TJX maintains momentum in Q4 with gains across divisions; to open 90 U.S. stores
TJX Companies ended the year on a strong note, with earnings and sales well above expectations as customers bought more goods across all its store banners.
The off-price giant remains bullish on expansion. On the earnings call, TJX president and CEO Ernie Herrman said the company was increasing its long term store potential to a total of 7,000 stores, or over 1,900 more stores, in its existing and announced geographies.
"This now reflects the long term potential for HomeGoods to expand to 1,800 stores, Sierra to expand to three twenty five stores and our base in Spain to grow to 100 stores," he told analysts.
In its current fiscal year, TJX plans to add about 40 net new stores at Maramax (includes Marshalls and Maxx) and thirty HomeGoods stores (includes nine HomeSense stores.). About 20 new Sierra stores are planned. It also plans to remodel about 500 stores and relocate approximately 40 stores.
TJX’s net income totaled $1.4 billion, or $1.23 a share, for the quarter ended Feb. 1, compared with $1.4 billion, or $1.22 a share, in the year-ago period. Analysts had expected earnings per share of $1.16.
At $16.35 billion, net sales were flat with the same quarter last year (which had one extra week), but easily topped estimates of $16.21 billion. Comparable-store sales rose 5%, more than expected.
By brand, comparable sales rose 4% at Marmaxx (includes T.J. Maxx and Marshalls) and were up 5% at HomeGoods. Comp sales jumped 10% at TJX Canada and were up 7% at TJX International.
“Our fourth quarter sales, profitability, and earnings per share were all well above our expectations,” stated Herrman in the earnings release. “We delivered outstanding top-and bottom-line results that exceeded our guidance I am particularly pleased that our overall comp store sales growth of 5% for the quarter was due to strong increases in comp sales and customer transactions at every division."
For the full fiscal year, TJX sales increased 4% to $56.4 billion (with one less selling week than the year-ago period).
“We delivered outstanding top-and bottom-line results that exceeded our guidance for the year,” stated Herrman. “We surpassed $56 billion in annual sales, drove a 4% comparable store sales increase, significantly increased profitability, and opened our 5,000th store during the year. Further, each of our divisions saw strong, consistent full year comp store sales growth of 4% or above.”
TJX has been growing its presence overseas. In June, the company announced plans to expand into Mexico through a joint venture with Grupo Axo, S.A.P.I. de C.V. In August, it acquired partial ownership of Middle Eastern off-price retailer Brands for Less.
"We see both of these as a great way to participate in the growth of off-price in different areas of the world," Herrman said on the earnings call.
Looking ahead, the company expects full-year earnings per share to fall in the range of $4.34 to $4.43, below analysts estimates of $4.58. Full-year comparable-store sales are expected to increase 2% to 3%, below estimates of a 3.4% rise.
During the fiscal year ended February 1, 2025, the company increased its store count by 131 stores overall to a total of 5,085 store including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe, and TK Maxx in Australia.
The company also operates e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe.
