The US retail group TJX Companies Inc. was once again able to exceed its own forecasts and analysts’ expectations in the third quarter of the 2025/26 financial year. The company then set higher targets for the full year again on Wednesday.
The off-price specialist, which is present in Europe with its TK Maxx and Homesense formats, achieved net sales of $15.1 billion (€13.1 billion) in the 13 weeks to November 1st. This corresponded to growth of seven percent compared to the same period last year. On a comparable basis, revenue increased by five percent.
The result in the most recent quarter was also higher than previously expected. In addition to the surprisingly strong sales growth, an increase in the gross margin from 31.6 to 32.6 percent also contributed to this. Net profit increased by eleven percent and reached 1.44 billion US dollars (1.25 billion euros).
Management sees a “strong start” to the final quarter
In the first nine months of the current financial year, group sales rose by seven percent to $42.6 billion. Net profit grew by seven percent to $3.72 billion.
CEO and President Ernie Herrman was correspondingly pleased. “I am extremely pleased with our third quarter results and the excellent execution of our off-price business model by our teams across the company,” he said in a statement. “Sales, profit margin before taxes and earnings per share exceeded our expectations.”
In view of the positive figures and a “strong start” to the fourth quarter, the group raised its annual forecasts once again. Sales growth on a comparable basis of four percent is now expected for 2025/26. A corresponding increase of three percent had previously been forecast. The diluted earnings per share target, previously at $4.52 to $4.57, was increased to $4.63 to $4.66.