TJX Q4 Earnings and Revenues Beat Estimates, Sales Increase 9% Y/Y

The TJX Companies, Inc. TJX posted fourth-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter.

TJX's Quarterly Metrics: Key Insights

The TJX Companies’ earnings per share (EPS) were $1.43, up 16% from the year-ago quarter. The metric also beat the Zacks Consensus Estimate of $1.38 per share.

The TJX Companies, Inc. Price, Consensus and EPS Surprise

The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote

Net sales came in at $17,743 million, registering an increase of 9% year over year and surpassing the Zacks Consensus Estimate of $17,453 million.

In the Marmaxx (the United States) division, the company’s net sales were $10,655 million, up 7% year over year. Net sales amounted to $3,093 million, up 8% year over year, in the HomeGoods (the United States) division. TJX Canada’s net sales were $1,612 million, up 11% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $2,383 million, up 15% year over year.

The company witnessed a 5% jump in consolidated comparable store sales, supported by strong performance in every division. Comparable store sales rose 5% at Marmaxx (the United States), 6% at HomeGoods (the United States), 7% at TJX Canada and 4% at TJX International (Europe & Australia).

The TJX Companies’ adjusted pretax profit margin was 12.2%, up 0.6 percentage points from the year-ago quarter’s level. The increase is driven by lower-than-expected inventory shrink expenses and operating leverage from stronger-than-planned sales. These gains were partially offset by elevated incentive compensation accruals.

The adjusted gross profit margin was 31.1%, up 0.6 percentage points year over year, mainly driven by an elevated merchandise margin and expense leverage on strong sales growth. These gains were partially offset by  unfavorable inventory hedges.

The company’s adjusted selling, general and administrative costs, as a percent of sales, were 19.1%, a 0.1 percentage point decrease.

TJX’s Financial Health Snapshot

In fiscal 2026, this Zacks Rank #2 (Buy) company increased its total store count by 129, reaching 5,214.

The TJX Companies ended the quarter with cash and cash equivalents of $6.2 billion, long-term debt of $1.9 billion and shareholders’ equity of $10.2 billion. It generated an operating cash flow of $6.9 billion in fiscal 2026.

In the fiscal fourth quarter, the company returned $1.26 billion to shareholders, including $784 million used to repurchase 5.1 million of its shares and $472 million paid in dividends. For fiscal 2026, the company returned a total of $4.3 billion to its shareholders, repurchasing 18.5 million shares for $2.5 billion and distributing $1.8 billion in dividends.

The company announced its intention to increase the regular quarterly dividend on its common stock to 48 cents per share. The dividend is expected to be declared in March and paid in June 2026, representing a 13% increase over the most recent quarterly dividend.

It also announced plans to repurchase approximately $2.50 billion to $2.75 billion of TJX stock in the fiscal year ending Jan. 30, 2027. With $1.1 billion remaining under its existing authorization at the end of fiscal 2026, the board approved a new stock repurchase program authorizing up to an additional $3 billion in share repurchases from time to time.

What to Expect From TJX Moving Forward?

For fiscal 2027, the company projects consolidated comparable sales growth of 2% to 3%, a pretax profit margin of 11.7% to 11.8% and earnings per share in the range of $4.93 to $5.02.

For the first quarter of fiscal 2027, the company expects consolidated comparable sales to increase 2% to 3%, a pretax profit margin in the range of 10.3% to 10.4% and earnings per share of 97 cents to 99 cents.

Shares of the company have gained 3% in the past three months compared with the industry’s growth of 11.3%.

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The consensus estimate for Dollar General’s current fiscal-year sales and earnings implies an increase of 4.8% and 9.6%, respectively, from the prior-year levels. DG delivered a trailing four-quarter earnings surprise of 22.9%, on average.

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The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and earnings implies an increase of 6.4% and 2.4%, respectively, from the prior-year levels.

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The Zacks Consensus Estimate for Williams-Sonoma’s current fiscal-year sales indicates growth of 1.9% from the previous year’s reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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