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The TJX Companies, Inc. (TJX - Free Report) posted fourth-quarter fiscal 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings increased year over year while sales remained unchanged from the year-ago quarter’s level. The company’s comparable store sales grew on the back of strong growth and higher customer transactions across all divisions. The company remains confident that its off-price model, compelling brand values and treasure-hunt shopping experience will continue to drive long-term success.
TJX Companies’ earnings were $1.23 per share, rising 10% year over year from adjusted earnings per share (EPS) of $1.12 reported in the year-ago quarter. The metric surpassed the Zacks Consensus Estimate of $1.16.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales came in at $16,350 million, unchanged year over year (same at constant currency). The top line surpassed the Zacks Consensus Estimate of $16,191.8 million. In the Marmaxx (U.S.) division, the company’s net sales came in at $9,971 million, down 1% year over year. Net sales amounted to $2,851 million, up 2% year over year, in the HomeGoods (United States) division. TJX Canada’s net sales came in at $1,450 million, down 1% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $2,078 million, down 1% year over year.
The company witnessed a 5% jump in consolidated comparable store sales, surpassing its expectations. This growth was primarily driven by higher customer transactions. Comparable store sales rose 4% at Marmaxx (United States), 5% at HomeGoods (United States), 10% at TJX Canada and 7% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The pretax profit margin was 11.6%, up 0.4 percentage points from the year-ago quarter’s level, supported by lower-than-anticipated inventory shrink expense and expense leverage on the above-plan sales. This was somewhat offset by increased incentive compensation accruals.
The gross profit margin came in at 30.5%, up 0.7 percentage points year over year, mainly backed by reduced inventory shrink expense and strong mark on.
The company’s selling, general and administrative (SG&A) costs, as a percent of sales, were 19.2%, a 0.3 percentage point increase, thanks to escalated store wage and payroll costs.
TJX’s Financial Health Snapshot
During fiscal 2025, the Zacks Rank #3 (Hold) company added 131 stores, ending the year with 5,085 stores.
TJX Companies ended the quarter with cash and cash equivalents of $5,335 million, long-term debt of $2,866 million and shareholders’ equity of $8,393 million. TJX generated an operating cash flow of $2.7 billion during the fourth quarter of fiscal 2025.
During the quarter, the company returned $1.3 billion to its shareholders. TJX Companies repurchased $853 million worth of stock, retiring 6.9 million shares. The company paid out $421 million in shareholder dividends in the same time frame. In fiscal 2025, TJX returned $4.1 billion to its shareholders. Management expects to make share repurchases worth $2-$2.5 billion in the fiscal year ending Jan. 31, 2026. With $1.1 billion remaining under its existing stock repurchase program, the company has approved a new buyback authorization for up to an additional $2.5 billion in TJX common stock.
The company announced plans to increase its regular quarterly dividend, expected to be declared in March 2025 and payable in June 2025, to 42.5 cents per share. This proposed increase reflects a 13% hike over the most recent dividend.
Consolidated inventories (on a per-store basis) as of Feb. 1, 2025, inched up 1% year over year on a reported and constant currency basis. The company begins fiscal 2026 with a strong inventory position, well-positioned to capitalize on market opportunities and introduce fresh product assortments in stores and online this spring.
Image Source: Zacks Investment Research
What to Expect From TJX Moving Forward?
For fiscal 2026, The TJX Companies expects consolidated comparable store sales growth of 2% to 3%. The full-year pretax profit margin is projected to range between 11.3% and 11.4%, reflecting a 0.1 to 0.2 percentage point decline compared to 11.5% in the prior year. In addition, fiscal 2026 EPS are forecasted to be between $4.34 and $4.43, marking a 2% to 4% increase from the previous year’s $4.26 EPS.
Foreign exchange headwinds are expected to have a negative impact of approximately 0.2 percentage points on the pretax profit margin and a 3% drag on EPS growth in fiscal 2026.
For the first quarter of fiscal 2026, the company anticipates consolidated comparable store sales growth of 2% to 3%. However, the pretax profit margin is expected to decline by 1 to 1.1 percentage points, reaching 10% to 10.1%, compared to 11.1% in the year-ago quarter. Quarterly EPS is projected to range between 87 and 89 cents, reflecting a 4% to 6% decline from the previous year’s level of 93 cents.
Shares of the company have lost 2.9% in the past three months against the industry’s growth of 2.4%.
DLTR delivered a negative trailing four-quarter earnings surprise of 8.7%, on average. The Zacks Consensus Estimate for Dollar Tree’s current financial-year sales implies growth of around 0.7% from the year-ago reported numbers.
Costco Wholesale Corporation (COST - Free Report) , which is engaged in the operation of membership warehouses, currently carries a Zacks Rank #2. COST delivered a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Costco’s current financial year’s sales and earnings implies growth of 7.4% and 11.9%, respectively, from the year-ago reported numbers.
Ross Stores Inc. (ROST - Free Report) operates as an off-price retailer of apparel and home accessories, primarily in the United States. It currently carries a Zacks Rank #2. ROST delivered a trailing four-quarter earnings surprise of nearly 8.5%, on average.
The Zacks Consensus Estimate for Ross Stores’ current quarter’s sales and earnings indicates growth of 3.7% and 11.2%, respectively, from the year-ago reported numbers.
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TJX Q4 Earnings & Revenues Beat Estimates, Comp Sales Rise
The TJX Companies, Inc. (TJX - Free Report) posted fourth-quarter fiscal 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings increased year over year while sales remained unchanged from the year-ago quarter’s level. The company’s comparable store sales grew on the back of strong growth and higher customer transactions across all divisions. The company remains confident that its off-price model, compelling brand values and treasure-hunt shopping experience will continue to drive long-term success.
TJX Companies’ earnings were $1.23 per share, rising 10% year over year from adjusted earnings per share (EPS) of $1.12 reported in the year-ago quarter. The metric surpassed the Zacks Consensus Estimate of $1.16.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales came in at $16,350 million, unchanged year over year (same at constant currency). The top line surpassed the Zacks Consensus Estimate of $16,191.8 million. In the Marmaxx (U.S.) division, the company’s net sales came in at $9,971 million, down 1% year over year. Net sales amounted to $2,851 million, up 2% year over year, in the HomeGoods (United States) division. TJX Canada’s net sales came in at $1,450 million, down 1% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $2,078 million, down 1% year over year.
The company witnessed a 5% jump in consolidated comparable store sales, surpassing its expectations. This growth was primarily driven by higher customer transactions. Comparable store sales rose 4% at Marmaxx (United States), 5% at HomeGoods (United States), 10% 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 11.6%, up 0.4 percentage points from the year-ago quarter’s level, supported by lower-than-anticipated inventory shrink expense and expense leverage on the above-plan sales. This was somewhat offset by increased incentive compensation accruals.
The gross profit margin came in at 30.5%, up 0.7 percentage points year over year, mainly backed by reduced inventory shrink expense and strong mark on.
The company’s selling, general and administrative (SG&A) costs, as a percent of sales, were 19.2%, a 0.3 percentage point increase, thanks to escalated store wage and payroll costs.
TJX’s Financial Health Snapshot
During fiscal 2025, the Zacks Rank #3 (Hold) company added 131 stores, ending the year with 5,085 stores.
TJX Companies ended the quarter with cash and cash equivalents of $5,335 million, long-term debt of $2,866 million and shareholders’ equity of $8,393 million. TJX generated an operating cash flow of $2.7 billion during the fourth quarter of fiscal 2025.
During the quarter, the company returned $1.3 billion to its shareholders. TJX Companies repurchased $853 million worth of stock, retiring 6.9 million shares. The company paid out $421 million in shareholder dividends in the same time frame. In fiscal 2025, TJX returned $4.1 billion to its shareholders. Management expects to make share repurchases worth $2-$2.5 billion in the fiscal year ending Jan. 31, 2026. With $1.1 billion remaining under its existing stock repurchase program, the company has approved a new buyback authorization for up to an additional $2.5 billion in TJX common stock.
The company announced plans to increase its regular quarterly dividend, expected to be declared in March 2025 and payable in June 2025, to 42.5 cents per share. This proposed increase reflects a 13% hike over the most recent dividend.
Consolidated inventories (on a per-store basis) as of Feb. 1, 2025, inched up 1% year over year on a reported and constant currency basis. The company begins fiscal 2026 with a strong inventory position, well-positioned to capitalize on market opportunities and introduce fresh product assortments in stores and online this spring.
Image Source: Zacks Investment Research
What to Expect From TJX Moving Forward?
For fiscal 2026, The TJX Companies expects consolidated comparable store sales growth of 2% to 3%. The full-year pretax profit margin is projected to range between 11.3% and 11.4%, reflecting a 0.1 to 0.2 percentage point decline compared to 11.5% in the prior year. In addition, fiscal 2026 EPS are forecasted to be between $4.34 and $4.43, marking a 2% to 4% increase from the previous year’s $4.26 EPS.
Foreign exchange headwinds are expected to have a negative impact of approximately 0.2 percentage points on the pretax profit margin and a 3% drag on EPS growth in fiscal 2026.
For the first quarter of fiscal 2026, the company anticipates consolidated comparable store sales growth of 2% to 3%. However, the pretax profit margin is expected to decline by 1 to 1.1 percentage points, reaching 10% to 10.1%, compared to 11.1% in the year-ago quarter. Quarterly EPS is projected to range between 87 and 89 cents, reflecting a 4% to 6% decline from the previous year’s level of 93 cents.
Shares of the company have lost 2.9% in the past three months against the industry’s growth of 2.4%.
Stocks Looking Red Hot
Dollar Tree Inc. (DLTR - Free Report) is an operator of discount variety stores offering merchandise and other assortments. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DLTR delivered a negative trailing four-quarter earnings surprise of 8.7%, on average. The Zacks Consensus Estimate for Dollar Tree’s current financial-year sales implies growth of around 0.7% from the year-ago reported numbers.
Costco Wholesale Corporation (COST - Free Report) , which is engaged in the operation of membership warehouses, currently carries a Zacks Rank #2. COST delivered a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Costco’s current financial year’s sales and earnings implies growth of 7.4% and 11.9%, respectively, from the year-ago reported numbers.
Ross Stores Inc. (ROST - Free Report) operates as an off-price retailer of apparel and home accessories, primarily in the United States. It currently carries a Zacks Rank #2. ROST delivered a trailing four-quarter earnings surprise of nearly 8.5%, on average.
The Zacks Consensus Estimate for Ross Stores’ current quarter’s sales and earnings indicates growth of 3.7% and 11.2%, respectively, from the year-ago reported numbers.