TJX Companies Inc Reports Q2 Fiscal 2025 Financial Results
Intellectia.AI Updated: 2024-08-21
TJX Companies, Inc. Reports Q2 Fiscal 2025 Financial Results
The TJX Companies, Inc. (NYSE:TJX), a leading off-price apparel and home fashions retailer, announced its financial results for the second quarter ended August 3, 2024.
Key Financial Metrics
| Metric | Q2 Fiscal 2025 | Q2 Fiscal 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $13.5 billion | $12.7 billion | +6% |
| Earnings Per Share (EPS) | $0.96 | $0.85 | +13% |
| Pretax Profit Margin | 10.9% | 10.4% | +0.5 pp |
| Operating Cash Flow | $1.6 billion | N/A | N/A |
| Net Income | $1.1 billion | N/A | N/A |
The company achieved a 6% increase in total revenue to $13.5 billion, while diluted EPS rose by 13% to $0.96, both exceeding the company's internal plans. The pretax profit margin improved by 50 basis points year-over-year to 10.9%.
Segment Revenue Performance
| Segment | Q2 Fiscal 2025 | Q2 Fiscal 2024 | YoY Change |
|---|---|---|---|
| Marmaxx | N/A | N/A | 5% comp sales increase |
| Overall | N/A | N/A | 4% comp sales increase |
The Marmaxx division, TJX’s largest, experienced a comparable store sales increase of 5%, which significantly contributed to the overall 4% increase in comparable store sales.
Operational Data
| Operational Metric | Q2 Fiscal 2025 | Q2 Fiscal 2024 |
|---|---|---|
| Store Count | 5,001 stores | N/A |
| Total Inventories | $6.5 billion | $6.6 billion |
| Cash at End of Quarter | $5.3 billion | N/A |
| Shares Repurchased | 5.1 million | N/A |
| Amount Returned to Shareholders | $982 million | N/A |
TJX celebrated the opening of its 5,000th store worldwide. Total inventories decreased slightly to $6.5 billion, maintaining a healthy level to capitalize on quality merchandise availability.
CEO Comments
Ernie Herrman, Chief Executive Officer and President of TJX, expressed satisfaction with the company's second quarter performance, emphasizing the successful execution of their value delivery mission. Herrman noted the strong momentum as they enter the third quarter and highlighted the potential for continued market share growth and global expansion.
Dividends and Share Repurchase Program
TJX returned a total of $982 million to shareholders in Q2 through dividends ($423 million) and share repurchases ($559 million). The company expects to repurchase approximately $2.0 to $2.5 billion of its stock during Fiscal 2025.
Forward Guidance
For the third quarter of Fiscal 2025, TJX projects a 2-3% increase in consolidated comparable store sales and expects EPS in the range of $1.06 to $1.08. For the full year, the company raises its pretax profit margin outlook to approximately 11.2% and EPS guidance to $4.09 to $4.13, reflecting strong performance projections.
Stock Price Movement
The stock price increased by 2.95% following the earnings release as investors responded positively to the company’s robust financial results and improved full-year outlook.
In summary, TJX Companies, Inc. demonstrated strong financial performance in Q2 Fiscal 2025, driven by operational execution and successful customer engagement strategies, setting a positive tone for the upcoming quarters.
