Company: TJX
Filing Date: 2025-12-02
Form Type: 10-Q
Source: 0000109198-25-000061
Chunk: 84

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-12-02
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 160 Marshalls111 109 Total588 576 Selling square footage at end of period (in millions):Winners7 7 HomeSense3 3 Marshalls2 2 Total12 12 

Net Sales

Net sales for TJX Canada were $1.5 billion for the third quarter of fiscal 2026, an increase of 8%, compared to $1.4 billion for the third quarter of fiscal 2025. This increase in the third quarter reflects a 8% increase in comp sales, a 2% increase in non-comp sales, partially offset by a negative foreign currency impact of 2%.

Net sales for TJX Canada were $4 billion for the first nine months of fiscal 2026, an increase of 7%, compared to $3.7 billion for the first nine months of fiscal 2025. This increase in the first nine months reflects a 7% increase in comp sales, a 3% increase in non-comp sales, partially offset by a negative foreign currency impact of 3%.

The increase in comp sales for both the third quarter and first nine months of fiscal 2026 was driven by an increase in customer transactions.

Segment Profit Margin

Segment profit margin decreased to 14.9% for the third quarter of fiscal 2026 compared to 15.1% for the same period last year. This decrease for the third quarter of fiscal 2026 was primarily driven by capitalized inventory costs, higher incentive compensation costs and incremental store wage and payroll costs. These costs were partially offset by expense leverage on higher comp sales and higher merchandise margin. Within merchandise margin, lower markon, driven by the negative impact of transactional foreign exchange on the cost of merchandise, was more than offset by lower freight costs.

Segment profit margin decreased to 14.1% for the first nine months of fiscal 2026 compared to 14.3% for the same period last year. This decrease for the first nine months of fiscal 2026 was primarily driven by lower merchandise margin, capitalized inventory costs and incremental store wage and payroll costs. Merchandise margin reflects lower markon which includes the negative impact of transactional foreign exchange on the cost of merchandise partially offset by lower freight costs. These costs were partially offset by expense leverage on higher comp sales.

For both periods presented, capitalized inventory costs reflect a greater portion of our buying and distribution costs being expensed in the current year compared to the respective periods in the prior year.

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