Framingham, Mass. — TJX Cos.’s top line sales were flat in the fourth quarter, but comps were robust across the board and profit exceeded the company’s plan.
The multi-nameplate retail company also set a new bar for annual sales, surpassing $56 billion, and opened its 5000th store during the year.
“I am particularly pleased that our overall comp store sales growth of 5% for the quarter was due to strong increases in comp sales and customer transactions at every division,” said Ernie Herrman, CEO and President of The TJX Companies.
Net sales for the fourth quarter, ended Feb. 1, were $16.4 billion, flat from the prior-year quarter. Consolidated comparable store sales rose 5%.
Traffic was the driver for comp gains in each retail division during the quarter.
- Marmaxx net sales slipped 1% to $9.97 billion, with comp up 4% on top of 5% increase in the year-ago period.
- HomeGoods U.S. sales increased 2% to $2.85 billion, with comp up 5% on top of a 7% increase in the year-ago period.
- TJX Canada sales declined 1%, with comp up a heady 10% on top of a 6% increase in the year-ago period.
- TJX International sales fell 1% to $2.07 billion, with comp up 7% on top of a 3% gain in the year-ago period.
TJX’s fourth quarter Fiscal 2025 pretax profit margin was above the high-end of its plan by 0.7 percentage points, primarily driven by lower-than-expected inventory shrink expense as well as expense leverage on the above-plan sales, partially offset by higher incentive compensation accruals.
Gross profit margin was 30.5%, up 0.7 percentage points versus last year Q4 gross profit margin of 29.8%. Fourth quarter net income was up 1% to $1.4 billion, or $1.23 per share.
For the full fiscal year, net sales increased 4% to $56.4 billion, with consolidated comp up 4%. Net income climbed 10% to $4.9 billion, or $4.26 per share.
Looking ahead, TJX Cos. is planning carefully. Its outlook assumes that unfavorable foreign currency exchange rates and transactional foreign exchange will negatively impact its pre-tax profit margin and earnings share growth.
Its full-year forecast includes:
- Consolidated comparable store sales to be up 2% to 3%.
- Pretax profit margin to be in the range of 11.3% to 11.4%, down 0.1 to 0.2 percentage points versus the prior year’s 11.5%.
- Diluted earnings per share to be in the range of $4.34 to $4.43, which would represent a 2% to 4% increase over the prior year’s $4.26.
See also:
- Eyeing growth, TJX Cos. scoops up more real estate for headquarters campus
- TJX leadership: CEO Ernie Hermann re-ups his contract