TJX Companies Inc Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
TJX Companies Inc's Q3 2026 earnings call, held on November 19, 2025, highlighted strong financial performance, driven by robust comp sales growth across all divisions and geographies. Management raised full-year guidance for sales and profitability and expressed confidence in continued market share gains. Discussions also covered inventory levels, capital allocation, and strategies for the upcoming holiday season.
Key Financial Results
Consolidated comp sales increased by 5%, exceeding expectations.
Pre-tax profit margin was 12.7%, up 40 basis points year-over-year and above plan.
Gross margin increased by 100 basis points versus last year.
Diluted earnings per share (EPS) of $1.28, a 12% increase year-over-year and above expectations.
Business Segment Results
Marmaxx comp sales grew by an outstanding 6%, with strong increases in both apparel and home businesses.
Marmaxx's segment profit margin was 14.9%, up 60 basis points versus last year.
HomeGoods comp sales increased 5%.
HomeGoods' segment profit margin improved to 13.5%, up 120 basis points versus last year.
TJX Canada comp sales increased an outstanding 8%.
TJX Canada's segment profit margin on a constant currency basis was 14.9%, down 20 basis points versus last year, driven by unfavorable transactional foreign exchange.
TJX International comp sales grew 3% with increases in both Europe and Australia.
TJX International's segment profit margin on a constant currency basis increased to 9.2%, up a very strong 190 basis points versus last year.
Capital Allocation
Returned $1.1 billion to shareholders through buyback and dividend programs in the third quarter.
Reinvesting in the growth of the business.
Industry Trends and Dynamics
Consumers are expected to continue seeking value.
Availability of quality branded merchandise is exceptional.
Appeal of in-store shopping is here to stay.
Competitive Landscape
The company believes its value proposition sets it apart from other retailers.
TJX aims to maintain a price gap against competitors' promotional prices.
The company is positioned to be a top destination for gifts, offering options across good, better, and best brands.
Macroeconomic Environment
The company successfully mitigated tariff pressures in the third quarter.
Assumes current tariff levels on imports into the US will remain in place for the remainder of the year.
Growth Opportunities and Strategies
The company plans to enter Spain in the spring of 2026.
Long-term store target of 7,000 stores in current countries and Spain.
The company will flow fresh selections to stores and online multiple times a week throughout the holiday season.
Holiday marketing campaigns are launched across various media channels, emphasizing digital.
Financial Guidance and Outlook
Q4 2026 overall comp sales are planned to increase 2% to 3%.
Q4 2026 consolidated sales are expected to be in the range of $17.1 billion to $17.3 billion.
Q4 2026 pre-tax profit margin is expected to be in the range of 11.7% to 11.8%, up 10 to 20 basis points versus last year's 11.6%.
Q4 2026 diluted earnings per share are expected to be in the range of $1.33 to $1.36, up 8% to 11% versus last year's $1.23.
Full year 2026 overall comp sales are now expected to increase by 4%.
Full year 2026 consolidated sales guidance increased to a range of $59.7 billion to $59.9 billion.
Full year 2026 pre-tax profit margin guidance increased to 11.6%, up 10 basis points versus last year's 11.5%.
Full year 2026 diluted earnings per share are expected to be in the range of $4.63 to $4.66, up 9% versus last year's diluted earnings per share of $4.26.
