The TJX Companies, Inc.

Strong Q3 operating results; beats plan across the board - Consolidated comp sales: +5%, well above plan, driven by higher average basket and more customer transactions. - Profitability: Pre-tax profit margin 12.7% (+40 bps YoY), +60 bps above the high end of plan. - Gross margin: +100 bps YoY, mainly from higher merchandise margin (lower freight costs, expense efficiencies, and leverage on above-plan sales). - EPS: $1.28 diluted, +12% YoY, also above expectations.

Tariffs offset effectively; some margin headwinds but largely managed - Tariff pressure: Management stated they offset all tariff pressure in Q3 via “mitigation strategies.” - SG&A: +60 bps YoY, driven by store wage payroll costs, TJX Foundation contribution, and higher incentive compensation accruals. - Net interest income: negative impact of ~10 bps to pre-tax margin YoY (i.e., a modest headwind). - Inventory: Balance sheet inventory +12% YoY and inventory per store +8%, reflecting buying into quality branded merchandise for the holiday season (availability described as very strong).

Division performance: broad-based strength in US and international; Canada impacted by FX - Marmaxx (incl. Sierra + US e-commerce): Comp +6%; segment profit margin 14.9% (+60 bps). - HomeGoods: Comp +5%; segment profit margin 13.5% (+120 bps). - TJX Canada: Comp +8%, but profit margin down ~20 bps on a constant-currency basis, attributed to unfavorable transactional FX. - TJX International: Comp +3% with profit margin constant-currency up to 9.2% (+190 bps); confidence expressed in continued share gains in Europe and Australia and planned Spain entry in 2026.