US' TJX delivers strong Q3 FY26 growth; raises full-year guidance

Marmaxx led growth in the US with a 6 per cent rise in comparable sales. TJX Canada delivered a strong 8 per cent uplift, with gains across Winners, Marshalls, and HomeSense. In Europe and Australia, TJX International recorded a 3 per cent increase, cycling a stronger 7 per cent rise in the prior year.

Marmaxx generated $9.04 billion in Q3 FY26, up 7 per cent YoY. HomeGoods sales rose 8 per cent to $2.54 billion. TJX Canada’s sales climbed 8 per cent to $1.49 billion, or 10 per cent on a constant currency basis. TJX International posted $2.05 billion in sales, up 9 per cent, reflecting resilient demand in Europe and Australia. Total consolidated sales reached $15.12 billion, reflecting a 7 per cent improvement, TJX Companies said in a press release.

Pretax profit margin for Q3 was 12.7 per cent, up from 12.3 per cent in the same period last fiscal and well above the top end of the company’s expectations. Gross margin expanded by 1 percentage point (pp) to 32.6 per cent, driven by higher merchandise margins and expense leverage from above-plan sales.

Selling, general and administrative (SG&A) expenses rose to 20.1 per cent of sales, primarily due to wage investments, higher payroll costs, incentive compensation, and a contribution to the TJX Foundation. Net interest income slightly reduced pretax margin by 0.1 percentage point.

The company attributed its better-than-expected profit margin to lower freight costs, strong merchandise margins, and greater operating efficiency.

The operating cash flow for the quarter totalled $1.5 billion, and TJX ended the period with $4.6 billion in cash. During Q3 FY26, the company returned $1.1 billion to shareholders—repurchasing 4.2 million shares for $594 million and distributing $472 million in dividends.

TJX continues to expand its global footprint. During the quarter, the retailer opened a net 57 new stores, ending Q3 with 5,191 locations across the US, Canada, Europe, and Australia. Total square footage increased by 1 per cent to 135.7 million square feet. Growth was led by Sierra and Marshalls in the US and Winners in Canada, alongside continued expansion of TK Maxx stores in Europe and Australia, added the release.

For the first nine months (9M) of FY26, net sales increased 7 per cent to $42.6 billion. Comparable sales rose 4 per cent, supported by steady customer traffic across banners. Net income for the period stood at $3.7 billion, while diluted earnings per share rose 9 per cent to $3.30 compared with $3.03 in the same period last year. Total shareholder returns in in 9M stood at $3.1 billion, including $1.7 billion in buybacks and $1.4 billion in dividends.

For the fourth quarter (Q4) of FY26, TJX expects comparable sales to rise between 2 and 3 per cent, assuming current US tariff levels remain unchanged. Pretax profit margin is projected between 11.7 and 11.8 per cent, while diluted EPS is forecast in the range of $1.33 to $1.36.

For the full fiscal, the company now anticipates a 4 per cent increase in consolidated comparable sales, pretax profit margin of 11.6 per cent, and diluted EPS of $4.63 to $4.66—representing a 9 per cent rise from last year.

ALCHEMPro News Desk (SG)