TJX Announces Sales & Operating Results for First Quarter 2025

May 22, 2025  by Karen Parrish in Business Strategy, Industry   

FIRST QUARTER HIGHLIGHTS
— Q1 consolidated comparable sales increased 3%, at the high end of the Company’s plan, driven by an increase in customer transactions
— Q1 pretax profit margin of 10.3%, above the Company’s plan
— Q1 diluted earnings per share of $.92, above the Company’s plan
— Returned $1.0 billion to shareholders in Q1 through share repurchases and dividends
— Maintains full year FY26 comp sales growth, pretax profit margin, and diluted earnings per share guidance

CEO and President Comments

Ernie Herrman, CEO  and president of The TJX Companies, Inc., stated, “I am very pleased with our first quarter performance. Overall comp sales increased 3%, at the high end of our plan, and both profitability and earnings per share were above our expectations. Our teams across the Company delivered consumers exciting values on great brands and fashions and a treasure-hunt shopping experience, every day."

"All divisions, both in the U.S. and internationally, drove increases in comp sales and 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 strong start, and we are laser focused on executing all the key fundamentals of our off-price retail model."

"I am convinced that our broad assortments of great brands and fashions, at compelling prices, will continue to be a tremendous draw for shoppers seeking value. Further, I am confident that the strength, flexibility, and resiliency of our off-price business model will serve us well in today’s macro environment, as it has throughout our long, successful history. I am as confident as ever that we will bring our value proposition to even more customers around the world and keep growing our sales and profitability over the long term.”

Inventory

Total inventories as of May 3, 2025, were $7.1 billion, compared to $6.2 billion at the end of the first quarter of Fiscal 2025. Consolidated inventories on a per-store basis as of May 3, 2025, including distribution centers, but excluding inventory in transit and the Company’s e-commerce sites, were up 7% on both a reported and constant currency basis versus last year. Inventory on a constant currency basis reflects inventory adjusted for the impact of foreign currency, if any, as described below. The Company is taking advantage of the outstanding availability it is seeing in the marketplace and is well-positioned to flow fresh assortments to its stores and online this spring and summer.

Cash and Shareholder Distributions

For the first quarter of Fiscal 2026, the Company generated $394 million of operating cash flow and ended the quarter with $4.3 billion of cash.

During the first quarter of Fiscal 2026, the Company returned a total of $1.0 billion to shareholders. The Company repurchased 5.1 million shares of TJX stock for a total of $613 million and paid $420 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 January 31, 2026. 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 2026 Outlook

The Company’s second quarter and full year Fiscal 2026 guidance below assumes that the current level of tariffs on imports into the U.S. from China and other countries as of May 21, 2025, will stay in place for the remainder of the year. The Company’s full year Fiscal 2026 guidance assumes that it can offset the significant incremental pressure it has experienced and continues to expect from tariffs.

For the second quarter of Fiscal 2026, the Company expects consolidated comparable sales to be up 2% to 3%. The Company is planning second quarter Fiscal 2026 pretax profit margin to be in the range of 10.4% to 10.5%, down 0.4 to 0.5 percentage points versus the prior year’s 10.9%. The Company is planning second quarter Fiscal 2026 diluted earnings per share to be in the range of $.97 to $1.00, which would represent a 1% to 4% increase versus the prior year’s $.96. The Company’s second quarter Fiscal 2026 outlook includes an incremental negative impact from tariff costs on the merchandise it was committed to at the time additional tariffs were announced in March and April of 2025.

For the full year Fiscal 2026, the Company continues to expect consolidated comparable sales to be up 2% to 3%. The Company continues to plan full year Fiscal 2026 pretax profit margin to be in the range of 11.3% to 11.4%, down 0.1 to 0.2 percentage points versus the prior year’s 11.5%. The Company continues to expect full year Fiscal 2026 diluted earnings per share to be in the range of $4.34 to $4.43, which would represent a 2% to 4% increase over the prior year’s $4.26. For the full year Fiscal 2026, the Company is maintaining its assumption that unfavorable foreign currency exchange rates and transactional foreign exchange would have an approximately 0.2 percentage point negative impact to pretax profit margin and an approximately 3% negative impact to earnings per share growth.

First Quarter Fiscal 2026 Earnings Conference Call

At 11:00 a.m. ET today, Ernie Herrman, Chief Executive Officer and President of TJX, will hold a conference call to discuss the Company’s first quarter Fiscal 2026 results, operations, and business trends. A real-time webcast of the call will be available to the public at TJX.com. A replay of the call will also be available by dialing (866) 367-5577 (toll free) or (203) 369-0233 through Tuesday, May 27, 2025, or at TJX.com.