TJX Companies, Inc. (NYSE: TJX), an off-price apparel and home fashion retailer, reported a modest decrease in net income for the first quarter of 2026, despite an increase in sales.
Consolidated comparable sales rose 3% year-over-year in the first quarter, driven by an increase in customer transactionsNet sales increased to $13.1 billion in the April quarter from $12.48 in the comparable quarter of 2025Net income was $1.03 billion or $0.92 per share in Q1, vs. $1.07 billion or $0.93 per share a year earlierQ1 pretax profit margin was 10.3%, below last year’s first-quarter pretax profit margin of 11.1%Gross profit margin dropped by 0.5 percentage points YoY to 29.5%, mainly due to negative mark-to-market adjustments on inventory hedgesTotal inventories as of May 3, 2025, were $7.1 billion, compared to $6.2 billion in the prior-year periodDuring the quarter, the company returned $1.0 billion to shareholders through share repurchases and dividendsFor the second quarter of FY26, the management expects consolidated comparable sales to be up 2% to 3%It targets second-quarter pretax profit margin of 10.4-10.5% and expects earnings per share in the range of $.97 to $1.00
