TJX · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

TJX COMPANIES INC /DE/ · 2026-08-28 · Importance 50 · Surprise 58

Second-quarter cost of sales, including buying and occupancy costs, declined to 66.6% of sales from 69.3%, a 2.7-percentage-point improvement. Six-month cost of sales declined to 67.6% from 69.9%, supported by tariff refunds, higher markon, favorable hedge mark-to-market comparisons, and expense leverage on higher comp sales. TJX recognized $331 million of IEEPA tariff refunds in the second quarter and accrued $112 million of related incentive compensation and discretionary bonuses, producing a net $219 million benefit. HomeGoods merchandise margin also benefited from lower freight costs and higher markon, partially offset by higher markdowns.

Key facts

• Thirteen weeks cost of sales, including buying and occupancy costs: $10,108 million for the thirteen weeks ended August 1, 2026. source
• Cost of sales, including buying and occupancy costs, ratio for the second quarter of fiscal 2027 was 66.6%, a 2.7 percentage point decrease compared with 69.3% in the second quarter of fiscal 2026. source
• Cost of sales, including buying and occupancy costs, was 67.6% for the first six months of fiscal 2027, a decrease of 2.3 percentage points compared to 69.9% for the first six months of fiscal 2026. source