable sales growth of 6% and 5% respectively, and noted that international operations achieved a 9.2% profit margin—its highest in history. CEO Ernie Herrman said, “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.” He added that the company’s “off‑price fundamentals” continue to drive customer value and a treasure‑hunt shopping experience.
The company raised its full‑year 2026 GAAP EPS guidance to $4.93–$5.02, a modest increase from the prior guidance of $4.87, and confirmed a 13% dividend increase to $0.48 per share. It also announced a $2.5 billion to $2.75 billion share‑repurchase program for fiscal 2027. The guidance lift signals confidence in continued demand and margin expansion, but the cautious first‑quarter FY2027 EPS outlook of $0.97–$0.99—below the consensus estimate of $1.24—indicates management’s concern about near‑term consumer spending and potential cost pressures.
The results reinforce TJX’s competitive moat in the off‑price retail sector, where its flexible pricing model and global buying network allow it to convert tariff pressures into merchandise availability advantages. The strong earnings beat, combined with the guidance raise, suggests the company is well positioned to capture market share gains while maintaining a healthy cash‑flow profile to support long‑term expansion and shareholder returns. Investors reacted with caution, focusing on the lower first‑quarter guidance and potential headwinds in the near term, despite the robust fourth‑quarter performance.
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