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SEC filingFiscal 2026 delivered double-digit earnings growth outpacing solid topline expansion, as margin improvements and operational discipline drove profitability gains. Robust cash generation provided strategic flexibility for continued supply chain investments.
TJX delivered solid revenue growth of 7% to $60.4 billion, with management explicitly attributing the comparable sales increase to growth in customer transactions combined with a higher average basket. This dual-driver dynamic suggests the off-price value proposition is resonating with consumers across the store base, supporting the treasure hunt experience that defines the company's differentiated retail model.
The 13% increase in net income to $5.5 billion significantly outpaced revenue growth, reflecting meaningful operating leverage. Management attributed the segment profit margin improvement to favorable merchandise margins and expense leverage on higher comp sales, supplemented by lower supply chain and store costs. Additionally, a net benefit from the credit card interchange fees litigation settlement provided a tailwind to segment profitability. The decrease in the cost of sales ratio, including buying and occupancy costs, further underscores the company's ability to negotiate favorable merchandise costs while maintaining its value gap relative to conventional retailers. Gross margin reached 31.0% for the fiscal year.
Diluted earnings per share grew to $4.87, up from $4.26 in the prior fiscal year. This improvement reflects the strong net income performance and demonstrates the company's ability to translate operational execution into per-share value creation for stockholders.
Management emphasized ongoing investments in supply chain capabilities designed to operate with low inventory levels, ship more efficiently, and allocate merchandise more precisely to each store. These operational enhancements support the company's opportunistic buying strategy and position TJX to capitalize on merchandise availability in both favorable and challenging retail environments. The company noted it has not experienced difficulty obtaining sufficient quality merchandise and expects this to continue should it meet or exceed growth plans.