The TJX Companies, Inc. Q4 FY2026 earnings call

• Acknowledged global associates. - Fourth quarter results exceeded expectations; comp sales up 5% across divisions. - Full year net sales over $60B; comp sales up 5%; profitability and EPS grew. - Teams transitioned stores post-holiday well; confident in merchandise mix. - Inventory good; liquidity strong; returned $4.3B to shareholders. - Divisions performed strongly; key strengths include value delivery, wide customer strategy, store base growth potential, flexibility, and talent/culture.

Fourth quarter: Net sales grew to $17.7 billion, 9% increase; comp sales up 5%. Full year: Net sales surpassed $60 billion; comp sales up 5%; adjusted pretax profit margin 11.7%, up 20 basis points; adjusted gross margin 31%, up 40 basis points. Divisional: Marmaxx full year sales $36.6 billion, comp sales up 4%; HomeGoods annual sales over $10 billion, comp sales up 5%; TJX Canada full year sales $5.6 billion, comp sales up 7%; TJX International full year sales $8 billion, comp sales up 4%.

• Full year '27: Comp sales 2%-3% growth; consolidated sales $62.7M - $63.3M, up 4%-5%; pretax profit margin 11.7%-11.8%; gross margin 31.1%-31.2%; SG&A 19.5%; net interest income $76M; EPS $4.93 - $5.02. - First quarter '27: Comp sales 2%-3% increase; consolidated sales $13.8B - $13.9B, up 5%-6%; pretax profit margin 10.3%-10.4%; gross margin 29.9%-30%; SG&A 19.8%; net interest income $22M; EPS $0.97 - $0.99. - '27 capital: CapEx $2.2B - $2.3B; add 146 net new stores; 540 remodels; relocate ~40 stores. - Cash: Dividend increase expected; buy back $2.5B - $2.75B of stock.

• Tariff uncertainty impact. - Shrink future wins may not be as great. - Macro environment challenges.

Q: Update on pricing, customer reaction, demographics; A: Pricing selective based on comp; strong customer value perception; balanced product appeals to various demographics.

Q: Offense globally, first quarter start; A: Aggressive marketing, brand pursuit, store improvements, staffing; first quarter strong due to execution and product mix.

Q: SG&A leverage, traffic vs ticket; A: Q4 SG&A less leverage due to incentive accruals; transactions and basket up, HomeGoods transactions flat prior to storm but up for year; confident in 2%-3% comp via mix.

Q: AUR, margin improvement; A: Can't parse AUR; margin improvement due to buying flexibility, glutted market, liquidity, tariff navigation.

Q: HomeGoods margin, gross margin drivers; A: HomeGoods improved margins with sales, merchandise, freight, shrink, efficiencies; gross margin includes shrink, leverage, freight.

Q: Macro strategy, marketing leverage; A: Aggressive marketing, team tenure, new store opportunities; marketing plays into top line and share.

Q: Tariffs, shrink; A: Uncertainty on vendors/inventory; shrink back to pre-COVID, future wins less but teams continue.

Q: HomeGoods comp, new categories; A: HomeGoods comp strong across wide categories, going after less competitive ones with good values.