| TJX Companies, Inc. (NYSE: TJX), the leading off-price apparel and home fashion retailer in the U.S. and worldwide, today announced sales and operating results for the third quarter ended November 2, 2024. Net sales for the third quarter of Fiscal 2025 were $14.1 billion, an increase of 6% versus the third quarter of Fiscal 2024. Third quarter Fiscal 2025 consolidated comparable store sales increased 3%. Net income for the third quarter of Fiscal 2025 was $1.3 billion and diluted earnings per share were $1.14, up 11% versus $1.03 in the third quarter of Fiscal 2024. |
| For the first nine months of Fiscal 2025, net sales were $40.0 billion, an increase of 6% versus the first nine months of Fiscal 2024. Consolidated comparable store sales for the first nine months of Fiscal 2025 increased 3%. Net income for the first nine months of Fiscal 2025 was $3.5 billion. For the first nine months of Fiscal 2025, diluted earnings per share were $3.03, up 14% versus $2.65 in the first nine months of Fiscal 2024. |
| CEO and President Comments |
| Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am very pleased with our third quarter results and the strong execution of our off-price business fundamentals by our teams. Our comp store sales increase of 3% was at the high end of our plan, and both pretax profit margin and earnings per share came in well above our expectations. Across the Company, customer transactions drove our comp sales increases, which tells us that our values and treasure hunt shopping experience are appealing to a wide range of customers. I want to specifically highlight our European team for their strong results, which drove the 7% comp increase at our TJX International division. With our above-plan profitability results in the third quarter, we are raising our full-year guidance for pretax profit margin and earnings per share. The fourth quarter is off to a strong start, and we are excited about our opportunities for the holiday selling season. In stores and online, we are offering consumers an ever-changing and inspiring shopping destination for gifts at excellent value, and feel confident that there will be something for everyone when they shop at us. Going forward, we continue to see great potential to successfully grow TJX around the globe well into the future.” |
| Comparable Store Sales by Division |
| The Company’s comparable store sales by division for the third quarter of Fiscal 2025 and Fiscal 2024 were as follows: |
| |
Third Quarter
Comparable Store Sales1 |
|
|
| |
FY2025 |
FY2024 |
|
|
| |
|
|
|
|
| Marmaxx (U.S.)2 |
+2% |
+7% |
|
|
| HomeGoods (U.S.)3 |
+3% |
+9% |
|
|
| TJX Canada |
+2% |
+3% |
|
|
| TJX International (Europe & Australia) |
+7% |
+1% |
|
|
| |
|
|
|
|
| TJX |
+3% |
+6% |
|
|
| 1Comparable store sales exclude e-commerce. 2Includes TJ Maxx, Marshalls, and Sierra stores. 3Includes HomeGoods and HomeSense stores. |
Net Sales by Division |
| The Company’s net sales by division for the third quarter of Fiscal 2025 and Fiscal 2024 were as follows: |
| |
Third Quarter Net Sales
($ in millions)1 |
Third Quarter
FY2025
Reported Sales
Growth |
Third Quarter
FY2025
Sales Growth on a
Constant
Currency Basis2 |
| |
FY2025 |
FY2024 |
| |
|
|
|
|
| Marmaxx (U.S.)3 |
$8,438 |
$8,107 |
+4% |
N.A. |
| HomeGoods (U.S.)4 |
$2,355 |
$2,208 |
+7% |
N.A. |
| TJX Canada |
$1,382 |
$1,317 |
+5% |
+6% |
| TJX International (Europe & Australia)5 |
$1,888 |
$1,633 |
+16% |
+11% |
| |
|
|
|
|
| TJX |
$14,063 |
$13,265 |
+6% |
+5% |
| 1Net sales in TJX Canada and TJX International include the impact of foreign currency exchange rates. 2Reflects net sales adjusted for the impact of foreign currency; see Impact of Foreign Currency Exchange Rates, below. 3Includes TJ Maxx, Marshalls, and Sierra stores as well as their e-commerce sites. 4Includes HomeGoods and HomeSense stores (and homegoods.com for FY2024 only). 5Includes TK Maxx and Homesense stores, as well as TK Maxx e-commerce sites in Europe. |
Margins |
| For the third quarter of Fiscal 2025, the Company’s pretax profit margin was 12.3%, up 0.3 percentage points versus last year’s third-quarter pretax profit margin of 12.0%. |
| The Company’s third quarter Fiscal 2025 pretax profit margin was above the high end of its plan by 0.4 percentage points, primarily driven by the timing of certain expenses, expense savings, and higher net interest income. |
| Gross profit margin for the third quarter of Fiscal 2025 was 31.6%, up 0.5 percentage points versus last year, primarily due to an increase in merchandise margin. |
| Selling, general and administrative (SG&A) costs as a per cent of sales for the third quarter of Fiscal 2025 were 19.5%, a 0.1 percentage point increase versus last year. |
| Impact of Foreign Currency Exchange Rates |
| Changes in foreign currency exchange rates affect the translation of sales and earnings of the Company’s international businesses into U.S. dollars for financial reporting purposes. In addition, ordinary course, inventory-related hedging instruments are marked to market at the end of each quarter. Changes in currency exchange rates can have a material effect on the magnitude of these translations and adjustments when there is significant volatility in currency exchange rates. Given the global operations of the Company, to facilitate comparability, the Company has provided sales growth and inventory on a constant currency basis, which assumes a constant exchange rate between periods for translation based on the rate in effect for the prior period. |
| The movement in foreign currency exchange rates had a one percentage point positive impact on the Company’s net sales growth in the third quarter of Fiscal 2025 versus the prior year. The overall net impact of foreign currency exchange rates had a $.01 positive impact on third quarter Fiscal 2025 diluted earnings per share. |
| The movement in foreign currency exchange rates had a neutral impact on the Company’s net sales growth in the first nine months of Fiscal 2025 versus the prior year. The overall net impact of foreign currency exchange rates had a $.01 positive impact on the first nine months of Fiscal 2025 diluted earnings per share. |
| A table detailing the impact of foreign currency on TJX’s net sales and pretax profit margins, as well as those of its international businesses, can be found in the Investors section of TJX.com. The foreign currency exchange rate impact on diluted earnings per share does not include the impact currency exchange rates have on various transactions, which the Company refers to as “transactional foreign exchange.” |
| Inventory |
| Total inventories as of November 2, 2024, were $8.4 billion, compared to $8.3 billion at the end of the third quarter of Fiscal 2024. Consolidated inventories on a per-store basis as of November 2, 2024, including distribution centres, but excluding inventory in transit, the Company’s e-commerce sites, and Sierra stores, were down 2% on both a reported and constant currency basis versus last year. Inventory on a constant currency basis reflects inventory adjusted for the impact of foreign currency exchange rates, if any, as described above. The Company is well-positioned to take advantage of the outstanding availability in the marketplace and deliver an eclectic mix of exciting gifts to its stores and online throughout this holiday season. |
| Cash and Shareholder Distributions |
| For the third quarter of Fiscal 2025, the Company generated $1.0 billion of operating cash flow and ended the quarter with $4.7 billion of cash. |
| During the third quarter of Fiscal 2025, the Company returned a total of $997 million to shareholders. The Company repurchased $574 million of TJX stock, retiring 5.0 million shares, and paid $423 million in shareholder dividends during the quarter. |
| During the first nine months of Fiscal 2025, the Company returned a total of $2.9 billion to shareholders. The Company repurchased a total of $1.7 billion of TJX stock, retiring 15.4 million shares, and paid $1.2 billion in shareholder dividends. |
| The Company now expects to repurchase approximately $2.25 to $2.5 billion of TJX stock during the fiscal year ending February 1, 2025. The Company may adjust the amount purchased under this plan up or down depending on various factors. The Company remains committed to returning cash to its shareholders while continuing to invest in the business to support the near- and long-term growth of TJX. |
| Fourth Quarter and Full Year Fiscal 2025 Outlook |
| For the fourth quarter of Fiscal 2025, the Company continues to expect consolidated comparable store sales to be up 2% to 3%. The Company now expects the pretax profit margin to be in the range of 10.8% to 10.9% and diluted earnings per share to be in the range of $1.12 to $1.14. The change in the Company’s fourth-quarter pretax profit margin and earnings per share guidance is due to the expected reversal of the third-quarter benefit from the timing of certain expenses. |
| For the full year of Fiscal 2025, the Company continues to expect consolidated comparable store sales to be up 3%. The Company is increasing its outlook for pretax profit margin to 11.3% and raising its diluted earnings per share outlook to be in the range of $4.15 to $4.17. |
| As a reminder, last year’s fourth quarter and full-year pretax profit margin and earnings per share benefited from an extra week in the Company’s fiscal calendar. |
| Joint Venture in Mexico with Grupo Axo |
| During the third quarter of Fiscal 2025, the Company completed its investment in the joint venture with Grupo Axo, S.A.P.I. de C.V. (Axo) an operator of global brands in Mexico and South America that includes both full- and off-price formats. The purchase price for TJX was $179 million in cash. Under the terms of the definitive agreements, TJX owns 49% and Axo owns 51% of the joint venture. The joint venture is comprised of Multibrand Outlet Stores, S.A.P.I. de C.V., Axo’s off-price, physical store business in Mexico, which includes a total of over 200 stores for its Promoda, Reduced, and Urban Store banners. TJX has the option to increase its ownership interest in the joint venture over the long term. Both TJX and Axo expect to make additional future investments in the joint venture to support the expected growth of the business. TJX does not expect this joint venture to have a material impact on its fourth quarter or full year Fiscal 2025 financial results. |
| Investment in Brands for Less |
| After the end of the third quarter of Fiscal 2025, the Company completed its investment for a 35% non-controlling, minority equity stake in Brands For Less (BFL) for $344 million. BFL is based in Dubai and is the region’s only major off-price branded apparel, toys, and home fashion retailer. BFL currently operates over 100 stores, primarily in the UAE and Saudi Arabia, as well as an e-commerce business. The Company does not expect this investment to have a material impact on its fourth quarter or full-year Fiscal 2025 financial results. |
| Stores by Concept |
| During the fiscal quarter that ended November 2, 2024, the Company increased its store count by 56 stores overall to a total of 5,057 stores and increased square footage by 1.1% versus the prior quarter. |
| |
Store Locations1
Third Quarter FY2025 |
Gross Square Feet
Third Quarter FY2025
(in millions) |
| |
Beginning |
End |
Beginning |
End |
| |
|
|
|
|
| In the U.S.: |
|
|
|
|
| TJ Maxx |
1,326 |
1,331 |
35.9 |
36.0 |
| Marshalls |
1,204 |
1,219 |
33.8 |
34.2 |
| HomeGoods |
930 |
941 |
21.7 |
22.0 |
| Sierra |
101 |
109 |
2.1 |
2.3 |
| Homesense |
62 |
67 |
1.7 |
1.8 |
| In Canada: |
|
|
|
|
| Winners |
304 |
307 |
8.3 |
8.4 |
| HomeSense |
160 |
160 |
3.8 |
3.8 |
| Marshalls |
108 |
109 |
2.9 |
2.9 |
| In Europe: |
|
|
|
|
| TK Maxx |
645 |
653 |
17.9 |
18.1 |
| Homesense |
77 |
77 |
1.4 |
1.4 |
| In Australia: |
|
|
|
|
| TK Maxx |
84 |
84 |
1.7 |
1.7 |
| |
|
|
|
|
| TJX |
5,001 |
5,057 |
131.2 |
132.6 |
| 1Store counts above include both banners within a combo or a superstore. |
Global Corporate Responsibility Report |
| During the third quarter of Fiscal 2025, the Company issued its 2024 Global Corporate Responsibility Report, covering programs and progress related to the Company’s four reporting areas of workplace, communities, environmental sustainability, and responsible sourcing. As part of the Company’s voluntary corporate responsibility disclosure, the report also includes greenhouse gas (GHG) emissions and other corporate responsibility-related data tables, as well as an index for select metrics from the Sustainability Accounting Standards Board (SASB) and the United Nations Sustainable Development Goals (UN SDGs). TJX has reported on its corporate responsibility efforts since 2011. More information can be found at TJX.com/responsibility. |
| About The TJX Companies, Inc. |
| TJX Companies, Inc., a Fortune 100 company, is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. Our mission is to deliver great value to customers every day. We do this by offering a rapidly changing assortment of quality, fashionable, brand-name, and designer merchandise at prices generally 20% to 60% below full-price retailers’ regular prices on comparable merchandise. We operate over 5,000 stores across nine countries, including TJ Maxx, Marshalls, HomeGoods, HomeSense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe, and TK Maxx in Australia. We also operate e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe. Our value mission extends to our corporate responsibility efforts, which are focused on supporting our Associates, giving back to the communities we serve, and the environment, and operating responsibly. Additional information about TJX’s press releases, financial information, and corporate responsibility are available at TJX.com. |
| For the full document click the link below: |
| The TJX Companies, Inc |
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