Fashion
US’ TJX sees strong sales in Q2; upwardly revises FY26 forecast
The pretax profit margin in Q2 improved to 11.4 per cent, 0.5 percentage points (pp) higher than last year and 0.9 pp above plan, and gross margin rose to 30.7 per cent from 30.4 per cent, driven by favourable hedges, while selling, general and administrative (SG&A) expenses decreased to 19.5 per cent of sales from 19.8 per cent due to efficiencies. This was primarily driven by operational efficiencies as well as a benefit from the timing of certain expenses, The TJX Companies said in a press release.
The TJX Companies has posted strong Q2 FY26 results with net sales up 7 per cent to $14.4 billion, comparable sales rising 4 per cent, and EPS climbing 15 per cent to $1.1.
Net income reached $1.2 billion, and margins improved on efficiencies.
H1 sales grew 6 per cent to $27.5 billion.
TJX raised its FY26 EPS outlook to $4.52–$4.57 and remains confident despite tariff pressures.
Division-wise, Marmaxx (US) grew net sales 5 per cent to $8.8 billion on a 3 per cent comparable sales rise, while HomeGoods (US) gained 9 per cent to $2.3 billion on a 5 per cent increase. TJX Canada posted 11 per cent growth to $1.4 billion with 9 per cent comparable sales, and TJX International rose 13 per cent to $1.9 billion, up 7 per cent on a constant currency basis.
“I am extremely pleased with our second quarter performance. Sales, pretax profit margin, and earnings per share were all above our plan. As we have seen through so many different retail and economic environments, consumers were drawn to our excellent values and brands. Customer transactions were up at every division as we saw strong demand at each of our US and international businesses,” said Ernie Herrman, chief executive officer and president of The TJX Companies, Inc.
TJX added 13 stores in Q2, ending with 5,134 locations and 134.4 million square feet, led by expansions in TJ Maxx, HomeGoods, Sierra, Winners, and TK Maxx internationally.
For the first half of FY26, the company’s sales grew 6 per cent to $27.5 billion, with consolidated comparable sales up 4 per cent. Net income stood at $2.3 billion, and diluted EPS rose 7 per cent to $2.02. SG&A expenses of the company rose to $5.4 billion.
For full fiscal 2026, The TJX Companies expects consolidated comparable sales to rise 3 per cent. It has raised its pretax profit margin outlook to 11.4–11.5 per cent, flat to slightly below last year’s 11.5 per cent, and lifted diluted EPS guidance to $4.52–$4.57, up 6–7 per cent from $4.26. The improved EPS forecast reflects above-plan Q2 results and a smaller negative impact from foreign currency exchange rates.
For the third quarter (Q3) of FY26, TJX projects comparable sales growth of 2–3 per cent, pretax profit margin of 12–12.1 per cent versus 12.3 per cent last year, and diluted EPS of $1.17–$1.19, up 3–4 per cent from $1.14. These forecasts assume current US tariffs remain in place through FY26, with the company confident of offsetting their impact.
“With our strong second quarter profit results, we are raising our full-year guidance for both pretax profit margin and earnings per share. The third quarter is off to a strong start, and I am very confident in our position as we enter the second half of the year,” added Herrman. “Our teams are energised by the opportunities we see in the marketplace for excellent brands and fashions and our initiatives to keep attracting shoppers to our retail brands. Longer term, we are convinced that we have a long runway ahead to capture additional market share and continue our successful growth around the world.”
Fibre2Fashion News Desk (SG)
In February, Fibre*Fashion reported, citing an Investment Information and Credit Rating Agency report, that the India–EU FTA pushes for eliminating the duties on shipments from India and giving the country a competitive edge against competitors such as Bangladesh and Vietnam, who have so far enjoyed free entry into the EU region.
The FTA between India and the EU is expected to come into effect sometime in early January and with the United Kingdom in June or July this year. CEO of The Synerg, Karthikeyan Shanmugam, said in an interview with Fibre*Fashion that the future is quite good for India’s textile industry as the FTAs come into place.
The company posted a revenue of £42.3 million (~$57.53 million) in FY26 ended March 31, 2026, up 14 per cent YoY from the previous year, supported by a 24 per cent surge in own-site sales. The growth was fuelled by higher website traffic, improved conversion rates and increased order volumes from both new and returning customers.
Sosandar reported FY26 revenue of £42.3 million (~$57.53 million), up 14 per cent, driven by strong online growth, with own-site sales rising 24 per cent.
The company returned to profitability with PBT of £0.4 million (~$0.54 million) and improved margins.
Despite slightly missing revenue expectations, performance remained solid.
Strong third-party sales supported confidence in profitable growth.
Sosandar noted strong performance across all categories, from occasion wear to casual collections, reflecting its ability to translate trends into its distinctive design aesthetic.
Profitability improved significantly during the year, with profit before tax expected to reach £0.4 million (~$0.54 million), compared to a loss of £0.1 million in FY25. Gross margin also strengthened to 63.9 per cent from 62.1 per cent, highlighting the company’s focus on margin enhancement and operational efficiency. Sosandar ended the year with net cash of £8.4 million, even after £1.8 million in share buybacks, up from £7.3 million a year earlier, Sosandar said in a press release.
The company noted that market expectations ahead of the announcement had been set at revenue of £43.1 million and profit before tax of £0.4 million for FY26, indicating that profitability is in line with forecasts, while revenue came in slightly below expectations.
The brand continued to perform strongly across third-party platforms, particularly with NEXT, reinforcing its position as a leading womenswear label in the UK market. Trading with Marks & Spencer also began to normalise following earlier disruptions, with stock intake returning to expected levels.
Sosandar’s physical retail presence delivered a positive uplift, with stores entering their second year of trading and locations in market towns performing particularly well. However, the company noted that stores are still weighing on overall profitability as they mature, especially those located in shopping centres. As a result, no new store openings are planned in the near term, with a focus instead on improving profitability at existing locations.
Looking ahead, the board expressed confidence in the company’s strategy, emphasising that strong foundations are in place to deliver sustainable, profitable and cash-generative growth.
Fibre2Fashion News Desk (SG)
Firms also increased stock purchases to support rising output, with some resorting to precautionary inventory building amid concerns over disruptions linked to the ongoing Middle East conflict, the Central Bank of Sri Lanka said in a press release.
Sri Lanka’s manufacturing PMI surged to 66.7 in March from 56.8 in February, driven by strong gains in new orders and production, particularly in apparel.
Firms raised inventories amid Middle East-related risks.
However, supply constraints, rising costs, and logistics issues persisted, with delivery times worsening.
Employment growth slowed.
Outlook remains positive.
Despite robust demand, manufacturers reported a constrained operating environment due to raw material and fuel shortages, rising input costs, and logistical challenges. Supplier delivery times lengthened significantly to 75.5, reflecting shipping disruptions and demand pressures. Employment rose at a slower pace, indicating cautious hiring despite increased workloads.
Looking ahead, business expectations for the next quarter remain positive across sectors, supported by seasonal trends and emerging opportunities. However, concerns persist over the impact of the Middle East conflict, supply disruptions, and broader global economic uncertainty, which may weigh on future momentum.
Fibre2Fashion News Desk (SG)
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