Industry Overview - The retail industry is experiencing a "barbell" effect, with significant growth at both the high-end and low-end, while the middle segment, exemplified by Target Corp., is being squeezed out [1] - Discount retailers like TJX Companies are reporting record revenues and stock gains, while luxury brands such as ULTA Beauty and Kate Spade are also seeing strong sales and maintaining healthy margins [1] Consumer Behavior - Consumers are increasingly seeking value, whether through discounted products or durable luxury items, leading to a K-shaped spending pattern that favors affluent households [2] Company Performance: Williams-Sonoma - Williams-Sonoma has shown resilience against tariff impacts, managing to maintain margins through inventory management and cost reductions [4][5] - The company reported earnings per share (EPS) and revenue that exceeded analyst expectations, with a 3.7% year-over-year growth in comparable sales and an increase in full-year revenue guidance to 2%-5% [7] - The stock has increased by over 30% in the last three months, indicating strong business performance [8] Company Performance: Ralph Lauren - Ralph Lauren has demonstrated resilience in the retail sector, with a 13.7% year-over-year revenue growth to $1.72 billion in fiscal Q1 2026, and an increase in full-year guidance despite inflation concerns [11] - The stock has risen more than 35% year-to-date, supported by strong earnings and a 160-basis-point gross margin increase [10] Company Performance: Tapestry Inc. - Tapestry, which includes brands like Kate Spade and Coach, reported a record revenue of $7 billion for FY 2025, driven by double-digit growth from the Coach brand [15] - The company achieved 8.3% year-over-year growth in revenue for fiscal Q4 2025, with EPS of $1.02, both surpassing analyst projections [17]

Company Overview - The TJX Companies, Inc. (NYSE:TJX) is an off-price retailer that provides a variety of products including apparel, footwear, accessories, home fashions, furniture, décor, and seasonal merchandise through both physical stores and e-commerce platforms [2]. Performance Metrics - TJX reported a same store sales growth of 4% in the first half, which is considered remarkable in the retail sector [1]. - The company has experienced accelerating revenue growth across all four of its divisions, alongside healthy gross margin expansion, contributing to a positive stock performance post-earnings [1]. Market Position - Jim Cramer highlighted TJX as the highest quality operator in the off-price retail space, emphasizing its strong value proposition compared to other retailers [1].

Core Insights - The TJX Companies, Inc. (TJX) is reinforcing its position as a leading value retailer by offering a strong combination of brand, fashion, quality, and price across global markets [1] - The company plans to open over 1,800 additional stores in existing countries and Spain, with a focus on growth in its Mexico joint venture and investments in the Middle East [2][9] - As of the end of Q2 fiscal 2026, TJX operated 5,134 stores, with plans for 130 net new stores and nearly 500 store remodels this fiscal year [3][4] Store Expansion Strategy - TJX's management is confident in achieving approximately 3% net unit growth in the coming years, supported by flexible buying and supply chain systems [4] - Competitors in the store expansion space include Ross Stores, which plans to add 90 stores in fiscal 2025, and Burlington Stores, which aims for 100 net new stores in the same period [5][6][7] Financial Performance and Valuation - TJX shares have increased by 16.6% year-to-date, outperforming the industry growth of 5.6% [8] - The company trades at a forward price-to-earnings ratio of 29.06X, compared to the industry average of 31X [10] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 7% for fiscal 2026 and 10.3% for fiscal 2027, with EPS estimates trending upward [11][12]

Core Insights - The Marshalls Good Stuff Accelerator Program is entering its second year, continuing to provide women with resources for personal and professional growth [1][3] - The program aims to address the access gap for women, as highlighted by research indicating that one in three women feel they lack necessary resources [4] Program Details - The program offers a year-long virtual experience for 40 selected women, including live mentorship sessions, peer coaching, and a one-time grant of $5,000 [5][6] - Participants will have full access to Luminary Collective PLUS, which includes over 25 monthly virtual events and networking opportunities [5] Impact and Success - Initial participants reported significant progress, with 95% indicating they feel they are making strides toward their goals [6][9] - The program has facilitated various achievements, such as launching businesses and enhancing personal confidence [6] Application Process - Applications for the program are open until October 14, 2025, with selections made in early December [7] - The program will run from January 2026 to December 2026 [7]

Core Viewpoint - TJX Companies reported better-than-expected earnings, showing resilience amid market uncertainties due to tariffs and their potential impact on business operations [1][3]. Financial Performance - For the period ended August 2, TJX's sales rose by 7%, totaling $14.4 billion, with comparable same-store sales increasing by 4%, surpassing the previous forecast of 2% to 3% [5][6]. - The diluted per-share profit was $1.10, reflecting a 15% year-over-year increase [5]. Future Guidance - Management has raised its full fiscal year guidance across multiple metrics, including comparable sales growth from 2%-3% to 3%, diluted earnings per share from $4.34-$4.43 to $4.52-$4.57, and pretax profit margin from 11.3%-11.4% to 11.4%-11.5% [7][8]. - The guidance assumes that current tariff levels will remain unchanged for the remainder of the year, with expectations to offset pressure from tariffs throughout fiscal 2026 [8]. Market Position and Strategy - TJX benefits from other retailers' excess inventory, allowing it to purchase goods at lower prices and offer savings to consumers, creating a bargain-hunting experience [8]. - The company is positioned well despite the challenges faced by retailers reliant on discretionary spending, as evidenced by its strong performance [2][3]. Valuation Concerns - TJX's stock has increased by 13% since January, outperforming the S&P 500, but currently trades at a price-to-earnings multiple of 31, which is higher than its historical norm [9]. - The elevated valuation suggests that the market is pricing in more growth than TJX is expected to deliver, which raises questions about whether the premium is excessive [11]. Investment Outlook - Despite a high valuation, TJX is viewed as a potentially excellent long-term investment, especially for those seeking stable stocks amid economic uncertainty [12].

Core Insights - TJX Companies' international business is a significant growth driver, with a 5% year-over-year increase in comparable store sales in Q2 of fiscal 2026, particularly strong in Europe and Australia [1][10] - The company's profit margin for the international segment improved to 5.2%, an increase of 80 basis points from the previous year [1][10] - Management highlighted the company's established presence and leadership in international markets, which enhances its value proposition to consumers [2] Expansion Opportunities - TJX plans to open over 1,800 new stores in existing markets, including Spain, which is expected to contribute to future sales and earnings growth [3][10] - The company is also exploring growth through a joint venture in Mexico and investments in the Middle East, aiming to introduce its off-price retail model to new regions [4] Sourcing and Product Strategy - TJX's global sourcing network includes over 21,000 vendors across more than 100 countries, allowing the company to offer fresh, branded assortments in its international stores [5] Competitive Landscape - Walmart Inc. reported a 10.5% increase in international sales in Q2 of fiscal 2026, driven by growth in China, Walmex, and Flipkart, with e-commerce penetration reaching nearly 27% [6] - Best Buy Co., Inc. saw a year-over-year increase of 11.3% in international sales, although its gross margin decreased by 210 basis points [7] Financial Performance - TJX stock has increased by 6.6% over the past three months, contrasting with a 4.4% decline in the industry [8] - The forward 12-month price-to-earnings ratio for TJX is 28.29X, lower than the industry's average of 31.72X, indicating a favorable valuation [11] - Earnings estimates for fiscal 2026 and 2027 imply year-over-year growth of 7% and 10.3%, respectively, with recent upward revisions in earnings estimates [12]

Core Insights - American importers are facing the highest average tariff rates in nearly 100 years, leading to difficult choices for businesses regarding margin impacts and customer pricing [1] - Retail companies are beginning to struggle under the weight of increasing import taxes, while some companies have successfully navigated these challenges and achieved new stock highs [2][5] Group 1: Impact of Tariffs on Companies - Companies that rely heavily on imported materials are significantly affected by tariffs, often needing to raise prices to maintain margins [2][3] - Domestic producers can raise prices in response to competitors' price increases, allowing them to expand their margins [2] Group 2: Examples of Companies Mitigating Tariff Impact - eBay has reached new all-time highs due to its platform model, which does not involve holding inventory, thus avoiding tariffs [6][8] - eBay's net margin exceeds 20%, and despite a 51% year-to-date gain, it trades at a lower P/E ratio compared to the industry average [10] - Tractor Supply Co. sources domestically, with only 12% of sales from imported products, leading to record sales of $4.44 billion in Q2 2025 [12][14] - TJX Companies benefits from acquiring excess inventory at discounts, leveraging supply chain disruptions caused by tariffs [16][19]

Group 1 - The U.S. consumers are facing a new wave of price increases as companies from food giants to hardware chains warn that tariff costs are being passed on to retail prices [1][2] - Major retailers like Walmart, Target, and Best Buy have indicated that tariff-related price hikes are gradually reflected in the costs of grocery items, home goods, and electronics [1] - J.M. Smucker warned of a 22% drop in coffee profits due to tariffs, leading to further price increases [1] - Hormel Foods noted a sharp rise in commodity input costs after its quarterly performance fell short of expectations, resulting in a 12% drop in its stock price [1] - A recent ruling by a federal appeals court deemed most of Trump's global import tariffs unconstitutional, adding uncertainty to future costs for retailers and consumers [1] Group 2 - The former CEO of Gap expressed that the current situation is beyond control, indicating that businesses cannot determine the relationship between product costs, retail pricing, and profit margins [2] - Retail executives warned that more price increases are imminent as new inventory is procured at higher costs [2] - Walmart's CEO mentioned that the company is trying to maintain low prices as long as possible, but costs are expected to continue rising into the third and fourth quarters [2] - The economic pressure is forcing retailers to weigh how much cost can be absorbed and how much will inevitably be passed on to consumers [2] - A consumer confidence survey showed a nearly 6% decline in August compared to July, with inflation expectations rising from 4.5% to 4.8% [2] Group 3 - Consumer behavior in the U.S. is changing, with households across income levels becoming more selective about where and how they spend [3] - Whirlpool's CEO noted that consumers are starting to purchase lower-end products, while Procter & Gamble observed a slight downgrade in brand preferences [3] - The concept of "alternative consumption" is emerging, where consumers opt for cost-effective substitutes rather than purely downgrading [3] - Retailers like TJX, Ross, and Marshall's are benefiting as consumers seek lower-priced brand items [3]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents TJX's unaudited consolidated financial statements and management's discussion of financial performance and market risks [ITEM 1. Consolidated Financial Statements](index=3&type=section&id=ITEM%201.%20Consolidated%20Financial%20Statements) This section provides TJX's unaudited consolidated financial statements, including income, balance sheets, cash flows, and detailed accounting notes [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) The company reported increased net sales and net income for both the thirteen and twenty-six weeks ended August 2, 2025, compared to the prior year, leading to higher basic and diluted earnings per share Consolidated Statements of Income (Millions of US$) | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $14,401 | $13,468 | $27,512 | $25,947 | | Net income | $1,243 | $1,099 | $2,279 | $2,169 | | Basic EPS | $1.11 | $0.97 | $2.04 | $1.92 | | Diluted EPS | $1.10 | $0.96 | $2.02 | $1.89 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income increased for both the thirteen and twenty-six weeks ended August 2, 2025, primarily driven by net income and positive foreign currency translation adjustments, especially for the twenty-six-week period Consolidated Statements of Comprehensive Income (Millions of US$) | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $1,243 | $1,099 | $2,279 | $2,169 | | Foreign currency translation adjustments, net of tax | $19 | $18 | $164 | $(0) | | Total comprehensive income | $1,262 | $1,117 | $2,443 | $2,169 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of August 2, 2025, TJX reported an increase in total assets and shareholders' equity compared to both February 1, 2025, and August 3, 2024, while cash and cash equivalents decreased from the beginning of the year Consolidated Balance Sheets (Millions of US$) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--- | :--- | :--- | :--- | | Total assets | $32,885 | $31,749 | $30,555 | | Total liabilities | $24,019 | $23,350 | $22,773 | | Total shareholders' equity | $8,866 | $8,393 | $7,782 | | Cash and cash equivalents | $4,639 | $5,335 | $5,250 | | Merchandise inventories | $7,372 | $6,421 | $6,470 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the twenty-six weeks ended August 2, 2025, net cash provided by operating activities decreased compared to the prior year, while net cash used in investing activities slightly decreased, and net cash used in financing activities increased significantly, resulting in a larger net decrease in cash and cash equivalents Consolidated Statements of Cash Flows (Millions of US$) | Metric | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,185 | $2,366 | | Net cash (used in) investing activities | $(969) | $(990) | | Net cash (used in) financing activities | $(2,002) | $(1,722) | | Net (decrease) in cash and cash equivalents | $(696) | $(350) | | Cash and cash equivalents at end of period | $4,639 | $5,250 | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased for both the thirteen and twenty-six weeks ended August 2, 2025, primarily due to net income, partially offset by cash dividends and common stock repurchases Consolidated Statements of Shareholders' Equity (Millions of US$) | Metric | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | | Total shareholders' equity (End of Period) | $8,866 | $7,782 | | Net income | $2,279 | $2,169 | | Cash dividends declared on common stock | $(950) | $(849) | | Common stock repurchased | $(1,136) | $(1,073) | [Notes To Consolidated Financial Statements](index=9&type=section&id=Notes%20To%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of TJX's accounting policies, financial instruments, segment information, and other critical financial disclosures, offering context to the consolidated financial statements [Note A. Basis of Presentation and Summary of Significant Accounting Policies](index=9&type=section&id=Note%20A.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines GAAP basis for interim financials, TJX's fiscal year, key accounting estimates, deferred gift card revenue, equity investments, and recently adopted accounting standards - TJX's fiscal year ends on the Saturday nearest to the last day of January; fiscal 2026 is a 52-week year[28](index=28&type=chunk) Deferred Gift Card Revenue (Millions of US$) | Metric | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | Balance, beginning of year | $824 | $773 | | Deferred revenue | $861 | $889 | | Revenue recognized | $(920) | $(940) | | Balance, end of period | $774 | $720 | - TJX completed a **49% ownership stake** in Multibrand Outlet Stores (MOS) for **$193 million** and a **35% ownership stake** in Brands for Less (BFL) for **$358 million** during fiscal 2025, both accounted for under the equity method[31](index=31&type=chunk)[33](index=33&type=chunk) - The company adopted the new standard for improvements to reportable segment disclosures as of February 1, 2025, on a retrospective basis[42](index=42&type=chunk) [Note B. Property at Cost](index=11&type=section&id=Note%20B.%20Property%20at%20Cost) This note details property at cost, including land, buildings, leasehold costs, and furniture, along with accumulated depreciation and current period depreciation expense Property at Cost (Millions of US$) | Component | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--- | :--- | :--- | :--- | | Land and buildings | $2,640 | $2,558 | $2,400 | | Leasehold costs and improvements | $5,149 | $4,710 | $4,539 | | Furniture, fixtures and equipment | $9,171 | $8,714 | $8,425 | | Total property at cost | $16,960 | $15,982 | $15,364 | | Less: accumulated depreciation and amortization | $9,185 | $8,636 | $8,396 | | Net property at cost | $7,775 | $7,346 | $6,968 | - Depreciation expense was **$307 million** for the three months ended August 2, 2025, and **$602 million** for the six months ended August 2, 2025[43](index=43&type=chunk) [Note C. Accumulated Other Comprehensive (Loss) Income](index=12&type=section&id=Note%20C.%20Accumulated%20Other%20Comprehensive%20(Loss)%20Income) This note details changes in Accumulated Other Comprehensive (Loss) Income, primarily reflecting foreign currency translation adjustments and deferred benefit costs Accumulated Other Comprehensive (Loss) Income (Millions of US$) | Component | Balance, Feb 3, 2024 | Balance, Feb 1, 2025 | Balance, Aug 2, 2025 | | :--- | :--- | :--- | :--- | | Foreign Currency Translation | $(514) | $(619) | $(455) | | Deferred Benefit Costs | $(18) | $10 | $10 | | Total Accumulated Other Comprehensive (Loss) Income | $(532) | $(609) | $(445) | [Note D. Capital Stock and Earnings Per Share](index=12&type=section&id=Note%20D.%20Capital%20Stock%20and%20Earnings%20Per%20Share) TJX's Board approved a new $2.5 billion stock repurchase program, with $2.4 billion remaining, and details share repurchases, diluted EPS, and cash dividends - A new stock repurchase program for up to an additional **$2.5 billion** was approved in February 2025, with approximately **$2.4 billion** available as of August 2, 2025[46](index=46&type=chunk)[169](index=169&type=chunk) Common Stock Repurchases (Millions of Shares / Millions of US$) | Period | Total Number of Shares Repurchased and Retired | Total Cost | | :--- | :--- | :--- | | 13 Weeks Ended Aug 2, 2025 | 4.1 | $515 | | 13 Weeks Ended Aug 3, 2024 | 5.1 | $559 | | 26 Weeks Ended Aug 2, 2025 | 9.2 | $1,128 | | 26 Weeks Ended Aug 3, 2024 | 10.4 | $1,068 | Earnings Per Share and Dividends | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Basic earnings per share | $1.11 | $0.97 | $2.04 | $1.92 | | Diluted earnings per share | $1.10 | $0.96 | $2.02 | $1.89 | | Cash dividends declared per share | $0.425 | $0.375 | $0.85 | $0.75 | [Note E. Financial Instruments](index=13&type=section&id=Note%20E.%20Financial%20Instruments) TJX manages market risks using derivative financial instruments, primarily diesel fuel and foreign currency contracts, with a net fair value liability of $24.9 million as of August 2, 2025 - TJX uses derivative financial instruments to minimize market risks from changes in interest, foreign currency exchange rates, and fuel costs, but not for speculative purposes[49](index=49&type=chunk) - The company hedges approximately **50%** of its estimated notional diesel fuel requirements for the remainder of fiscal 2026 and the first six months of fiscal 2027[50](index=50&type=chunk) Net Fair Value of Derivative Financial Instruments (Millions of US$) | Date | Current Asset | Current (Liability) | Net Fair Value in U.S.$ | | :--- | :--- | :--- | :--- | | August 2, 2025 | $14.2 | $(39.1) | $(24.9) | | February 1, 2025 | $53.1 | $(18.1) | $35.0 | | August 3, 2024 | $19.1 | $(28.6) | $(9.5) | Derivative Gain (Loss) Recognized in Income (Millions of US$) | Derivative Type | Location of Gain (Loss) | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fair value hedges (Intercompany balances) | SG&A expenses | $(7) | $(0) | $(30) | $1 | | Economic hedges (Diesel fuel contracts) | Cost of sales | $11 | $(11) | $(1) | $(16) | | Economic hedges (Merchandise purchase commitments) | Cost of sales | $3 | $3 | $(56) | $14 | | **Total Gain (Loss) recognized in income** | | **$2** | **$(7)** | **$(95)** | **$0** | [Note F. Fair Value Measurements](index=18&type=section&id=Note%20F.%20Fair%20Value%20Measurements) This note defines the fair value hierarchy and presents financial assets and liabilities measured at fair value, including Executive Savings Plan investments and derivative contracts Financial Assets and Liabilities Measured at Fair Value (Millions of US$) | Category | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--- | :--- | :--- | :--- | | **Level 1 Assets:** | | | | | Executive Savings Plan investments | $511.7 | $481.4 | $453.1 | | **Level 2 Assets:** | | | | | Foreign currency exchange contracts | $14.2 | $53.1 | $19.1 | | **Level 2 Liabilities:** | | | | | Foreign currency exchange contracts | $38.7 | $9.0 | $13.0 | | Diesel fuel contracts | $0.4 | $9.1 | $15.6 | Long-Term Debt Fair Value (Millions of US$) | Date | Carrying Value | Fair Value (Level 2) | | :--- | :--- | :--- | | August 2, 2025 | $2,867 | $2,702 | | February 1, 2025 | $2,866 | $2,634 | | August 3, 2024 | $2,864 | $2,676 | [Note G. Segment Information](index=19&type=section&id=Note%20G.%20Segment%20Information) TJX operates four segments (Marmaxx, HomeGoods, TJX Canada, TJX International), with performance evaluated by "segment profit or loss," showing growth across most segments - TJX operates **four segments**: Marmaxx, HomeGoods, TJX Canada, and TJX International, with Sierra included in Marmaxx[65](index=65&type=chunk) Segment Net Sales and Profit (Millions of US$) | Segment | 13 Weeks Ended Aug 2, 2025 Net Sales | 13 Weeks Ended Aug 2, 2025 Segment Profit | 26 Weeks Ended Aug 2, 2025 Net Sales | 26 Weeks Ended Aug 2, 2025 Segment Profit | | :--- | :--- | :--- | :--- | :--- | | Marmaxx | $8,841 | $1,254 | $16,893 | $2,361 | | HomeGoods | $2,286 | $228 | $4,540 | $458 | | TJX Canada | $1,381 | $221 | $2,525 | $343 | | TJX International | $1,893 | $99 | $3,554 | $171 | | **Total TJX** | **$14,401** | **$1,802** | **$27,512** | **$3,333** | Segment Identifiable Assets (Millions of US$) | Segment | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--- | :--- | :--- | :--- | | Marmaxx | $14,943 | $14,137 | $13,535 | | HomeGoods | $4,201 | $4,037 | $3,938 | | TJX Canada | $2,520 | $2,128 | $2,277 | | TJX International | $4,647 | $4,243 | $4,323 | | **Segment identifiable assets** | **$26,311** | **$24,545** | **$24,073** | Segment Capital Expenditures and Depreciation (Millions of US$) | Segment | 26 Weeks Ended Aug 2, 2025 Capital Expenditures | 26 Weeks Ended Aug 2, 2025 Depreciation and Amortization | | :--- | :--- | :--- | | Marmaxx | $650 | $334 | | HomeGoods | $118 | $113 | | TJX Canada | $73 | $50 | | TJX International | $117 | $105 | | **Total** | **$958** | **$602** | [Note H. Pension Plans and Other Retirement Benefits](index=22&type=section&id=Note%20H.%20Pension%20Plans%20and%20Other%20Retirement%20Benefits) This note details financial information for TJX's funded and unfunded pension plans, including expenses and anticipated contributions for fiscal 2026 Pension Plan Expense (Millions of US$) | Plan | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Funded Plan | $4 | $6 | $8 | $12 | | Unfunded Plan | $2 | $3 | $4 | $5 | - TJX anticipates making contributions of **$8 million** to the unfunded plan in fiscal 2026, with no required funding for the funded plan[74](index=74&type=chunk) [Note I. Long-Term Debt and Credit Lines](index=22&type=section&id=Note%20I.%20Long-Term%20Debt%20and%20Credit%20Lines) TJX's long-term debt consists of $2,867 million in senior unsecured notes, complemented by two $1.5 billion revolving credit facilities with no outstanding amounts Long-Term Debt (Millions of US$) | Note Type | Maturity | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | 2.250% senior unsecured notes | Sep 15, 2026 | $999 | $998 | $998 | | 1.150% senior unsecured notes | May 15, 2028 | $500 | $500 | $500 | | 3.875% senior unsecured notes | Apr 15, 2030 | $496 | $496 | $496 | | 1.600% senior unsecured notes | May 15, 2031 | $500 | $500 | $500 | | 4.500% senior unsecured notes | Apr 15, 2050 | $383 | $383 | $383 | | **Total debt** | | **$2,878** | **$2,877** | **$2,877** | | Debt issuance costs | | $(11) | $(11) | $(13) | | **Long-term debt** | | **$2,867** | **$2,866** | **$2,864** | - TJX has two revolving credit facilities totaling **$1.5 billion**, maturing in May 2029 and May 2030, with no outstanding amounts as of August 2, 2025[78](index=78&type=chunk)[81](index=81&type=chunk) [Note J. Income Taxes](index=23&type=section&id=Note%20J.%20Income%20Taxes) Recent tax legislation is not expected to materially impact TJX's income tax provision, while the effective tax rate decreased due to federal tax credits - The One Big Beautiful Bill Act (signed July 4, 2025) is expected to reduce current year U.S. cash tax obligations but not materially impact the income tax provision[82](index=82&type=chunk)[114](index=114&type=chunk) - The effective income tax rate decreased to **24.5%** for Q2 fiscal 2026 (from 25.1% in Q2 fiscal 2025) and to **23.9%** for the first six months of fiscal 2026 (from 24.1% in fiscal 2025), primarily due to a benefit from federal tax credits[84](index=84&type=chunk)[116](index=116&type=chunk) - Net unrecognized tax benefits were **$209 million** as of August 2, 2025[85](index=85&type=chunk) [Note K. Contingent Obligations, Contingencies, and Commitments](index=23&type=section&id=Note%20K.%20Contingent%20Obligations%2C%20Contingencies%2C%20and%20Commitments) TJX is involved in various legal proceedings and may have contingent contractual obligations, with immaterial amounts accrued in financial statements - TJX is subject to various legal proceedings, lawsuits, disputes, and claims arising in the ordinary course of business, with immaterial amounts accrued in the financial statements[89](index=89&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on TJX's financial performance and condition, detailing results of operations, liquidity, and capital resources for the second quarter and first six months of fiscal 2026 [OVERVIEW](index=25&type=section&id=OVERVIEW) TJX is a leading global off-price retailer operating over 5,100 stores across four segments, offering merchandise at significant discounts while mitigating economic impacts - TJX is the leading off-price apparel and home fashions retailer globally, operating over **5,100 stores** across four segments[90](index=90&type=chunk) - The company sells merchandise at prices generally **20% to 60% below** full-price retailers' regular prices[90](index=90&type=chunk) - TJX continues to monitor and mitigate the impact of tariffs and global economic volatility through its merchandise sourcing model[91](index=91&type=chunk) [RESULTS OF OPERATIONS](index=25&type=section&id=RESULTS%20OF%20OPERATIONS) For Q2 fiscal 2026, TJX reported a 7% net sales increase to $14.4 billion, 4% comparable store sales growth, and diluted EPS of $1.10, with improved pre-tax profit margin Key Financial Metrics (Billions of US$ / Percentages) | Metric | Q2 Fiscal 2026 | Q2 Fiscal 2025 | Change | | :--- | :--- | :--- | :--- | | Net sales | $14.4 billion | $13.5 billion | +7% | | Consolidated comp sales | +4% | +4% | 0 ppt | | Diluted EPS | $1.10 | $0.96 | +$0.14 | | Pre-tax profit margin | 11.4% | 10.9% | +0.5 ppt | | Cost of sales ratio | 69.3% | 69.6% | -0.3 ppt | | SG&A expense ratio | 19.5% | 19.8% | -0.3 ppt | - Home comp sales growth outperformed apparel comp sales growth for both the second quarter and first six months of fiscal 2026[96](index=96&type=chunk) - Consolidated average per store inventories were up **10%** at the end of Q2 fiscal 2026 compared to Q2 fiscal 2025[92](index=92&type=chunk) [U.S. SEGMENTS](index=29&type=section&id=U.S.%20SEGMENTS) Marmaxx and HomeGoods reported strong net sales and comparable store sales growth for Q2 fiscal 2026, with improved segment profit margins due to operational efficiencies and lower costs U.S. Segment Performance (Millions of US$) | Segment | Net Sales | Comp Sales | | :--- | :--- | :--- | | Marmaxx | $8,841 | +3% | | HomeGoods | $2,286 | +5% | - Marmaxx segment profit margin increased to **14.2%** in Q2 fiscal 2026 due to operational efficiencies[126](index=126&type=chunk) - HomeGoods segment profit margin increased to **10.0%** in Q2 fiscal 2026 due to lower supply chain costs and favorable merchandise margin[134](index=134&type=chunk) [Marmaxx](index=29&type=section&id=Marmaxx) Marmaxx net sales increased 5% to $8.8 billion in Q2 fiscal 2026, with comparable store sales up 3%, and segment profit margin improved to 14.2% due to operational efficiencies Marmaxx Segment Key Metrics (Millions of US$) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Net sales | $8,841 | +5% | | Segment profit margin | 14.2% | +0.1 ppt | | Comp sales | +3% | -2 ppt (vs Q2 FY25) | | Stores in operation | 2,701 | +70 stores | - The increase in comp sales was driven by an increase in average basket and customer transactions, with home comp sales outperforming apparel[125](index=125&type=chunk) [HomeGoods](index=30&type=section&id=HomeGoods) HomeGoods net sales grew 9% to $2.3 billion in Q2 fiscal 2026, with comparable store sales up 5%, and segment profit margin rose to 10.0% due to lower supply chain costs HomeGoods Segment Key Metrics (Millions of US$) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Net sales | $2,286 | +9% | | Segment profit margin | 10.0% | +0.9 ppt | | Comp sales | +5% | +3 ppt (vs Q2 FY25) | | Stores in operation | 1,028 | +36 stores | - The increase in comp sales was driven by an increase in customer transactions, with strongest growth in the South, Midwest and West regions[133](index=133&type=chunk) [FOREIGN SEGMENTS](index=31&type=section&id=FOREIGN%20SEGMENTS) TJX's foreign segments, TJX Canada and TJX International, both delivered strong net sales growth in Q2 fiscal 2026, with improved comparable store sales and segment profit margins Foreign Segment Performance (Millions of US$) | Segment | Net Sales | Comp Sales | Foreign Currency Impact | | :--- | :--- | :--- | :--- | | TJX Canada | $1,381 | +9% | Neutral | | TJX International | $1,893 | +5% | +6% | - TJX Canada's segment profit margin increased to **16.0%** in Q2 fiscal 2026 due to expense leverage and operational efficiencies[139](index=139&type=chunk) - TJX International's segment profit margin increased to **5.2%** in Q2 fiscal 2026 due to lower administrative costs, operational efficiencies, and favorable occupancy costs[145](index=145&type=chunk) [TJX Canada](index=31&type=section&id=TJX%20Canada) TJX Canada reported an 11% increase in net sales to $1.4 billion for Q2 fiscal 2026, with 9% comparable store sales growth and improved segment profit margin TJX Canada Segment Key Metrics (Millions of US$) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Net sales | $1,381 | +11% | | Segment profit margin | 16.0% | +1.0 ppt | | Comp sales | +9% | +7 ppt (vs Q2 FY25) | | Stores in operation | 582 | +10 stores | - The increase in comp sales was driven by an increase in customer transactions[138](index=138&type=chunk) [TJX International](index=32&type=section&id=TJX%20International) TJX International's net sales increased 13% to $1.9 billion in Q2 fiscal 2026, benefiting from positive foreign currency impact and 5% comparable store sales growth TJX International Segment Key Metrics (Millions of US$) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Net sales | $1,893 | +13% | | Segment profit margin | 5.2% | +0.8 ppt | | Comp sales | +5% | +4 ppt (vs Q2 FY25) | | Stores in operation | 823 | +17 stores | - The increase in comp sales was driven by an increase in customer transactions[143](index=143&type=chunk) [GENERAL CORPORATE EXPENSE](index=33&type=section&id=GENERAL%20CORPORATE%20EXPENSE) General corporate expense decreased to $182 million for Q2 fiscal 2026 due to favorable mark-to-market adjustments, but increased for the first six months General Corporate Expense (Millions of US$) | Period | August 2, 2025 | August 3, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | 13 Weeks Ended | $182 | $220 | $(38) | | 26 Weeks Ended | $397 | $373 | $24 | - The decrease in Q2 fiscal 2026 general corporate expense was primarily due to favorable mark-to-market adjustments on inventory and fuel hedges[149](index=149&type=chunk) [ANALYSIS OF FINANCIAL CONDITION](index=33&type=section&id=ANALYSIS%20OF%20FINANCIAL%20CONDITION) TJX maintains strong liquidity with $4.6 billion in cash and $1.5 billion in credit, funding operations, capital expenditures, share repurchases, and dividends - TJX held **$4.6 billion** in cash as of August 2, 2025, with **$1.5 billion** held by foreign subsidiaries[151](index=151&type=chunk) - Operating activities provided **$2.2 billion** in cash for the first six months of fiscal 2026, a decrease of **$181 million** from the prior year, mainly due to changes in merchandise inventories[153](index=153&type=chunk) - Investing activities used **$969 million** for the first six months of fiscal 2026, primarily for capital expenditures[154](index=154&type=chunk) - Capital spending for the full fiscal year 2026 is anticipated to be approximately **$2.1 billion to $2.2 billion**[155](index=155&type=chunk) - Financing activities used **$2 billion** for the first six months of fiscal 2026, including **$1.1 billion** for share repurchases and **$898 million** for cash dividends[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - TJX plans to repurchase approximately **$2 billion to $2.5 billion** of stock in fiscal 2026[157](index=157&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=34&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) No material changes to critical accounting estimates were reported from the prior fiscal year's Annual Report on Form 10-K [RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS](index=34&type=section&id=RECENTLY%20ISSUED%20ACCOUNTING%20PRONOUNCEMENTS) Refers to Note A for accounting standards discussion, indicating no new material pronouncements beyond those already covered [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in primary risk exposures or market risk management were reported from the prior fiscal year's Annual Report on Form 10-K [ITEM 4. Controls and Procedures](index=35&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of August 2, 2025, with no material changes to internal control over financial reporting - Disclosure controls and procedures were effective at the reasonable assurance level as of August 2, 2025[163](index=163&type=chunk) - No material changes in internal control over financial reporting were identified during the fiscal quarter ended August 2, 2025[164](index=164&type=chunk) [PART II - OTHER INFORMATION](index=35&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, other information, and exhibits [ITEM 1. Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) Refers to Note K for information on legal proceedings, indicating TJX is subject to various lawsuits and claims with immaterial accrued amounts [ITEM 1A. Risk Factors](index=36&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended February 1, 2025, were reported [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 fiscal 2026, TJX repurchased 4.1 million shares for $515 million, with approximately $2.4 billion remaining under existing repurchase programs Common Stock Repurchases (Shares / US$) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet be Purchased | | :--- | :--- | :--- | :--- | | May 4, 2025 - May 31, 2025 | 706,769 | $130.02 | $2,870,087,618 | | June 1, 2025 - July 5, 2025 | 1,749,307 | $124.96 | $2,651,485,857 | | July 6, 2025 - August 2, 2025 | 1,647,046 | $124.06 | $2,447,149,407 | | **Total** | **4,103,122** | | | - Approximately **$2.4 billion** remained available for repurchase under existing stock repurchase programs as of August 2, 2025[169](index=169&type=chunk) [ITEM 5. Other Information](index=36&type=section&id=ITEM%205.%20Other%20Information) No directors or officers adopted, materially modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter [ITEM 6. Exhibits](index=37&type=section&id=ITEM%206.%20Exhibits) Lists the exhibits filed with the Form 10-Q, including amendments to revolving credit agreements and certifications of the CEO and CFO - Exhibits include amendments to the 2029 and 2030 Revolving Credit Agreements and certifications of the CEO and CFO[171](index=171&type=chunk) [SIGNATURE](index=37&type=section&id=SIGNATURE) The report was duly signed on behalf of The TJX Companies, Inc. by John Klinger, Chief Financial Officer, on August 29, 2025

Group 1: Home Depot - Home Depot's shares rose over 3% after Q2 earnings release despite slightly missing sales and adjusted EPS, maintaining full-year guidance [2][4] - The company sources nearly 50% of its products internationally, making tariffs a significant issue, especially with current higher tariff rates [3] - The stock received another boost of nearly 4% following positive market reactions to the Federal Reserve's comments on potential rate cuts, which could increase housing affordability and demand for home improvement products [5][4] - Analysts raised their price targets for Home Depot after the earnings report, with only JPMorgan Chase lowering its target [6] Group 2: TJX Companies - TJX Companies experienced a nearly 3% gain in shares after a strong Q2 report, beating Wall Street expectations with a 9-cent increase in adjusted EPS and nearly 7% revenue growth [7][8] - Comparable sales increased by 4%, matching the prior year's quarter, and the company raised its full-year guidance for comparable sales growth to 3% from 2%-3% [8] - TJX expects full-year adjusted EPS to reach approximately $4.55, up nearly 4% from previous guidance, aided by lower-than-expected tariff costs [8][9] - The company plans to add around 130 stores this year and aims for over 1,800 locations in the long term [9] Group 3: Target - Target's Q2 results showed a nearly 1% decline in sales and nearly 2% drop in comparable sales, indicating a loss of market share to Walmart, which reported sales growth of 4.8% [11][12] - Despite beating estimates on sales and adjusted EPS, Target's guidance projected a low single-digit decline in sales for the full fiscal year, with steady adjusted EPS guidance [12] - Target's CEO Brian Cornell will vacate his position in February 2026, with COO Michael Fiddelke set to succeed him, amid business uncertainty that has led to an 8% decline in shares since the earnings report [13]