We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The TJX Companies, Inc. (TJX - Free Report) posted strong third-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. With stronger-than-expected profitability in the fiscal third quarter, management is raising its full-year guidance for pretax profit margin and earnings per share (EPS).
TJX Companies’ earnings were $1.14 per share, rising 11% year over year. The metric surpassed the Zacks Consensus Estimate of $1.09.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales came in at $14,063 million, up 6% year over year (up 5% at constant currency). The top line surpassed the Zacks Consensus Estimate of $13,960.6 million. In the Marmaxx (U.S.) division, the company’s net sales came in at $8,438 million, up 4% year over year. Net sales amounted to $2,355 million, up 7% year over year, in the HomeGoods (U.S.) division. TJX Canada’s net sales came in at $1,382 million, up 5% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,888 million, up 16% year over year.
The company witnessed a 3% jump in consolidated comparable store sales, reaching the upper end of its forecast. This growth was fully attributed to an increase in customer transactions. Comparable store sales rose 2% at Marmaxx (U.S.), 3% at HomeGoods (U.S.), 2% at TJX Canada and 7% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The pretax profit margin was 12.3%, up 0.3 percentage points from the year-ago quarter’s level, driven by the timing of specific expenses, cost-saving measures and an increase in net interest income.
The gross profit margin came in at 31.6%, up 0.5 percentage points year over year, mainly backed by higher merchandise margin. Selling, general and administrative (SG&A) costs, as a percent of sales, were 19.5%, a 0.1 percentage point increase.
TJX’s Financial Health Snapshot
During the quarter, the Zacks Rank #3 (Hold) company added 56 stores, ending the quarter with 5,057 stores.
TJX Companies ended the quarter with cash and cash equivalents of $4,718 million, long-term debt of $2,865 million and shareholders’ equity of $8,173 million. TJX generated an operating cash flow of $1 billion during the third quarter of fiscal 2025.
During the quarter, the company returned $997 million to shareholders. TJX Companies repurchased $574 million worth of stock, retiring 5 million shares. The company paid out $423 million in shareholder dividends in the same time frame. In the first nine months of fiscal 2025, TJX returned $2.9 billion to shareholders. Management expects to make share repurchases worth $2.25-$2.5 billion in the fiscal year ending Feb. 1, 2025.
Consolidated inventories (on a per-store basis) as of Nov. 2, 2024, fell 2% year over year on a reported and constant currency basis. Management is strategically positioned to capitalize on the exceptional availability in the marketplace, offering a diverse selection of exciting gifts both in-store and online throughout the holiday season.
TJX’s Other Key Developments
In the third quarter of fiscal 2025, the company completed a $179 million cash investment in a joint venture with Grupo Axo, a global brand operator in Mexico and South America. According to the terms of the definitive agreements, TJX holds a 49% stake, while Axo owns 51% of the joint venture.
After the quarter under review, the company acquired a 35% minority stake in Brands For Less (BFL) for $344 million. Based in Dubai, BFL is the leading off-price retailer in the region, offering branded apparel, toys and home fashions, with over 100 stores in the UAE and Saudi Arabia, along with an e-commerce platform. In addition, TJX plans to expand into Spain with its TK Maxx brand in early 2026.
Image Source: Zacks Investment Research
What to Expect From TJX Moving Forward?
The company has had a strong start to fourth-quarter fiscal 2025 and is excited about the opportunities ahead for the holiday season. Both in-store and online, TJX is offering customers an impressive shopping experience, featuring a wide selection of gifts at great value.
For the fiscal fourth quarter, the company expects consolidated comparable store sales to increase by 2% to 3%. The pretax profit margin is estimated to be between 10.8% and 10.9%, with EPS projected in the range of $1.12 and $1.14. The adjustment in the fiscal fourth-quarter outlook reflects the anticipated reversal of the third-quarter benefit from the timing of certain expenses.
For the fiscal 2025, the company continues to forecast consolidated comparable store sales to rise by 3%. Management has raised its pretax profit margin outlook to 11.3% and increased its EPS guidance to a range of $4.15 to $4.17 for the full year. Earlier, the company had anticipated the fiscal 2025 pretax profit margin to be nearly 11.2% and EPS in the $4.09-$4.13 band.
Shares of the company have dropped 0.5% in the past three months compared with the industry’s decline of 0.9%.
Stocks Looking Red Hot
Deckers (DECK - Free Report) , a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.6%, respectively, from the year-ago reported figures.
Dillard's, Inc. (DDS - Free Report) , a department store retailer, presently carries a Zacks Rank #2 (Buy). DDS has a trailing four-quarter earnings surprise of 8.8%, on average.
The Zacks Consensus Estimate for Dillard's current financial-year sales suggests a dip of 5.1% from the year-ago reported figure.
Urban Outfitters Inc. (URBN - Free Report) is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. It currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Urban Outfitters’ current financial year sales and earnings indicates advancements of 5.8% and 12.3%, respectively, from the prior-year figures. URBN has a trailing four-quarter average earnings surprise of 17.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TJX Beats Q3 Earnings & Sales Estimates, Raises '25 EPS & Margin View
The TJX Companies, Inc. (TJX - Free Report) posted strong third-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. With stronger-than-expected profitability in the fiscal third quarter, management is raising its full-year guidance for pretax profit margin and earnings per share (EPS).
TJX Companies’ earnings were $1.14 per share, rising 11% year over year. The metric surpassed the Zacks Consensus Estimate of $1.09.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales came in at $14,063 million, up 6% year over year (up 5% at constant currency). The top line surpassed the Zacks Consensus Estimate of $13,960.6 million. In the Marmaxx (U.S.) division, the company’s net sales came in at $8,438 million, up 4% year over year. Net sales amounted to $2,355 million, up 7% year over year, in the HomeGoods (U.S.) division. TJX Canada’s net sales came in at $1,382 million, up 5% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,888 million, up 16% year over year.
The company witnessed a 3% jump in consolidated comparable store sales, reaching the upper end of its forecast. This growth was fully attributed to an increase in customer transactions. Comparable store sales rose 2% at Marmaxx (U.S.), 3% at HomeGoods (U.S.), 2% at TJX Canada and 7% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote
The pretax profit margin was 12.3%, up 0.3 percentage points from the year-ago quarter’s level, driven by the timing of specific expenses, cost-saving measures and an increase in net interest income.
The gross profit margin came in at 31.6%, up 0.5 percentage points year over year, mainly backed by higher merchandise margin. Selling, general and administrative (SG&A) costs, as a percent of sales, were 19.5%, a 0.1 percentage point increase.
TJX’s Financial Health Snapshot
During the quarter, the Zacks Rank #3 (Hold) company added 56 stores, ending the quarter with 5,057 stores.
TJX Companies ended the quarter with cash and cash equivalents of $4,718 million, long-term debt of $2,865 million and shareholders’ equity of $8,173 million. TJX generated an operating cash flow of $1 billion during the third quarter of fiscal 2025.
During the quarter, the company returned $997 million to shareholders. TJX Companies repurchased $574 million worth of stock, retiring 5 million shares. The company paid out $423 million in shareholder dividends in the same time frame. In the first nine months of fiscal 2025, TJX returned $2.9 billion to shareholders. Management expects to make share repurchases worth $2.25-$2.5 billion in the fiscal year ending Feb. 1, 2025.
Consolidated inventories (on a per-store basis) as of Nov. 2, 2024, fell 2% year over year on a reported and constant currency basis. Management is strategically positioned to capitalize on the exceptional availability in the marketplace, offering a diverse selection of exciting gifts both in-store and online throughout the holiday season.
TJX’s Other Key Developments
In the third quarter of fiscal 2025, the company completed a $179 million cash investment in a joint venture with Grupo Axo, a global brand operator in Mexico and South America. According to the terms of the definitive agreements, TJX holds a 49% stake, while Axo owns 51% of the joint venture.
After the quarter under review, the company acquired a 35% minority stake in Brands For Less (BFL) for $344 million. Based in Dubai, BFL is the leading off-price retailer in the region, offering branded apparel, toys and home fashions, with over 100 stores in the UAE and Saudi Arabia, along with an e-commerce platform. In addition, TJX plans to expand into Spain with its TK Maxx brand in early 2026.
Image Source: Zacks Investment Research
What to Expect From TJX Moving Forward?
The company has had a strong start to fourth-quarter fiscal 2025 and is excited about the opportunities ahead for the holiday season. Both in-store and online, TJX is offering customers an impressive shopping experience, featuring a wide selection of gifts at great value.
For the fiscal fourth quarter, the company expects consolidated comparable store sales to increase by 2% to 3%. The pretax profit margin is estimated to be between 10.8% and 10.9%, with EPS projected in the range of $1.12 and $1.14. The adjustment in the fiscal fourth-quarter outlook reflects the anticipated reversal of the third-quarter benefit from the timing of certain expenses.
For the fiscal 2025, the company continues to forecast consolidated comparable store sales to rise by 3%. Management has raised its pretax profit margin outlook to 11.3% and increased its EPS guidance to a range of $4.15 to $4.17 for the full year. Earlier, the company had anticipated the fiscal 2025 pretax profit margin to be nearly 11.2% and EPS in the $4.09-$4.13 band.
Shares of the company have dropped 0.5% in the past three months compared with the industry’s decline of 0.9%.
Stocks Looking Red Hot
Deckers (DECK - Free Report) , a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.6%, respectively, from the year-ago reported figures.
Dillard's, Inc. (DDS - Free Report) , a department store retailer, presently carries a Zacks Rank #2 (Buy). DDS has a trailing four-quarter earnings surprise of 8.8%, on average.
The Zacks Consensus Estimate for Dillard's current financial-year sales suggests a dip of 5.1% from the year-ago reported figure.
Urban Outfitters Inc. (URBN - Free Report) is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. It currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Urban Outfitters’ current financial year sales and earnings indicates advancements of 5.8% and 12.3%, respectively, from the prior-year figures. URBN has a trailing four-quarter average earnings surprise of 17.6%.