TJX · 10-Q · 2026Q3 · Full report

Fuel Cost Pressure

TJX COMPANIES INC /DE/ · 2026-08-28 · Importance 10 · Surprise 6

TJX hedges portions of estimated U.S. diesel-fuel requirements because independent freight carriers apply mileage surcharges based on diesel prices. The company generally intends to hedge approximately 80% of estimated domestic diesel requirements for the succeeding twelve months. Contracts outstanding at August 1, 2026 covered approximately 3.3 million to 3.9 million gallons per month for the remainder of fiscal 2027 and the first six months of fiscal 2028. These contracts settle throughout fiscal 2027 and the first seven months of fiscal 2028, with gains and losses recorded in cost of sales.

Key facts

• TJX hedges portions of its estimated notional diesel fuel requirements in the U.S. and the diesel fuel hedge agreements outstanding at August 1, 2026 relate to approximately a percentage of estimated notional diesel fuel requirements for remainder of fiscal 2027 and first six months of fiscal 2028 (percentage redacted in text). source
• General corporate expense increase for the second quarter of fiscal 2027 was primarily driven by the unfavorable year-over-year impact related to the mark-to-market adjustments on inventory and fuel hedge, incremental compensation expense accruals related to tariff refunds and higher other administrative costs. source