TJX expands into Mideast, increases profit, sales in Q2

The TJX Companies Inc. acquired partial ownership of Middle Eastern retailer Brands for Less as it beat Wall Street expectations for quarterly net income and sales.

The off-price giant has acquired 35% ownership of Brands for Less, a Dubai-based off-price retailer which operates more than 100 stores mostly located across the United Arab Emirates and Saudi Arabia, as well as an e-commerce site. Brands for Less is privately owned and the only major off-price retailer in the Middle East.

"As TJX seeks to continue its global growth, this transaction gives the company an opportunity to invest in an established, off-price retailer with significant growth potential," TJX said in a statement. "The company’s ownership in BFL is expected to be slightly accretive to earnings per share beginning in fiscal 2026."

This move follows the company’s recent joint venture with Grupo Axo, S.A.P.I. de C.V., an operator of global brands in Mexico and South America that includes both full- and off-price formats, to expand in Mexico.

[READ MORE: TJX Cos. to expand into Mexico through joint venture]

Quarterly results

TJX reported net income for the second quarter of its fiscal 2025 of $1.1 billion and diluted earnings per share were $.96. This was up 13% from $.85 per share the same quarter a year earlier.

Net sales for the quarter were $13.5 billion, a year-over-year increase of 6% from $12.75 billion. Consolidated comparable store sales increased 4%. 

"I am extremely pleased with our second quarter performance," said Ernie Herrman, CEO and president of The TJX Companies Inc. “Our comparable store sales increase of 4%, pretax profit margin, and earnings per share all exceeded our plans. Our overall comp sales growth was entirely driven by customer transactions, which increased at every division.”