TJX(TJX)

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3 Tariff-Proof Retailers Making New All-time Highs
MarketBeat· 2025-09-01 15:31
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]
美国关税成本全面转嫁至消费端!零售巨头集体预警新一轮涨价潮
智通财经网· 2025-09-01 00:22
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]
TJX(TJX) - 2026 Q2 - Quarterly Report
2025-08-29 15:53
[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
Retail Roundup: Key Winners and Losers After Q2 Earnings
MarketBeat· 2025-08-26 17:21
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]
Has The TJX Companies (TJX) Outpaced Other Retail-Wholesale Stocks This Year?
ZACKS· 2025-08-26 14:41
Group 1 - TJX is a member of the Retail-Wholesale sector, which includes 202 individual stocks and holds a Zacks Sector Rank of 10 [2] - The Zacks Rank is a stock-picking model that emphasizes earnings estimates and revisions, with TJX currently holding a Zacks Rank of 2 (Buy) [3] - The consensus estimate for TJX's full-year earnings has increased by 2.5% over the past quarter, indicating improved analyst sentiment [3] Group 2 - TJX has returned 12.2% year-to-date, outperforming the average gain of 8.1% in the Retail-Wholesale group [4] - In comparison, Ulta Beauty has achieved a year-to-date return of 20.6%, also outperforming the sector [4] - TJX belongs to the Retail - Discount Stores industry, which includes 8 stocks and currently ranks 101 in the Zacks Industry Rank, with an average gain of 3.9% this year [5] Group 3 - The Retail - Miscellaneous industry, which includes Ulta Beauty, has 16 stocks and is ranked 72, with an industry gain of 11% since the beginning of the year [6] - Investors interested in Retail-Wholesale stocks should monitor both TJX and Ulta Beauty for their solid performance [6]
TJX Stock Price Hits Fresh High, Signals More Highs to Follow
MarketBeat· 2025-08-22 20:25
Core Viewpoint - TJX Companies' stock price action post-Q2 earnings release shows mixed signals, with a significant pre-market surge followed by an intraday sell-off, indicating potential selling pressure despite positive underlying fundamentals [1][2]. Financial Performance - TJX Companies reported Q2 net revenue of $14.4 billion, a 6.9% increase year-over-year, surpassing consensus estimates by 160 basis points and outperforming industry peers like Target by 700 basis points [6][7]. - The company experienced a 4% increase in comparable sales, with growth across all segments: Marmaxx at 3%, Home Goods at 5%, TJX Canada at 9%, and International business at 5% [7]. - Adjusted earnings per share increased by 15%, amounting to approximately $1.2 billion, with operating cash flow reported at $1.8 billion [8]. Market Outlook - Analysts maintain a bullish outlook on TJX Companies, with a 12-month stock price forecast averaging $147.58, and a high forecast of $172.00 [5][6]. - The company has expanded its adjusted EPS outlook to a low of $4.52, reflecting a 6% gain compared to the previous year, while comparable sales for the year are expected to align with prior forecasts near 3% [9]. Capital Return and Dividend - TJX Companies has a dividend yield of 1.25%, with an annual dividend of $1.70 and a payout ratio of 40%, indicating a strong commitment to returning capital to shareholders [11][13]. - The company has a track record of increasing dividends at a double-digit pace, supported by robust earnings forecasts [13]. Balance Sheet Strength - The balance sheet shows a 13% increase in shareholder equity, with increased current and total assets, despite a reduction in cash due to inventory build [12].
TJX Threads The Needle: Analyst Says Strong Earnings, Smart Tariff Strategies Keep Growth On Track
Benzinga· 2025-08-21 19:46
TJX Companies Inc TJX reported strong second-quarter results, earnings exceeding expectations, "driven by solid operational execution and sales as well as a lower tariff impact than expected," according to Telsey Advisory Group. TJX Companies is poised to benefit from the heightened focus of consumers on value across income levels, he further stated. The TJX Companies Holding Analyst: Analyst Dana Telsey maintained an Outperform rating, while raising the price target from $150 to $155. TJX Price Action: Sha ...
TJX Companies: Strong Results And Now Even More Expensive
Seeking Alpha· 2025-08-20 20:26
Core Viewpoint - The TJX Companies, Inc. (NYSE: TJX) was reviewed following its fiscal Q2 2025 results, indicating that the stock was trading around $118 and appeared marginally overvalued based on a custom Free Cash Flow model [1]. Company Analysis - The stock price of TJX was approximately $118 at the time of the review, suggesting a potential overvaluation [1]. - The analysis is based on a custom Free Cash Flow model, which is a critical metric for assessing the company's financial health and investment potential [1]. Analyst Background - The analyst has a master's degree in Analytics and a bachelor's degree in Accounting, with over 10 years of experience in the investment arena, starting as an analyst and progressing to a management role [1]. - Dividend investing is highlighted as a personal interest of the analyst, indicating a focus on long-term investment strategies [1].
TJX's Q2 Earnings and Sales Beat Estimates, Comparable Sales Up 4%
ZACKS· 2025-08-20 18:06
Core Insights - The TJX Companies, Inc. reported second-quarter fiscal 2026 results with both top and bottom lines exceeding expectations and showing year-over-year growth [1][10] Financial Performance - Earnings per share (EPS) reached $1.10, a 15% increase from the previous year, surpassing the Zacks Consensus Estimate of $1.01 [2][10] - Net sales totaled $14.4 billion, reflecting a 7% year-over-year increase and exceeding the Zacks Consensus Estimate of $14.1 billion [2][10] Segment Performance - Marmaxx (United States) division net sales were $8,841 million, up 5% year over year [3] - HomeGoods (United States) division net sales amounted to $2,286 million, a 9% increase year over year [3] - TJX Canada reported net sales of $1,381 million, an 11% increase from the prior year [3] - TJX International (Europe & Australia) net sales were $1,893 million, up 13% year over year [3] Comparable Store Sales - Consolidated comparable store sales increased by 4%, driven by higher customer transactions [4] - Comparable store sales rose 3% at Marmaxx (United States), 5% at HomeGoods (United States), 9% at TJX Canada, and 5% at TJX International [4] Profitability Metrics - The pretax profit margin was 11.4%, up 0.5 percentage points from the previous year [5] - Gross profit margin improved to 30.7%, a 0.3 percentage point increase year over year [5] - Selling, general and administrative (SG&A) costs as a percentage of sales decreased to 19.5%, down 0.3 percentage points due to operational efficiencies [5] Financial Health - The company ended the quarter with cash and cash equivalents of $4.6 billion and long-term debt of $2.9 billion [6] - Shareholders received $1 billion through share repurchases and dividends during the quarter [7] Inventory and Market Position - Consolidated inventories per store increased by 10% year over year, indicating strong merchandise availability [8] Future Guidance - For fiscal 2026, the company expects consolidated comparable store sales growth of 3% and EPS between $4.52 and $4.57, reflecting a 6-7% increase from the previous year [11] - For the third quarter of fiscal 2026, management anticipates comparable store sales growth of 2-3% and EPS in the range of $1.17-$1.19, a year-over-year increase of 3-4% [12]
Final Trades: Salesforce, American Express and TJX Companies
CNBC Television· 2025-08-20 17:21
[Music] And we are back on halftime with our final trades. Brenn Talkington, you're up first. >> Let's let's roll a sales force.Like the technicals here. The market gets it wrong all the time. AI is going to make this company stickier and stickier.>> Carrie, >> I like that trade. Brent, I'm giving you American Express. AXP.It seems to be hitting an inflection point on the stock. It's well below the market multiple. >> This is the shock.Boston based company right there. >> Boston based company. >> Yeah.Right ...