Discount Store Chain TJX Posts Strong Q4 Earnings Helped By Value Shoppers

TJX Companies Inc TJX shares traded higher on Wednesday after the fourth-quarter FY25 earnings result.

The company’s fourth-quarter FY25 sales remained flat year-on-year to $16.4 billion, beating the analyst consensus estimate of $16.20 billion.

Overall comp store sales increased 5%, well above the Company’s plan, and were driven by an increase in customer transactions.

Gross profit margin was 30.0%, a 0.7 percentage point increase versus the prior year, primarily driven by lower inventory shrink expense and strong markon.

Adjusted EPS of $1.23 beat the consensus estimate of $1.16.

The company held $5.3 billion in cash and equivalents as of February 1. The company generated $2.7 billion of operating cash flow in the quarter.

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Total inventories as of February 1, 2025 were $6.4 billion, compared to $6.0 billion last year. During the fourth quarter, the company returned a total of $1.0 billion to shareholders.

TJX said it intends to increase the quarterly dividend by 13% to $0.425, expected to be declared in March and payable in June.

"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. Throughout the year, we offered our wide range of customers compelling values on good, better, and best brands and on-point fashions, and an exciting treasure-hunt shopping experience,” said Ernie Herrman, president and CEO . 

Outlook: TJX sees FY26 comparable sales growth of 2% – 3%. The company sees FY26 EPS of $4.34 to $4.43 against a $4.59 estimate.

The company sees Q1 comparable sales growth of 2% – 3% and Q1 EPS of $0.87 – $0.89 with an estimate of $0.98.

Price Action: TJX shares are trading higher by 3.73% at $127.28 at last check Wednesday.

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