US' TJX sales reach $56.4 bn in FY25, cautious on FY26 outlook

TJX Companies, Inc has reported a strong financial performance for fiscal 2025 (FY25), ended February 1, 2025, with net sales reaching $56.4 billion, representing a 4 per cent increase compared to the previous year. The company’s net income grew by 10 per cent to $4.9 billion, while diluted earnings per share rose to $4.26, up 10 per cent from the prior year and 13 per cent on an adjusted basis. Despite the absence of an extra trading week compared to fiscal 2024 (FY24), TJX achieved a 4 per cent increase in consolidated comparable store sales.

“I am very proud of the performance of our hard-working Associates in 2024. We delivered outstanding top-and bottom-line results that exceeded our guidance for the year. We surpassed $56 billion in annual sales, drove a 4 per cent comparable store sales increase, significantly increased profitability, and opened our 5,000th store during the year,” stated Ernie Herrman, chief executive officer and president of The TJX Companies, Inc.

For the fourth quarter of FY25, the company reported net sales of $16.4 billion, flat compared to the 14-week fourth quarter of the previous year. However, comparable store sales rose by 5 per cent, demonstrating strong customer engagement. Net income for the quarter was $1.4 billion, with diluted earnings per share increasing by 1 per cent to $1.23. Adjusting for last year’s extra trading week, diluted earnings per share rose by 10 per cent.

The company’s pretax profit margin for the quarter was 11.6 per cent, up from 11.2 per cent in the prior year, while the gross profit margin increased to 30.5 per cent from 29.8 per cent. The improved profitability was driven by lower inventory shrink expenses and strong product markon, although these gains were partially offset by higher store payroll costs , the company said in a release.

“Our fourth quarter sales, profitability, and earnings per share were all well above our expectations. I am particularly pleased that our overall comp store sales growth of 5 per cent for the quarter was due to strong increases in comp sales and customer transactions at every division,” Ernie added.

TJX reported steady sales growth across its major divisions. Marmaxx (US) and HomeGoods (US) both recorded a 4 per cent increase. TJX Canada posted a 3 per cent rise, while TJX International, which includes Europe and Australia, grew by 6 per cent. The company continued its expansion efforts, ending the fiscal year with 5,085 stores worldwide, an increase of 131 locations, and a 2 per cent growth in total square footage.

Looking ahead to fiscal 2026 (FY26), TJX expects consolidated comparable store sales to grow by 2 to 3 per cent. The company forecasts diluted earnings per share to be between $4.34 and $4.43, reflecting an increase of 2 to 4 per cent compared to FY25. Pretax profit margin is expected to be between 11.3 per cent and 11.4 per cent, a slight decline from the previous year, primarily due to foreign currency headwinds and the expected timing of certain expenses.

For the first quarter of FY26, TJX anticipates a decline in earnings per share, projecting a range of $0.87 to $0.89, down from $0.93 in the prior year’s first quarter. The company attributed this to a lapping of a reserve release benefit from the first quarter of FY25, as well as the expected timing of expenses and lower incentive compensation accruals later in the year. Despite these near-term pressures, TJX remains optimistic about its ability to drive profitable growth and leverage its off-price business model to capture market opportunities in the coming year, the release added.

“As we begin a new year, we are confident that remaining focused on the off-price fundamentals of our great company will continue to serve us well, as it has over many decades, and as always, we will strive to beat our plans. Longer term, we see many opportunities to successfully grow our business and deliver value to even more consumers around the world,” the CEO concluded.

ALCHEMPro News Desk (HU)