TJX(US:TJX)2025-12-02 16:19Financial Performance - Net sales for the third quarter of fiscal 2026 increased by 7% to $15.1 billion compared to $14.1 billion in the same quarter last year[92]. - Consolidated comparable sales (comp sales) rose by 5% for the third quarter of fiscal 2026, driven by a higher average basket and increased customer transactions[96]. - Diluted earnings per share for the third quarter of fiscal 2026 were $1.28, up from $1.14 in the third quarter of fiscal 2025[92]. - Net income for Q3 FY2026 was $1.4 billion, or $1.28 per diluted share, compared to $1.3 billion, or $1.14 per diluted share, in Q3 FY2025[116]. - Net sales for the nine months ended November 1, 2025, totaled $42.6 billion, reflecting a 7% increase compared to $40 billion in the same period last year[95]. - For the first nine months of FY2026, net income was $3.7 billion, or $3.30 per diluted share, compared to $3.5 billion, or $3.03 per diluted share, in the same period of FY2025[117]. Cost and Expenses - The cost of sales ratio decreased to 67.4% for the third quarter of fiscal 2026, down 1.0 percentage points from 68.4% in the same quarter last year[108]. - Selling, general and administrative (SG&A) expenses as a percentage of net sales increased to 20.1% for the third quarter of fiscal 2026, up 0.6 percentage points from 19.5% in the prior year[110]. - General corporate expenses rose to $216 million in the third quarter of fiscal 2026, compared to $150 million in the same quarter of fiscal 2025, primarily due to higher administrative costs[148][149]. Profit Margins - The pre-tax profit margin for the third quarter of fiscal 2026 was 12.7%, a 0.4 percentage point increase from 12.3% in the third quarter of fiscal 2025[92]. - Segment profit margin for Marmaxx increased to 14.9% in Q3 FY2026 from 14.3% in Q3 FY2025, attributed to favorable merchandise margins and expense leverage[126]. - Segment profit margin for HomeGoods rose to 13.5% in Q3 FY2026 from 12.3% in Q3 FY2025, driven by favorable merchandise margins and lower supply chain costs[133]. - Segment profit margin for TJX Canada decreased to 14.9% in Q3 FY2026 from 15.1% in Q3 FY2025, primarily due to higher capitalized inventory costs and payroll expenses[138]. - Segment profit margin improved to 9.2% in the third quarter of fiscal 2026, up from 7.3% in the same period last year, due to higher merchandise margins and favorable foreign exchange impacts[146]. Shareholder Returns - The company returned $1.1 billion to shareholders through share repurchases and dividends during the third quarter of fiscal 2026[92]. - The company repurchased 13.4 million shares for $1.7 billion in the first nine months of fiscal 2026, similar to the 15.4 million shares repurchased for the same amount in the prior year[157]. - Quarterly dividends declared were $0.425 per share for the first nine months of fiscal 2026, compared to $0.375 per share in the same period of fiscal 2025, totaling $1.4 billion in cash payments[159]. Inventory and Store Operations - The number of stores in operation increased by approximately 3% as of November 1, 2025, compared to the end of the third quarter of fiscal 2025[97]. - Average per store inventories increased by 8% at the end of the third quarter of fiscal 2026 compared to the same period last year[92]. Tax and Cash Position - The effective income tax rate decreased to 24.7% for Q3 FY2026 from 25.3% in Q3 FY2025, primarily due to increased tax benefits from share-based compensation and federal tax credits[115]. - As of November 1, 2025, the company held $4.6 billion in cash, with $1.6 billion held by foreign subsidiaries[151]. Capital Expenditures and Cash Flow - Capital expenditures for the first nine months of fiscal 2026 were primarily for store improvements and renovations, with anticipated full-year spending of approximately $2.1 billion to $2.2 billion[155]. - Operating activities generated net cash inflows of $3.7 billion for the nine months ended November 1, 2025, an increase of $305 million compared to the same period in fiscal 2025[153].