TJX Companies (TJX) risk factors, FY2026 10-K

TJX Companies's FY2026 10-K, filed Mar 31, 2026, lists 29 risk factors in 2 groups. Against the prior year's 28: 2 new, 1 dropped, 14 substantially reworded.

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Risk factors listed
292 groups
New this year
2vs 28 last year
Dropped
1since the prior 10-K
Substantially reworded
14of those kept
Section length
10k wordsItem 1A

What the changes say

  • TJX added specific risks regarding geopolitical cybersecurity threats and M&A execution.
  • Updates focus on digital marketing changes, labor costs, and trade tariffs.

What changed since the prior 10-K

New

  • NewOPERATIONAL AND STRATEGIC RISKS

    Additionally, there continues to be a heightened risk of cybersecurity incidents as a result of geopolitical events outside of our control. These factors have led to the need for additional mitigation strategies and investments across our IT workforce, capabilities and processes

    Geopolitical events create heightened cybersecurity risks that require additional IT investments and expose us to potential regulatory enforcement or legal liability.

  • NewOPERATIONAL AND STRATEGIC RISKS

    Mergers, acquisitions or investments in new businesses, or divesting, closing or consolidating any of our current businesses, subjects our business to additional risks and could adversely affect our results

    Mergers, acquisitions, joint ventures like our Mexico venture, and internal expansions such as Homesense carry execution risks that could adversely affect our financial results.

Dropped

  • DroppedOPERATIONAL AND STRATEGIC RISKS

    If we engage in mergers, acquisitions or investments in new businesses, or divest, close or consolidate any of our current businesses, our business could be subject to additional risks

Reworded

  • 59% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Changes in economic conditions, on a global level or in particular markets, may adversely affect our sources of liquidity and costs of capital and increase our financial exposure, and our strategies for managing these financial risks may not be effective or sufficient

    Added specific language regarding borrowing practices and past cost increases from market disruptions affecting financing access.

  • 53% rewrittenOPERATIONAL AND STRATEGIC RISKS

    We depend upon strong cash flows from our operations to supply capital to fund our operations, anticipated growth, any stock repurchases and dividends and interest and debt repayment

    Clarified cash flow dependencies for debt repayment and dividends with minor wording adjustments.

  • 52% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Compromises of our cybersecurity, disruptions in our IT systems, or failure to satisfy the IT needs of our business could result in material loss or liability, materially impact our operating results or materially harm our reputation

    Added logistics and point-of-sale transaction processing to the scope of IT system dependencies.

    Was: Compromises of our cybersecurity, disruptions in our information technology systems, or failure to satisfy the information technology needs of our business could result in material loss or liability, materially impact our operating results or materially harm our reputation

  • 44% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Our results and profitability could be adversely affected by increased labor costs, including wage, pension, health and other costs, or other challenges from our large workforce

    Included labor market dynamics related to automation and technology alongside unionization and inflation pressures.

  • 41% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Changes to U.S. or other countries' trade policies and tariff and import/export regulations or our failure to comply with such regulations may have an adverse effect on our business, financial condition, and results of operations

    Updated to state that the U.S. government has imposed tariffs and that retaliatory measures on U.S. goods are expected.

  • 39% rewrittenOPERATIONAL AND STRATEGIC RISKS

    If we fail to successfully implement our marketing efforts, if our marketing efforts are not successful in driving expected increases in sales or if our competitors’ marketing programs are more effective than ours, our revenue or results of operations may be adversely affected

    Added risks regarding online search, email delivery, and algorithmic social media changes increasing customer acquisition costs.

  • 39% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Failure to effectively manage the large size and scale of our operations may adversely affect our financial results

    Expanded complex operations management to include finance and administrative support teams.

  • 33% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Our results may be adversely affected by severe or unseasonable adverse weather, serious disruptions, catastrophic events or public health crises

    Streamlined disaster descriptions by removing specific examples of injury or harm to associates and customers.

  • 30% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Economic conditions on a global level or in particular markets, geopolitical uncertainty, and other factors creating uncertainty and instability may adversely affect consumer confidence and discretionary spending, which could affect our financial performance

  • 27% rewrittenREGULATORY, LEGAL AND COMPLIANCE RISKS

    Failure to comply with laws, rules, regulations and orders and applicable accounting principles and interpretations could negatively affect our business operations and financial performance

  • 25% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Failure to execute our opportunistic buying strategy and successfully manage our inventory could adversely affect our results

  • 24% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Damage to our corporate reputation or any of our retail banners’ reputation could adversely affect our sales and operating results

  • 22% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Further expansion of our international operations could expose us to risks inherent in operating in new countries

  • 20% rewrittenOPERATIONAL AND STRATEGIC RISKS

    Our large number of real estate leases, which generally obligate us for long periods, subject us to potential financial risk

All 29 risk factors

Headings as the filing states them, in filing order.

OPERATIONAL AND STRATEGIC RISKS

  1. 01Failure to execute our opportunistic buying strategy and successfully manage our inventory could adversely affect our results25% rewritten
  2. 02Failure to identify consumer trends and preferences, or to otherwise meet customer demand or expectations, in new or existing markets or channels could negatively impact our performance
  3. 03We operate in highly competitive markets, and we may not be able to compete effectively
  4. 04If we fail to successfully implement our marketing efforts, if our marketing efforts are not successful in driving expected increases in sales or if our competitors’ marketing programs are more effective than ours, our revenue or results of operations may be adversely affected39% rewritten
  5. 05Failure to continue to expand our business successfully could adversely affect our financial results
  6. 06Failure to effectively manage the large size and scale of our operations may adversely affect our financial results39% rewritten
  7. 07We source our merchandise globally, which subjects us to risks, including when moving merchandise internationally
  8. 08Compromises of our cybersecurity, disruptions in our IT systems, or failure to satisfy the IT needs of our business could result in material loss or liability, materially impact our operating results or materially harm our reputation52% rewritten
  9. 09Additionally, there continues to be a heightened risk of cybersecurity incidents as a result of geopolitical events outside of our control. These factors have led to the need for additional mitigation strategies and investments across our IT workforce, capabilities and processesNew
  10. 10Our results and profitability could be adversely affected by increased labor costs, including wage, pension, health and other costs, or other challenges from our large workforce44% rewritten
  11. 11Failure to employ qualified Associates in appropriate numbers and to retain key Associates and management could adversely affect our performance
  12. 12Damage to our corporate reputation or any of our retail banners’ reputation could adversely affect our sales and operating results24% rewritten
  13. 13Further expansion of our international operations could expose us to risks inherent in operating in new countries22% rewritten
  14. 14Failure to meet market expectations for our financial performance could adversely affect the market price and volatility of our stock
  15. 15Failure to protect our inventory or other assets from loss and theft and situations resulting in loss or theft may impact customer and Associate safety as well as our financial results
  16. 16We depend upon strong cash flows from our operations to supply capital to fund our operations, anticipated growth, any stock repurchases and dividends and interest and debt repayment53% rewritten
  17. 17Mergers, acquisitions or investments in new businesses, or divesting, closing or consolidating any of our current businesses, subjects our business to additional risks and could adversely affect our resultsNew
  18. 18Our large number of real estate leases, which generally obligate us for long periods, subject us to potential financial risk20% rewritten
  19. 19Economic conditions on a global level or in particular markets, geopolitical uncertainty, and other factors creating uncertainty and instability may adversely affect consumer confidence and discretionary spending, which could affect our financial performance30% rewritten
  20. 20Changes to U.S. or other countries' trade policies and tariff and import/export regulations or our failure to comply with such regulations may have an adverse effect on our business, financial condition, and results of operations41% rewritten
  21. 21Changes in economic conditions, on a global level or in particular markets, may adversely affect our sources of liquidity and costs of capital and increase our financial exposure, and our strategies for managing these financial risks may not be effective or sufficient59% rewritten
  22. 22Our results may be adversely affected by severe or unseasonable adverse weather, serious disruptions, catastrophic events or public health crises33% rewritten
  23. 23As our business is subject to seasonal influences, a significant, unplanned decrease in sales or margins, a severe disruption or other significant event that impacts our business during the second half of the year could have a disproportionately adverse effect on our operating results
  24. 24Our results may be adversely affected by increased utility, transportation or logistics costs; reduced availability or increased cost of oil or other fuels; or increased costs of other commodities
  25. 25Fluctuations in currency exchange rates may lead to lower revenues and earnings

REGULATORY, LEGAL AND COMPLIANCE RISKS

  1. 26Failure to comply with laws, rules, regulations and orders and applicable accounting principles and interpretations could negatively affect our business operations and financial performance27% rewritten
  2. 27Our results may be materially adversely affected by the outcomes of litigation, legal proceedings and other legal or regulatory matters
  3. 28Quality, safety or other issues with merchandise we buy and sell could impact our reputation, sales and financial results
  4. 29Tax matters could adversely affect our results of operations and financial condition

Other TJX Companies 10-Ks

  • FY2025 10-K risk factors
    28 risks

    The company faces heavy reliance on its off-price opportunistic buying model and lean inventory management strategy. Global sourcing from China, India, and southeastern Asia exposes operations to international logistics and tariff risks. Maintaining a massive workforce and large-scale operations creates ongoing labor cost and talent retention challenges.

    Filed Apr 02, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.