How much of the FY24 earnings growth was driven by one-time or calendar effects?

FY24 was a 53-week year, and the extra week contributed an estimated $0.10 to diluted EPS and about 0.1 point to full-year pretax margin. Adjusted EPS of $3.76 excludes that benefit, and it still grew 21% over FY23's adjusted $3.11. The prior-year comparison also excluded a $0.14 charge related to the Familia investment.

Is the margin improvement sustainable?

Much of the gain came from lower inventory shrink, lower freight costs, and reduced markdowns, which management highlighted as larger than expected. Those tailwinds may not repeat at the same scale. SG&A rose 1.4 points as a share of sales on higher incentive compensation and store payroll, which is a headwind. FY25 guidance of a 10.9% to 11.0% pretax margin implies roughly flat margins versus the adjusted FY24 level.

What does the FY25 outlook imply for growth?

Management guides to 2% to 3% comparable store sales growth and diluted EPS of $3.94 to $4.02 for FY25. That is about 5% to 7% EPS growth over the adjusted FY24 base of $3.76, with growth driven mainly by sales and share count reduction rather than margin expansion.

How is TJX returning capital to shareholders?

In FY24 TJX returned $4.0 billion, including $2.5 billion of buybacks (29.0 million shares) and $1.5 billion of dividends. For FY25 it plans $2.0 to $2.5 billion of repurchases and a 13% dividend increase to $0.375 per quarter, subject to board approval. The new $2.5 billion authorization is the 24th program approved since 1997.

Does this filing include audited financial statements?

No. The 8-K furnishes an earnings press release under Item 2.02, and the financial summaries are labeled unaudited. The information is furnished rather than filed, so it is not subject to Section 18 liability and is not incorporated into other filings unless specifically referenced. Audited results will appear in the annual Form 10-K.

TJX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 28, 2024. Cited figures are marked; the original filing is the authoritative source.

TJX Companies reported strong fourth-quarter and full-year fiscal 2024 results (quarter and year ended February 3, 2024, with a 14-week Q4 and 53-week year due to an extra week).

Q4 net sales rose 13% to $16.4 billion^a, consolidated comparable store sales grew 5%, entirely driven by customer transactions, and diluted EPS of $1.22 was up 37% (adjusted EPS of $1.12, up 26% on a 13-week basis). Full-year net sales reached $54.2 billion (up 9%), diluted EPS was $3.86 (up 30%), and adjusted diluted EPS was $3.76 (up 21%). Pretax profit margin expanded to 11.0% for the year, aided by lower inventory shrink, lower freight costs, and lower markdowns, though SG&A deleveraged by 1.4 points due to incentive compensation and store wage costs.

Management signaled continued confidence through capital returns and guidance. TJX plans to raise its quarterly dividend 13% to $0.375^b per share, expected to be declared in April 2024, and intends to repurchase $2.0 to $2.5 billion of stock in fiscal 2025, backed by a new $2.5 billion authorization. For fiscal 2025, the company guides to 2% to 3% comparable store sales growth, a pretax margin of 10.9% to 11.0%, and diluted EPS of $3.94 to $4.02, implying modest growth from the fiscal 2024 base once the extra week and one-time benefits are excluded.

The filing is largely a furnished earnings release under Item 2.02. Balance sheet strength is evident, with $5.6 billion^c in cash, operating cash flow of $6.1 billion, and $2.9 billion in long-term debt. Investors should monitor whether the margin gains from shrink and freight normalize, as well as sustained comp growth given the company's reliance on the value-seeking consumer.

02—Key points

Key Highlights

Q4 FY24 comparable store sales up 5% (all transaction-driven), above plan; HomeGoods comps +7%, Marmaxx +5%, TJX Canada +6%, TJX International +3%
Full-year FY24 diluted EPS of $3.86, up 30%; adjusted diluted EPS of $3.76, up 21%, well above plan
Q4 pretax margin of 11.2% (adjusted 10.9%), up about 2 points year over year, aided by lower shrink, freight, and markdowns
Full-year net sales of $54.2 billion, up 9%, with the company surpassing $50 billion in annual sales
Planned 13% dividend increase to $0.375 per quarter and $2.0 to $2.5 billion in FY25 buybacks, supported by a new $2.5 billion authorization
FY25 guidance: comps +2% to 3%, pretax margin 10.9% to 11.0%, diluted EPS $3.94 to $4.02
Strong liquidity with $5.6 billion cash and $6.1 billion operating cash flow; FY24 shareholder returns totaled $4.0 billion

03—Questions

Frequently Asked Questions

How much of the FY24 earnings growth was driven by one-time or calendar effects?
FY24 was a 53-week year, and the extra week contributed an estimated $0.10 to diluted EPS and about 0.1 point to full-year pretax margin. Adjusted EPS of $3.76 excludes that benefit, and it still grew 21% over FY23's adjusted $3.11. The prior-year comparison also excluded a $0.14 charge related to the Familia investment.
Is the margin improvement sustainable?
Much of the gain came from lower inventory shrink, lower freight costs, and reduced markdowns, which management highlighted as larger than expected. Those tailwinds may not repeat at the same scale. SG&A rose 1.4 points as a share of sales on higher incentive compensation and store payroll, which is a headwind. FY25 guidance of a 10.9% to 11.0% pretax margin implies roughly flat margins versus the adjusted FY24 level.
What does the FY25 outlook imply for growth?
Management guides to 2% to 3% comparable store sales growth and diluted EPS of $3.94 to $4.02 for FY25. That is about 5% to 7% EPS growth over the adjusted FY24 base of $3.76, with growth driven mainly by sales and share count reduction rather than margin expansion.
How is TJX returning capital to shareholders?
In FY24 TJX returned $4.0 billion, including $2.5 billion of buybacks (29.0 million shares) and $1.5 billion of dividends. For FY25 it plans $2.0 to $2.5 billion of repurchases and a 13% dividend increase to $0.375 per quarter, subject to board approval. The new $2.5 billion authorization is the 24th program approved since 1997.
Does this filing include audited financial statements?
No. The 8-K furnishes an earnings press release under Item 2.02, and the financial summaries are labeled unaudited. The information is furnished rather than filed, so it is not subject to Section 18 liability and is not incorporated into other filings unless specifically referenced. Audited results will appear in the annual Form 10-K.

04—Continue

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