TJX · 10-Q · 2026Q3 · Full report

Operating Expense Trends

TJX COMPANIES INC /DE/ · 2026-08-28 · Importance 33 · Surprise 50 · In source text

Second-quarter SG&A increased to 20.3% of net sales from 19.5%, while the six-month ratio increased to 19.9% from 19.5%. The increases were driven by $112 million of incremental compensation accruals related to IEEPA tariff refunds and higher store wage and payroll costs. Second-quarter general corporate expense also increased because of unfavorable year-over-year inventory and fuel hedge mark-to-market effects, tariff-refund compensation accruals, and higher administrative costs. Six-month general corporate expense decreased because of favorable hedge mark-to-market comparisons, partly offset by higher administrative and incentive compensation costs.

Key facts

• Lease liabilities arising from obtaining right of use assets: $1,832 million for the twenty-six weeks ended August 1, 2026. source
• The Company does not anticipate any required funding in fiscal 2027 for its funded pension plan and anticipates making contributions of $ million to provide current benefits coming due under the unfunded plan in fiscal 2027 (amount redacted for unfunded plan contributions). source
• We have accrued incremental expenses of $112 million for year-end incentive compensation and discretionary bonuses for eligible Associates globally as a result of tariff refunds. source
• Thirteen weeks selling, general and administrative expenses: $3,085 million for the thirteen weeks ended August 1, 2026. source
• Operating cash flows paid for operating leases: $1,147 million for the twenty-six weeks ended August 1, 2026. source
• SG&A expense ratio for the second quarter of fiscal 2027 was 20.3%, a 0.8 percentage point increase compared with 19.5% in the second quarter of fiscal 2026. source
• SG&A expenses as a percentage of net sales was 19.9% for the first six months of fiscal 2027, an increase of 0.4 percentage points compared to 19.5% for the first six months of fiscal 2026. source
• Depreciation and amortization included in adjustments to reconcile net income to net cash: (amount shown as a line item in cash flow adjustments) — depreciation and amortization amount not provided explicitly in the excerpt for the twenty-six weeks but referenced as an adjustment line item. source

Impact estimates