TJX Companies posted a strong second quarter, with net sales rising 5% to $15.2 billion from $14.4 billion a year earlier and comparable sales up 4%. For the first six months, sales increased 7% to $29.5 billion from $27.5 billion, driven by a 5% comp gain and 2% from non-comp sales.
Diluted earnings per share climbed to $1.36 from $1.10 in the quarter. Pre-tax profit margin widened to 13.3% from 11.4%, while operating leverage showed up in the cost structure: cost of sales, including buying and occupancy costs, fell to 66.6% of sales from 69.3%. SG&A rose to 20.3% of sales from 19.5%.
A major factor in the quarter was tariff relief. TJX said it received $331 million of IEEPA-related tariff refunds during the quarter, including immaterial interest, and recognized the benefit in cost of sales. Against that, it recorded $112 million of incremental incentive compensation and discretionary bonus expense tied to the refunds. The net benefit was $219 million in the quarter.
TJX said it has paid about $490 million in aggregate IEEPA-related tariffs. As of August 1, 2026, it had not recorded a receivable for any additional potential refunds.
Store growth continued. The company said both store count and selling square footage were up about 3% versus a year earlier. It also lifted its long-term global store target to 7,500 locations, including increases of 300 stores for Marmaxx and 200 for HomeGoods.
Inventory was also higher: consolidated average per-store inventories, including distribution centers and excluding e-commerce, were up 2% at quarter end.
TJX returned $1.3 billion to shareholders in the quarter through dividends and share repurchases.
Below the top line, interest income improved. Net interest income was $31 million in the quarter, compared with $27 million a year earlier, as interest income rose to $50 million from $45 million. For the first six months, net interest income was $66 million versus $57 million.
E-commerce remained a small piece of the business, at about 2% of total sales in both the quarter and the first half. Foreign currency shaved 1% off quarterly sales growth, while the first half saw a neutral currency impact.
The company said home comp sales outpaced apparel comp sales in both the quarter and six-month period, and that higher average basket and more customer transactions drove the comp gains. As a result of these announcements, the company's shares have moved 0.34% on the market, and are now trading at a price of $134.68. For more information, read the company's full 10-Q submission here.
