Company: TJX
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0000109198-25-000054
Chunk: 30

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 comparison of merchandise margin as well as “foreign currency gains and losses” on transactions that are denominated in a currency other than the operating division's local currency. These two items can impact segment margin comparison of our foreign divisions and we have highlighted them when they are meaningful to understanding operating trends.

Cost of Sales, Including Buying and Occupancy Costs

Cost of sales, including buying and occupancy costs, as a percentage of net sales was 69.3% for the second quarter of fiscal 2026, a decrease of 0.3 percentage points compared to 69.6% for the second quarter of fiscal 2025. The decrease in the cost of sales ratio, including buying and occupancy costs, for the second quarter of fiscal 2026 was attributable to the favorable year-over-year impact related to the mark-to-market adjustments on inventory and fuel hedges.

Cost of sales, including buying and occupancy costs, as a percentage of net sales was 69.9% for the first six months of fiscal 2026, an increase of 0.1 percentage points compared to 69.8% for the first six months of fiscal 2025. The increase in the cost of sales ratio, including buying and occupancy costs, for the first six months of fiscal 2026 was due to increased occupancy costs.

For both the second quarter and first six months of fiscal 2026, merchandise margin was flat despite the increased tariff costs.

Selling, General and Administrative Expenses

SG&A expenses, as a percentage of net sales, was 19.5% for the second quarter of fiscal 2026, a decrease of 0.3 percentage points compared to 19.8% for the second quarter of fiscal 2025. The decrease in the SG&A ratio for the second quarter of fiscal 2026 was due to operational efficiencies in stores partially offset by incremental store wages.

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SG&A expenses, as a percentage of net sales, was 19.5% for the first six months of fiscal 2026, flat compared to the first six months of fiscal 2025.

Interest (Income) Expense, net 

The components of interest (income) expense, net are summarized below: Thirteen Weeks EndedTwenty-Six Weeks EndedIn millionsAugust 2,2025August 3,2024August 2,2025August 3,2024Interest expense$19 $20 $39 $39 Capitalized interest(1)(0)(3)(0)Interest (income