Overall Comp Sales Increase (%)

FY 2026

2% to 3% "

3% "

raised

Consolidated Sales

FY 2026

$58.1 to $58.6 billion "

$59,300 to $59,600 million "

raised

Pretax Profit Margin (%)

FY 2026

11.3% to 11.4% "

11.4 to 11.5 "

raised

Gross Margin (%)

FY 2026

30.4% to 30.5% "

30.5 to 30.6 "

raised

SG&A (%)

FY 2026

19.3% "

19.4 "

raised

Net Interest Income ($USD Millions)

FY 2026

$98 "

$108 "

raised

Tax Rate (%)

FY 2026

25.1% "

24.5 "

lowered

Weighted Average Share Count

FY 2026

1.13 billion "

1,130 "

no change

Diluted EPS ($USD)

FY 2026

$4.34 to $4.43 "

$4.52 to $4.57 "

raised

Overall Comp Sales Increase (%)

Q3 FY 2026

2% to 3% "

2 to 3 "

no change

Consolidated Sales

Q3 FY 2026

$13.9 to $14 billion "

$14,700 to $14,800 million "

raised

Pretax Profit Margin (%)

Q3 FY 2026

10.4% to 10.5% "

12 to 12.1 "

raised

Gross Margin (%)

Q3 FY 2026

30% "

31.6 to 31.7 "

raised

SG&A (%)

Q3 FY 2026

19.7% "

19.8 "

raised

Net Interest Income ($USD Millions)

Q3 FY 2026

$24 "

$25 "

raised

Tax Rate (%)

Q3 FY 2026

24% "

24.7 "

raised

Weighted Average Share Count

Q3 FY 2026

1.13 billion "

1,130 "

no change

Diluted EPS ($USD)

Q3 FY 2026

$0.97 to $1 "

$1.17 to $1.19 "

raised

Tariff Management

Q1 discussions focused on navigating tariff pressures via flexible sourcing and mitigation efforts ( " " " ), Q4 noted limited impact from direct imports ( " ) and Q3 emphasized opportunistic buying to offset tariff impacts ( " ).

Q2 highlighted higher tariff costs but stressed that effective flexible and strategic approaches – including strong planning and allocation – kept merchandise margins flat despite the pressure ( " " ).

Consistent emphasis on managing tariffs. While challenges remain, the company’s mitigation strategies continue to be refined and are effectively offsetting higher tariff costs.

Recurring Margin Performance and Pricing Sensitivity

Q1 showed challenges with margins (e.g., 50bps gross margin decline due to unfavorable hedges) and detailed pricing flexibility ( " " ). Q4 and Q3 demonstrated mixed margin results with strategic pricing adjustments and effective segmentation ( " " ).

Q2 reported improved pretax margins and a flat merchandise margin thanks to lower-than-expected tariff costs, effective hedging, and disciplined pricing sensitivity ( " ).

Improved outlook amidst cost pressures. The company has maintained pricing flexibility while achieving better margin performance despite ongoing external challenges.

Ongoing Inventory Management and Supply Chain Risks

Q1 and Q3 highlighted adaptive inventory levels and modest supply chain challenges with diversified sourcing ( " " " ), and Q4 reported smaller inventory increases with confidence in merchandise availability ( " ).

Q2 reported strong increases in balance sheet (up 14%) and per‐store inventory (up 10%) with robust global sourcing and agile planning, reinforcing strong supply availability ( " ).

Steady confidence with enhanced flexibility. The company continues to effectively manage inventory and supply chain risks, reinforcing its ability to source and flow fresh assortments.

Store Expansion, Optimization, and International Growth

Q1 and Q4 emphasized continued expansion—including new markets like Spain and joint ventures—and detailed store opening plans ( " " " ), while Q3 discussed specific international growth efforts and optimization strategies ( " " ).

Q2 reaffirmed long‐term potential with plans for 1,800+ additional stores, further expansion in international markets, and active store optimization through agile allocation and available retail space opportunities ( " " ).

Bullish and consistent. Expansion and international growth remain key drivers, with ongoing optimism and detailed plans supporting long‐term market share gains.

Flexible Buying and Cost Mitigation Strategies

Q1 and Q4 highlighted an opportunistic, flexible buying approach that leverages global sourcing to mitigate tariff pressures and control costs ( " " " " ). Q3 did not mention these topics explicitly.

Q2 reiterated the flexible, hand-to-mouth buying strategy and effective cost mitigation – including efficient markdown management and operational expense control – to offset higher tariffs ( " " ).

Consistently positive. The flexible buying model remains a cornerstone strategy that continues to deliver cost mitigation benefits and supports profitability despite external pressures.

Emerging Concern: Reversal of Inventory Hedging Benefits

Q1 indicated a 50bps negative impact on gross margin due to unfavorable hedges while Q4 noted a 100bps deleveraging impact from hedge reversal ( " " " ); Q3 did not address this issue.

Q2 acknowledged a slight headwind from inventory hedge reversal; however, management expects the impact to be minimal moving forward ( " ).

Concerns are moderating. While the reversal continues to pose a headwind, its impact appears to be less significant and is being effectively managed.

HomeGoods Segment Performance

Q1 and Q4 consistently reported strong HomeGoods performance with 4%–4%+ comp sales growth and margin improvements ( " " ), and Q3 highlighted rising profitability and market share gains along with celebratory milestones ( " ).

Q2 reaffirmed robust HomeGoods performance with 5% comp sales growth and improved segment margins while maintaining a strong customer value proposition ( " ).

Strong and persistent. The segment continues to perform well, with sentiment remaining highly positive and an ongoing focus on market leadership.

Wage, Payroll, Shrinkage, and Real Estate Challenges

Q4 mentioned incremental wage and payroll pressures alongside favorable shrink rates and real estate opportunities amid store relocations ( " " " ), and Q3 noted modest wage increases offset by efficiency gains and planned relocations ( " " ); Q1 had little discussion on these challenges.

Q2 did not emphasize these challenges; aside from a brief note on shrink targets and available retail spaces, there was no significant focus on wage, payroll, or real estate issues ( " " ).

Reduced emphasis. While wage and payroll costs and real estate dynamics remain part of the cost structure, they are less stressed and are largely offset by operational efficiencies and favorable shrink trends.

Tariff Mitigation and Margin Stability

Q1 highlighted a flexible buying approach with vendor support and cost‐saving initiatives to counteract tariff pressure ( " " " ); Q4 reiterated strategies that rely on minimal exposure to direct imports and a backward pricing approach ( " ); Q3 underscored managing tariffs by maintaining a value gap ( " ).

Q2 maintained that despite higher tariffs and foreign exchange headwinds, effective mitigation measures are keeping margins stable, with management confident in continued offsetting through strategic actions ( " " " ).

Steady and cautiously optimistic. The ongoing use of mitigation strategies continues to support margin stability even as external pressures persist.

Favorable Off-Price Retail Environment Opportunity

Q1, Q3, and Q4 repeatedly emphasized the strong consumer demand for value, robust market share gains, and an environment conducive to off-price retail; mentions included strong value propositions and expanding store formats ( " " " , " , " , " ).

Q2 stressed robust customer demand, increased comp sales, and significant market share opportunities, reinforced by effective marketing campaigns and expansive store growth potential ( " " ).

Consistently bullish. The off-price retail environment continues to offer significant opportunities, with favorable consumer trends and market conditions driving optimism for long-term growth.