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From Home Furnishing Business
TJX Companies Announce Results for Q1 of Fiscal Year 2025
May 23,
2024 by HFBusiness Staff in Business Strategy, Industry 
The TJX Companies, Inc., the off-price apparel and home fashions retailer in the U.S. and worldwide, announced sales and operating results for the first quarter ended May 4, 2024.
Net sales for the first quarter of Fiscal 2025 were $12.5 billion, an increase of 6% versus the first quarter of Fiscal 2024.
Consolidated comparable store sales increased 3%. Net income for the first quarter of Fiscal 2025 was $1.1 billion and diluted earnings per share were $.93, up 22% versus $.76 in the first quarter of Fiscal 2024.
CEO and President Comments Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am very pleased with our first quarter performance. Overall comp store sales increased 3%, at the high-end of our plan, and both profitability and earnings per share were well above our expectations.”
“Our teams across the Company executed on our initiatives and were laser-focused on delivering consumers exciting values on great brands and fashions and a treasure-hunt shopping experience, every day. We saw comp sales growth at every division entirely driven by customer transactions, which underscores the strength of our value proposition.”
“This also gives us confidence in our ability to gain market share across all of our geographies. The second quarter is off to a good start, and we see numerous opportunities for our business for the balance of the year that we plan to pursue. Longer term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share, and increase the profitability of TJX.”
Inventories
Total inventories as of May 4, 2024, were $6.2 billion, compared to $6.4 billion at the end of the first quarter of Fiscal 2024. Consolidated inventories on a per-store basis as of May 4, 2024, including distribution centers, but excluding inventory in transit, the Company’s e-commerce sites, and Sierra stores, were down 5% on both a reported and constant currency basis.
Inventory on a constant currency basis reflects inventory adjusted for the impact of foreign currency exchange rates, if any, as described above. The Company is pleased with its in-store inventory levels and is confident it is well-positioned to take advantage of the outstanding availability of quality, branded merchandise in the marketplace and flow fresh goods to its stores and online throughout the spring and summer.
Cash and Shareholder Distributions
For the first quarter of Fiscal 2025, the Company generated $737 million of operating cash flow and ended the quarter with $5.1 billion of cash.
During the first quarter of Fiscal 2025, the Company returned a total of $886 million to shareholders. The Company repurchased $509 million of TJX stock, retiring 5.3 million shares, and paid $377 million in shareholder dividends during the quarter.
The Company continues to expect to repurchase approximately $2.0 to $2.5 billion of TJX stock during the fiscal year ending February 1, 2025. The Company may adjust the amount purchased under this plan up or down depending on various factors. The Company remains committed to returning cash to its shareholders while continuing to invest in the business to support the near- and long-term growth of TJX.
Second Quarter and Full Year Fiscal 2025 Outlook
For the second quarter of Fiscal 2025, the Company is planning consolidated comparable store sales to be up 2% to 3%, pretax profit margin to be in the range of 10.4% to 10.5%, and diluted earnings per share to be in the range of $.88 to $.90.
For the full year Fiscal 2025, the Company continues to plan consolidated comparable store sales to be up 2% to 3%. The Company is increasing its outlook for pretax profit margin to be in the range of 11.0% to 11.1% and increasing its diluted earnings per share outlook to be in the range of $4.03 to $4.09.
First Quarter Fiscal 2025 Earnings Conference Call
Ernie Herrman, Chief Executive Officer and President of TJX, held a conference call to discuss the Company’s first quarter Fiscal 2025 results, operations, and business trends. A replay of the webcast will also be available by dialing (866) 367-5577 (toll free) or (203) 369-0233 through Tuesday, May 28, 2024, or at TJX.com.