The TJX Companies, Inc. has reported its Q4 and full-year FY26 results, highlighting impressive growth and profitability. In Q4, the company's consolidated comparable sales increased by 5%, exceeding their plan. This growth was accompanied by a pretax profit margin of 13.5%, representing a substantial increase of 1.9 percentage points from the previous year. Adjusted pretax profit margin for Q4 was 12.2%, up 0.6 percentage points from the previous year and well above the company’s plan.
The company's diluted earnings per share for Q4 were $1.58, marking a significant 28% increase from the previous year. Adjusted diluted earnings per share for Q4 were $1.43, reflecting a notable 16% increase from the prior year and surpassing the company’s plan.
For the full year FY26, consolidated comparable sales increased by 5%, surpassing the company’s plan. The pretax profit margin for FY26 was 12.1%, showing an increase of 0.6 percentage points from the previous year. Adjusted pretax profit margin for FY26 was 11.7%, up 0.2 percentage points from the prior year and above the company’s plan. The company's diluted earnings per share for FY26 were $4.87, demonstrating a 14% increase from the previous year. Adjusted diluted earnings per share for FY26 were $4.73, reflecting an 11% increase from the prior year and surpassing the company’s plan.
In terms of shareholder distributions, the company returned a total of $4.3 billion to shareholders in FY26 through share repurchases and dividends. Looking ahead, the company expects to increase its dividend by 13% and buy back $2.50 to $2.75 billion of stock in FY27.
The company's first quarter of fiscal 2027 outlook includes plans for consolidated comparable sales to be up 2% to 3%, pretax profit margin to be in the range of 10.3% to 10.4%, and diluted earnings per share to be in the range of $.97 to $.99. For the full year fiscal 2027, the company is planning consolidated comparable sales to be up 2% to 3%, pretax profit margin to be in the range of 11.7% to 11.8%, and diluted earnings per share to be in the range of $4.93 to $5.02.
It's important to note that the company's impressive performance was achieved despite challenges such as a net benefit from a litigation settlement related to credit card interchange fees and related expenses. This net benefit impacted various financial metrics including gross profit margin, SG&A costs, pretax profit margin, and diluted earnings per share.
As a result of these announcements, the company's shares have moved 0.78% on the market, and are now trading at a price of $157.38. For more information, read the company's full 8-K submission here.
