10-QPeriod: Q1 FY2025

TJX COMPANIES INC /DE/ Quarterly Report for Q1 Ended May 4, 2024

Filed May 31, 2024For Securities:TJX

Summary

TJX Companies reported a strong first quarter for fiscal year 2025, with net sales increasing by 6% to $12.5 billion, driven by a 3% rise in comparable store sales and growth in customer transactions. Diluted earnings per share (EPS) saw a significant increase to $0.93, up from $0.76 in the prior year's first quarter. This improvement was supported by a higher pre-tax profit margin of 11.1% and a lower cost of sales ratio, primarily due to improved merchandise margins from reduced freight costs and better markon, partially offset by increased buying and distribution costs being expensed. The company returned substantial capital to shareholders, totaling $886 million through share repurchases and dividends. TJX continues to invest in its business, with planned capital expenditures of $2.0 billion to $2.1 billion for the full fiscal year 2025, funded by existing cash and internally generated funds. The balance sheet remains solid, with $5.1 billion in cash and cash equivalents as of May 4, 2024.

Financial Highlights

47 data points
Beta

Revenue

$12.48B

30.0% Gross Margin

Net Income

$1.07B

8.6% Net Margin

EPS (Diluted)

$0.93

Total Assets

$29.68B

Cash & Equivalents

$5.06B

Free Cash Flow

$318.00M

Financial Statements
Beta
Revenue$12.48B
Cost of Revenue$8.74B
Gross Profit$3.74B
SG&A Expenses$2.40B
Net Income$1.07B
EPS (Basic)$0.95
EPS (Diluted)$0.93
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Net sales increased 6% year-over-year to $12.5 billion for the first quarter of fiscal 2025.
  • 2Comparable store sales grew by 3%, driven by an increase in customer transactions.
  • 3Diluted EPS rose to $0.93, a significant improvement from $0.76 in the prior year's first quarter.
  • 4Pre-tax profit margin improved by 0.8 percentage points to 11.1%.
  • 5Cost of sales as a percentage of net sales decreased by 1.1 percentage points to 70.0%, driven by higher merchandise margins.
  • 6The company returned $886 million to shareholders through share repurchases ($509 million) and dividends ($380 million) in the quarter.
  • 7Inventory levels decreased by 5% on a reported and constant currency basis compared to the prior year's first quarter.

Frequently Asked Questions

For the first quarter of fiscal 2025, TJX reported a 6% increase in net sales to $12.5 billion, driven by a 3% growth in comparable store sales. Diluted earnings per share increased to $0.93 from $0.76 in the prior year. The pre-tax profit margin also improved to 11.1%, up from 10.3% in the previous year, reflecting better merchandise margins.

The cost of sales, including buying and occupancy costs, decreased by 1.1 percentage points to 70.0% of net sales. This improvement was mainly due to higher merchandise margins from lower freight costs and better markon. Selling, general, and administrative (SG&A) expenses slightly increased as a percentage of net sales to 19.2% from 19.0%, primarily due to incremental store wage and payroll costs.

TJX returned $886 million to shareholders in the first quarter through $509 million in share repurchases and $380 million in dividends. The company plans to repurchase approximately $2 billion to $2.5 billion of stock in fiscal 2025. For capital expenditures, TJX anticipates spending $2.0 billion to $2.1 billion in fiscal year 2025, primarily on store improvements, new stores, and distribution centers, funded by existing cash and internal operations.

TJX reported a 5% decrease in consolidated average per store inventories, on both a reported and constant currency basis, at the end of the first quarter of fiscal 2025 compared to the prior year. This suggests effective inventory management and a response to sales trends.