- Q1 consolidated comparable store sales increased 3%, at the
high-end of the Company’s plan, and were entirely driven by an
increase in customer transactions
- Q1 pretax profit margin of 11.1%, up 0.8 percentage points
versus last year and well above the Company’s plan
- Q1 diluted earnings per share of $.93, up 22% versus last
year and well above the Company’s plan
- Returned $886 million to shareholders in Q1 through share
repurchases and dividends
- Increases outlook for FY25 pretax profit margin and earnings
per share
The TJX Companies, Inc. (NYSE: TJX), the leading off-price
apparel and home fashions retailer in the U.S. and worldwide, today
announced sales and operating results for the first quarter ended
May 4, 2024. Net sales for the first quarter of Fiscal 2025 were
$12.5 billion, an increase of 6% versus the first quarter of Fiscal
2024. Consolidated comparable store sales increased 3%. Net income
for the first quarter of Fiscal 2025 was $1.1 billion and diluted
earnings per share were $.93, up 22% versus $.76 in the first
quarter of Fiscal 2024.
CEO and President
Comments
Ernie Herrman, Chief Executive Officer and President of The TJX
Companies, Inc., stated, “I am very pleased with our first quarter
performance. Overall comp store sales increased 3%, at the high-end
of our plan, and both profitability and earnings per share were
well above our expectations. Our teams across the Company executed
on our initiatives and were laser-focused on delivering consumers
exciting values on great brands and fashions and a treasure-hunt
shopping experience, every day. We saw comp sales growth at every
division entirely driven by customer transactions, which
underscores the strength of our value proposition. This also gives
us confidence in our ability to gain market share across all of our
geographies. The second quarter is off to a good start and we see
numerous opportunities for our business for the balance of the year
that we plan to pursue. Longer term, we are excited about the
potential we see to drive customer transactions and sales, capture
additional market share, and increase the profitability of
TJX.”
Comparable Store Sales by
Division
The Company’s comparable store sales by division for the first
quarter of Fiscal 2025 and Fiscal 2024 were as follows:
First Quarter
Comparable Store
Sales1
FY2025
FY2024
Marmaxx (U.S.)2
+2%
+5%
HomeGoods (U.S.)3
+4%
-7%
TJX Canada
+4%
+1%
TJX International (Europe &
Australia)
+2%
+4%
TJX
+3%
+3%
1Comparable store sales excludes
e-commerce. 2Includes TJ Maxx, Marshalls, and Sierra stores.
3Combination of HomeGoods and Homesense stores.
Net Sales by Division
The Company’s net sales by division for the first quarter of
Fiscal 2025 and Fiscal 2024 were as follows:
First Quarter Net
Sales
($ in millions)1
First Quarter FY2025
Reported Sales Growth
First Quarter FY2025
Sales Growth on a Constant
Currency Basis2
FY2025
FY2024
Marmaxx (U.S.)3
$7,750
$7,366
+5%
N.A.
HomeGoods (U.S.)4
$2,079
$1,966
+6%
N.A.
TJX Canada
$1,113
$1,038
+7%
+8%
TJX International (Europe &
Australia)5
$1,537
$1,413
+9%
+7%
TJX
$12,479
$11,783
+6%
+6%
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. 4Combination of HomeGoods and Homesense stores
(and homegoods.com for FY2024 only). 5Combination of TK Maxx and
Homesense stores, as well as TK Maxx e-commerce sites in
Europe.
Margins
For the first quarter of Fiscal 2025, the Company’s pretax
profit margin was 11.1%, up 0.8 percentage points versus last
year’s first quarter pretax profit margin of 10.3%. This was well
above the Company’s plan primarily due to a larger-than-expected
benefit from lower freight costs, a reserve release, and higher net
interest income.
Gross profit margin for the first quarter of Fiscal 2025 was
30.0%, a 1.1 percentage point increase versus the first quarter of
Fiscal 2024. This year-over-year increase was driven by a benefit
from lower freight costs and favorable markon.
Selling, general and administrative (SG&A) costs as a
percent of sales for the first quarter of Fiscal 2025 were 19.2%, a
0.2 percentage point increase versus the first quarter of Fiscal
2024. This year-over-year increase was due to incremental store
wage and payroll costs.
Net interest income benefitted first quarter Fiscal 2025 pretax
profit margin by 0.1 percentage point versus the prior 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 neutral
impact on the Company’s net sales growth in the first quarter of
Fiscal 2025 versus the prior year. The overall net impact of
foreign currency exchange rates had a $.01 positive impact on first
quarter Fiscal 2025 diluted earnings per share.
A table detailing the impact of foreign currency on TJX’s net
sales and pretax 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 to 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 May 4, 2024 were $6.2 billion, compared
to $6.4 billion at the end of the first quarter of Fiscal 2024.
Consolidated inventories on a per-store basis as of May 4, 2024,
including distribution centers, but excluding inventory in transit,
the Company’s e-commerce sites, and Sierra stores, were down 5% on
both a reported and constant currency basis. 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 pleased with its in-store inventory levels and is
confident it is well-positioned to take advantage of the
outstanding availability of quality, branded merchandise in the
marketplace and flow fresh goods to its stores and online
throughout the spring and summer.
Cash and Shareholder
Distributions
For the first quarter of Fiscal 2025, the Company generated $737
million of operating cash flow and ended the quarter with $5.1
billion of cash.
During the first quarter of Fiscal 2025, the Company returned a
total of $886 million to shareholders. The Company repurchased $509
million of TJX stock, retiring 5.3 million shares, and paid $377
million in shareholder dividends during the quarter.
The Company continues to expect to repurchase approximately $2.0
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.
Second Quarter and Full Year Fiscal
2025 Outlook
For the second quarter of Fiscal 2025, the Company is planning
consolidated comparable store sales to be up 2% to 3%, pretax
profit margin to be in the range of 10.4% to 10.5%, and diluted
earnings per share to be in the range of $.88 to $.90.
For the full year Fiscal 2025, the Company continues to plan
consolidated comparable store sales to be up 2% to 3%. The Company
is increasing its outlook for pretax profit margin to be in the
range of 11.0% to 11.1% and increasing its diluted earnings per
share outlook to be in the range of $4.03 to $4.09.
Stores by Concept
During the fiscal quarter ended May 4, 2024, the Company
increased its store count by 18 stores overall to a total of 4,972
stores and increased square footage by 0.3% versus the prior
quarter.
Store Locations1
First Quarter FY2025
Gross Square Feet
First Quarter FY2025
(in millions)
Beginning
End
Beginning
End
In the U.S.:
TJ Maxx
1,319
1,322
35.7
35.7
Marshalls
1,197
1,201
33.7
33.8
HomeGoods
919
922
21.4
21.5
Sierra
95
97
2.0
2.0
Homesense
55
59
1.5
1.6
In Canada:
Winners
302
303
8.2
8.3
HomeSense
158
158
3.7
3.7
Marshalls
106
106
2.8
2.8
In Europe:
TK Maxx
644
644
17.9
17.9
Homesense
79
78
1.5
1.5
In Australia:
TK Maxx
80
82
1.7
1.7
TJX
4,954
4,972
130.1
130.5
1Store counts above include both banners
within a combo or a superstore.
About The TJX Companies,
Inc.
The 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 4,900 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 in the communities we serve, the environment, and operating
responsibly. Additional information about TJX’s press releases,
financial information, and corporate responsibility are available
at TJX.com.
First Quarter Fiscal 2025 Earnings
Conference Call
At 11:00 a.m. ET today, Ernie Herrman, Chief Executive Officer
and President of TJX, will hold a conference call to discuss the
Company’s first quarter Fiscal 2025 results, operations, and
business trends. A real-time webcast of the call will be available
to the public at TJX.com. A replay of the call will also be
available by dialing (866) 367-5577 (toll free) or (203) 369-0233
through Tuesday, May 28, 2024, or at TJX.com.
Non-GAAP Financial
Information
The Company has used non-GAAP financial measures in this press
release. Non-GAAP financial measures refer to financial information
adjusted to exclude or include, as applicable, from financial
measures prepared in accordance with accounting principles
generally accepted in the United States (GAAP), items identified in
this press release. Non-GAAP financial measures used in this press
release include sales growth on a constant currency basis, and
inventory on a constant currency basis. The Company believes that
the presentation of adjusted financial measures is useful to
investors as it provides additional information on comparisons
between periods by excluding certain items that affect overall
comparability. The Company uses these non-GAAP financial measures
for business planning purposes, to consider underlying trends of
its business, and in measuring its performance relative to others
in the market, and believes presenting these measures also provides
information to investors and others for understanding and
evaluating trends in the Company’s operating results or measuring
performance in the same manner as the Company’s management.
Non-GAAP financial measures should be considered in addition to,
and not as an alternative for, the Company’s reported results
prepared in accordance with GAAP. The use of these non-GAAP
financial measures may differ from similar measures reported by
other companies and may not be comparable to other similarly titled
measures.
Important Information at
Website
Archived versions of the Company’s conference calls are
available in the Investors section of TJX.com after they are no
longer available by telephone, as are reconciliations of non-GAAP
financial measures to GAAP financial measures and other financial
information. The Company routinely posts information that may be
important to investors in the Investors section at TJX.com. The
Company encourages investors to consult that section of its website
regularly.
Forward-looking
Statement
Various statements made in this release are forward-looking, and
are inherently subject to a number of risks and uncertainties. All
statements that address activities, events or developments that we
intend, expect or believe may occur in the future are
forward-looking statements, including, among others, statements
regarding the Company’s anticipated operating and financial
performance, business plans and prospects, dividends and share
repurchases, second quarter and Fiscal 2025 outlook. These
statements are typically accompanied by the words “aim,”
“anticipate,” “aspire,” “believe,” “continue,” “could,” “should,”
“estimate,” “expect,” “forecast,” “goal,” “hope,” “intend,” “may,”
“plan,” “project,” “potential,” “seek,” “strive,” “target,” “will,”
“would,” or similar words, although not all forward-looking
statements contain these identifying words. Each forward-looking
statement contained in this press release is inherently subject to
risks, uncertainties and potentially inaccurate assumptions that
could cause actual results to differ materially from those
expressed or implied by such statement. We cannot guarantee that
the results and other expectations expressed, anticipated or
implied in any forward-looking statement will be realized.
Applicable risks and uncertainties include, among others, execution
of buying strategy and inventory management; customer trends and
preferences; competition; various marketing efforts; operational
and business expansion; management of large size and scale;
merchandise sourcing and transport; data security and maintenance
and development of information technology systems; labor costs and
workforce challenges; personnel recruitment, training and
retention; corporate and retail banner reputation; evolving
corporate governance and public disclosure regulations and
expectations with respect to environmental, social and governance
matters; expanding international operations; fluctuations in
quarterly operating results and market expectations; inventory or
asset loss; cash flow; mergers, acquisitions, or business
investments and divestitures, closings or business consolidations;
real estate activities; economic conditions and consumer spending;
market instability; severe weather, serious disruptions or
catastrophic events; disproportionate impact of disruptions during
this fiscal year; commodity availability and pricing; fluctuations
in currency exchange rates; compliance with laws, regulations and
orders and changes in laws, regulations and applicable accounting
standards; outcomes of litigation, legal proceedings and other
legal or regulatory matters; quality, safety and other issues with
our merchandise; tax matters; and other factors set forth under
Item 1A of our most recent Annual Report on Form 10-K, as well as
other information we file with the Securities and Exchange
Commission ( “SEC”).
We caution investors, potential investors and others not to
place considerable reliance on the forward-looking statements
contained in this release. You are encouraged to read any further
disclosures we may make in our future reports to the SEC, available
at www.sec.gov, on our website, or otherwise. Our forward-looking
statements in this release speak only as of the date of this
release, and we undertake no obligation to update or revise any of
these statements, unless required by law, even if experience or
future changes make it clear that any projected results expressed
or implied in such statements will not be realized. Our business is
subject to substantial risks and uncertainties, including those
referenced above. Investors, potential investors, and others should
give careful consideration to these risks and uncertainties.
The TJX Companies, Inc. and
Consolidated Subsidiaries
Financial Summary
(Unaudited)
(In Millions Except Per Share
Amounts)
Thirteen Weeks Ended
May 4, 2024
April 29, 2023
Net sales
$
12,479
$
11,783
Cost of sales, including buying and
occupancy costs
8,739
8,374
Selling, general and administrative
expenses
2,400
2,238
Interest (income) expense, net
(50
)
(37
)
Income before income taxes
1,390
1,208
Provision for income taxes
320
317
Net income
$
1,070
$
891
Diluted earnings per share
$
0.93
$
0.76
Cash dividends declared per share
$
0.3750
$
0.3325
Weighted average common shares –
diluted
1,146
1,165
The TJX Companies, Inc. and
Consolidated Subsidiaries
Condensed Balance Sheets
(Unaudited)
(In Millions)
May 4, 2024
April 29, 2023
Assets:
Current assets:
Cash and cash equivalents
$
5,059
$
5,025
Accounts receivable and other current
assets
1,132
1,129
Merchandise inventories
6,218
6,441
Total current assets
12,409
12,595
Net property at cost
6,622
5,899
Operating lease right of use assets
9,499
9,177
Goodwill
95
95
Other assets
1,054
915
Total assets
$
29,679
$
28,681
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable
$
4,072
$
4,304
Accrued expenses and other current
liabilities
4,413
4,121
Current portion of operating lease
liabilities
1,615
1,609
Current portion of long-term debt
—
500
Total current liabilities
10,100
10,534
Other long-term liabilities
894
865
Non-current deferred income taxes, net
156
133
Long-term operating lease liabilities
8,164
7,867
Long-term debt
2,863
2,860
Shareholders’ equity
7,502
6,422
Total liabilities and shareholders'
equity
$
29,679
$
28,681
The TJX Companies, Inc. and
Consolidated Subsidiaries
Condensed Statements of Cash
Flows
(Unaudited)
(In Millions)
Thirteen Weeks Ended
May 4, 2024
April 29, 2023
Cash flows from operating activities:
Net income
$
1,070
$
891
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
264
232
Deferred income tax provision
24
16
Share-based compensation
38
34
Changes in assets and liabilities:
(Increase) in accounts receivable and
other assets
(32
)
(37
)
(Increase) in merchandise inventories
(266
)
(624
)
(Increase) decrease in income taxes
recoverable
(3
)
73
Increase in accounts payable
219
507
(Decrease) in accrued expenses and other
liabilities
(542
)
(364
)
(Decrease) in net operating lease
liabilities
(4
)
(1
)
Other, net
(31
)
18
Net cash provided by operating
activities
737
745
Cash flows from investing activities:
Property additions
(419
)
(361
)
Purchase of investments
(16
)
(11
)
Sales and maturities of investments
8
10
Net cash (used in) investing
activities
(427
)
(362
)
Cash flows from financing activities:
Payments for repurchase of common
stock
(509
)
(492
)
Cash dividends paid
(380
)
(343
)
Proceeds from issuance of common stock
90
28
Other
(41
)
(30
)
Net cash (used in) financing
activities
(840
)
(837
)
Effect of exchange rate changes on
cash
(11
)
2
Net (decrease) in cash and cash
equivalents
(541
)
(452
)
Cash and cash equivalents at beginning of
year
5,600
5,477
Cash and cash equivalents at end of
period
$
5,059
$
5,025
The TJX Companies, Inc. and
Consolidated Subsidiaries
Selected Information by Major
Business Segment
(Unaudited)
(In Millions)
Thirteen Weeks Ended
May 4, 2024
April 29, 2023
Net sales:
In the United States:
Marmaxx
$
7,750
$
7,366
HomeGoods
2,079
1,966
TJX Canada
1,113
1,038
TJX International
1,537
1,413
Total net sales
$
12,479
$
11,783
Segment profit:
In the United States:
Marmaxx
$
1,097
$
1,028
HomeGoods
198
144
TJX Canada
137
117
TJX International
61
38
Total segment profit
1,493
1,327
General corporate expense
153
156
Interest (income) expense, net
(50
)
(37
)
Income before income taxes
$
1,390
$
1,208
The TJX Companies, Inc. and Consolidated
Subsidiaries Notes to Consolidated Condensed Statements
- During the first quarter ended May 4, 2024, the Company
returned $886 million to shareholders, repurchasing and retiring
5.3 million shares of its common stock at a cost of $509 million
and paid $377 million in shareholder dividends. In February 2024,
the Company announced that the Board of Directors had approved a
new stock repurchase program that authorizes the repurchase of up
to an additional $2.5 billion of TJX common stock from time to
time. Under this program and previously announced programs, TJX had
approximately $3.0 billion available for repurchase as of
May 4, 2024.
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Debra McConnell Global Communications (508) 390-2323
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