TJX Companies (TJX) Shares Slide Despite Strong Q4 Sales and Profit Beat

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TLDR

  • TJX exceeded Q4 sales and margin expectations, but its shares dropped during the trading day.
  • FY26 results were robust, though the FY27 same-store sales forecast tempers expectations.
  • Profitability rose as inventory shrinkage decreased and operating leverage took effect.
  • $6.2 billion in cash and significant shareholder returns, plus new FY27 share repurchase plans.
  • Inventory increased heading into spring, with guidance indicating steady growth ahead.

Shares of TJX Companies (TJX) traded down to $155.15 as the trading day went on, falling 1.59% even with a strong earnings report. The market maintained downward pressure, as the chart showed a distinct intraday drop. The company announced strong Q4 and full-year results that beat its internal targets.

TJX Stock Card

Q4 Results Show Solid Sales Growth and Higher Profit Margins

TJX posted fourth-quarter net sales of $17.7 billion, a 9% increase from the prior year. Same-store sales grew 5% company-wide, with every division contributing to the gain. Pretax profit margin hit 13.5%, while the adjusted margin improved to 12.2%.

Diluted earnings per share (EPS) were $1.58, with adjusted EPS at $1.43. Both metrics rose significantly from the previous year and exceeded the company’s internal projections. Reduced shrinkage costs and better expense leverage boosted profitability in the quarter.

Gross profit margin was 30.9%, with the adjusted margin at 31.1%. Merchandise margins widened and operating leverage improved as sales topped forecasts. Selling, general, and administrative (SG&A) costs as a share of sales fell, aided by a settlement benefit that supported the final results.

Full-Year FY26 Performance Signals Broad Strength Across Divisions

For the full FY26 year, TJX recorded net sales of $60.4 billion, a 7% increase. Same-store sales climbed 5% for the year, with every major brand posting steady gains. Full-year diluted EPS was $4.87, and adjusted EPS reached $4.73.

Full-year pretax profit margin hit 12.1%, with the adjusted margin at 11.7%. Reduced inventory shrinkage costs provided support and kept merchandise margins stable. SG&A costs as a percentage of sales stayed within the expected range.

Marmaxx, HomeGoods, TJX Canada, and TJX International all reported positive same-store sales for the year. Net sales rose in every segment, and constant currency numbers confirmed the underlying trend. As a result, the company kept up broad momentum across its global operations.

Cash Returns, Inventory Position and FY27 Outlook Shape the Road Ahead

TJX concluded the year with $6.2 billion in cash and generated $6.9 billion in operating cash flow. The company returned $4.3 billion via and dividends in FY26. It also revealed plans for $2.50 to $2.75 billion in share repurchases for FY27.

Inventory hit $7.3 billion, rising on both a reported and constant currency basis. The company started the new fiscal year with strong product availability and plans to update assortments through spring. The number of stores grew to 5,214 across all regions.

TJX forecast FY27 same-store sales growth of 2% to 3% and guided earnings to a range of $4.93 to $5.02. The first-quarter outlook indicated steady growth, with planned EPS of $0.97 to $0.99. Thus, the company anticipates continued growth even as its stock faces short-term pressure.