US' TJX posts $14.1 bn Q3 sales, 6% YoY growth, $1.3 bn net income

The company’s Q3 pretax profit margin was 12.3 per cent, up 0.3 percentage points versus same period of last fiscal and well above the company’s plan. The diluted earnings per share (EPS) of the company was $1.14, up by 11 per cent YoY versus same period last fiscal and well above the company’s plan, said TJX Companies in a press release.

The company declared cash dividends of $0.375 per share in this quarter, a 13 per cent YoY increase from $0.3325 same period last year. The consolidated comparable store sales were 3 per cent YoY returned $997 million to shareholders in Q3 through share repurchases and dividends.

During the third quarter of FY25, TJX Companies expanded its store count by 56 locations, bringing the total to 5,057 stores globally, and increased gross square footage by 1.1 per cent to 132.6 million square feet. In the US, TJ Maxx added 5 stores for a total of 1,331, while Marshalls and HomeGoods grew to 1,219 and 941 stores, respectively. Sierra and Homesense also saw growth, with Sierra reaching 109 stores and Homesense expanding to 67 stores.

In Canada, Winners increased its locations to 307, while HomeSense and Marshalls added a combined 3 stores, maintaining their strong presence. In Europe, TK Maxx expanded to 653 stores, while Homesense held steady at 77 locations. In Australia, TK Maxx's footprint remained unchanged at 84 stores. This steady growth reflects the company’s ongoing commitment to expanding its global presence across key markets, said the release.

“I am very pleased with our third quarter results and the strong execution of our off-price business fundamentals by our teams. Our comp store sales increase of 3 per cent was at the high-end of our plan, and both pretax profit margin and earnings per share came in well above our expectations. Across the Company, customer transactions drove our comp sales increases, which tells us that our values and treasure hunt shopping experience are appealing to a wide range of customers,” said Ernie Herrman, chief executive officer (CEO) and president of TJX Companies, Inc.

“I want to specifically highlight our European team for their strong results, which drove the 7 per cent comp increase at our TJX International division. With our above-plan profitability results in the third quarter, we are raising our full year guidance for pretax profit margin and earnings per share. The fourth quarter is off to a strong start, and we are excited about our opportunities for the holiday selling season. In stores and online, we are offering consumers an ever-changing and inspiring shopping destination for gifts at excellent values and feel confident that there will be something for everyone when they shop us. Going forward, we continue to see great potential to successfully grow TJX around the globe well into the future,” added Herrman.

Nine-month (9M) financials

For the first nine months (9M) of fiscal 2025, net sales of the company were $40.0 billion, an increase of 6 per cent YoY versus the first nine months of fiscal 2024. Consolidated comparable store sales for the first 9M of fiscal 2025 increased 3 per cent. Net income for the first nine months of fiscal 2025 was $3.5 billion. For the first nine months of fiscal 2025, diluted EPS were $3.03, up 14 per cent versus $2.65 in the first nine months of fiscal 2024.

Outlook

For the fourth quarter (Q4) of FY25, the company continues to expect consolidated comparable store sales to be up 2 per cent to 3 per cent. The company now expects pretax profit margin to be in the range of 10.8 per cent to 10.9 per cent and diluted earnings per share to be in the range of $1.12 to $1.14. The change in the company’s Q4 pretax profit margin and earnings per share guidance is due to the expected reversal of the third quarter benefit from the timing of certain expenses.

For the full year FY25, the company continues to expect consolidated comparable store sales to be up 3 per cent. The company is increasing its outlook for pretax profit margin to be 11.3 per cent and raising its diluted earnings per share outlook to be in the range of $4.15 to $4.17.

Fibre2Fashion News Desk (SG)