The TJX Companies, Inc. reported a net sales increase of 5% for the first quarter of fiscal 2026, reaching $13.1 billion compared to $12.5 billion in the same period last year. However, net income decreased to $1.036 billion, or $0.92 per diluted share, down from $1.070 billion, or $0.93 per diluted share, in the prior year. The company's pre-tax profit margin also saw a decline, dropping to 10.3% from 11.1% year-over-year. The increase in sales was attributed to a 3% rise in comparable store sales, alongside a 2% increase from non-comparable sales, with e-commerce contributing approximately 2% to total sales.
In terms of operational metrics, TJX's selling, general, and administrative (SG&A) expenses rose to 19.4% of net sales, up from 19.2% in the previous year. The cost of sales, including buying and occupancy costs, increased to 70.5%, reflecting a 0.5 percentage point rise compared to the prior year. The company reported a 7% increase in average per store inventories, which now includes Sierra stores in its calculations. The total number of stores and selling square footage also grew by 3% compared to the end of the first quarter of fiscal 2025.
Strategically, TJX has made significant investments, including a 49% stake in Multibrand Outlet Stores in Mexico for $193 million and a 35% stake in Brands for Less in the UAE and Saudi Arabia for $358 million. These investments are expected to enhance TJX's presence in international markets. The company continues to focus on its off-price retail model, which offers products at prices generally 20% to 60% below those of full-price retailers.
Looking ahead, TJX anticipates continued challenges from global economic conditions, including tariffs and their impact on merchandise sourcing. The company plans to return approximately $2 billion to $2.5 billion to shareholders through stock repurchases and dividends in fiscal 2026. As of May 3, 2025, TJX had $4.3 billion in cash and cash equivalents, with no outstanding short-term bank borrowings, indicating a strong liquidity position to support its operational and strategic initiatives.
About TJX COMPANIES INC /DE/
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