The TJX Companies has reported improvements on its top and bottom lines in the fourth quarter, exceeding management’s expectations.

The company’s net sales edged down 0.4 per cent to $16.4 billion, while comparable store sales rose 5 per cent for the quarter ended February 1.

According to GlobalData MD Neil Saunders, the lower net sales were mainly due to this quarter having one fewer week than the same period last year. 

The higher comparable sales came off the back of a long period of strong growth, and represent uplifted momentum compared to the prior quarter, he added.

At TJMaxx and Marshalls, comparable sales increased 4 per cent, which Saunders said was above the overall growth of the apparel market. The analyst attributed the growth to the two chains’ good range of styles and quality brands as well as higher demand for more formal and dressier styles.

He also noted that the improvement was delivered in a very promotional apparel market.

The home division also performed well with a comparable sales gain of 5 per cent off the back of a 7 per cent uplift in the prior year. Saunders attributed this to a more favorable market with a 3.7 per cent uptick in overall spending on home furnishings and furniture. 

In the international business, comparable sales were up 10 per cent in Canada and 7 per cent in other markets. The growth was thanks to good execution coupled with consumers that have become far more constrained, Saunders explained.

On the bottom line, pretax profit margin was 11.6 per cent, up 0.4 percentage points versus last year.

For the full year, net sales grew 4 per cent to $56.4 billion, with comparable store sales also up 4 per cent.

The company expects comparable store sales to be up 2-3 per cent for both the first quarter of FY26 and the full year.