Company: TJX
Filing Date: 2025-12-02
Form Type: 10-Q
Source: 0000109198-25-000061
Chunk: 94

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-12-02
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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 fiscal 2026 was 12.7%, a 0.4 percentage point increase compared with 12.3% in the third quarter of fiscal 2025.

–Our cost of sales, including buying and occupancy costs, ratio for the third quarter of fiscal 2026 was 67.4%, a 1.0 percentage point decrease compared with 68.4% in the third quarter of fiscal 2025.

–Our selling, general and administrative (“SG&A”) expense ratio for the third quarter of fiscal 2026 was 20.1%, a 0.6 percentage point increase compared with 19.5% in the third quarter of fiscal 2025.

–Our consolidated average per store inventories, including inventory on hand at our distribution centers (which excludes inventory in transit) and excluding our e-commerce sites, were up 8% at the end of the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. Starting in the first quarter of fiscal 2026, Sierra stores are included in the consolidated average per store inventories. 

–During the third quarter of fiscal 2026, we returned $1.1 billion to our shareholders through share repurchases and dividends.

Recent Events and Trends

Global Economic Conditions and Tariffs

We continue to closely monitor changes in international trade relations, economic and monetary policies, and legislation and regulations including those related to tariffs on imports from China and other countries. While we have been, and believe we can continue to be, successful in mitigating tariff pressures, tariffs have led to significant volatility in the global economy. The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business continues to be uncertain. Our buying organization’s ability to execute our merchandise sourcing model to offset the effects of the tariffs is a key factor. We are continuing to implement and consider additional measures that seek to mitigate the impact of tariffs. However, the overall impact depends on a range of factors, including trade negotiations between the U.S. and other countries, responses of other countries, exceptions that could be granted, and cost of alternative sources of merchandise. It is possible that some of the actions we might take to adapt could increase risk, drive a modification of our operations that might be time-consuming or expensive, or possibly impact pricing on certain items, which could impact our business. Uncertainty remains regarding the continued impact on our direct imports, indirect imports, vendor and competitor pricing, consumer demand, tariff pass-throughs, and reciprocal