TJX(US:TJX)2024-11-20 13:49Financial Performance - Q3 FY25 net sales reached $14.1 billion, a 6% increase compared to Q3 FY24[2] - Q3 FY25 diluted earnings per share were $1.14, up 11% from $1.03 in Q3 FY24[2] - Q3 FY25 pretax profit margin was 12.3%, an increase of 0.3 percentage points from the previous year[7] - For the first nine months of FY25, net sales totaled $40.0 billion, also a 6% increase year-over-year[3] - Net sales for the thirteen weeks ended November 2, 2024, were $14,063 million, an increase from $13,265 million for the same period last year, representing a growth of 6%[38] - Net income for the thirty-nine weeks ended November 2, 2024, was $3,466 million, compared to $3,071 million for the same period last year, reflecting an increase of 12.9%[38] - Diluted earnings per share for the third quarter were $1.14, up from $1.03 in the prior year, indicating a growth of 10.7%[38] - Total net sales for the third quarter ended November 2, 2024, reached $8.438 billion, a 4.1% increase from $8.107 billion in the same period last year[46] - Total net sales for the nine months ended November 2, 2024, were $24.633 billion, a 5.4% increase from $23.376 billion in the same period last year[46] Shareholder Returns - The company returned $997 million to shareholders in Q3 FY25 through share repurchases and dividends[14] - The company returned $997 million to shareholders in the third quarter, including $574 million for repurchasing 5.0 million shares and $423 million in dividends[49] - For the nine months ended November 2, 2024, the total return to shareholders was $2.9 billion, comprising $1.7 billion in share repurchases and $1.2 billion in dividends[49] - The company has approximately $1.9 billion available for stock repurchase under the newly approved program as of November 2, 2024[49] - The company declared cash dividends of $0.375 per share, up from $0.3325 per share in the same quarter last year, representing an increase of 12.8%[38] Inventory and Assets - Cash and cash equivalents increased to $4,718 million as of November 2, 2024, compared to $4,290 million at the end of the previous fiscal year[41] - Merchandise inventories rose to $8,371 million from $8,285 million year-over-year, showing a slight increase of 1.04%[41] - Total assets increased to $32,436 million as of November 2, 2024, compared to $30,351 million a year earlier, marking a growth of 6.9%[41] Future Plans and Expansion - The company plans to enter Spain with its TK Maxx banner in early 2026[2] - The company plans to continue expanding its store footprint and enhancing its e-commerce capabilities to drive future growth[30] - The joint venture with Grupo Axo was completed for $179 million, with TJX owning 49%[20] - A 35% stake in Brands For Less was acquired for $344 million, expanding TJX's presence in the Middle East[21] Segment Performance - Segment profit for Marmaxx in the United States was $1.207 billion, up from $1.134 billion, reflecting a 6.4% increase year-over-year[46] - Total segment profit for HomeGoods was $290 million, an increase from $228 million, representing a 27.2% year-over-year growth[46] - TJX Canada segment profit was $209 million, slightly down from $223 million, indicating a 6.3% decrease year-over-year[46] Profitability Metrics - The company expects consolidated comparable store sales to increase by 3% for the full year FY25[19] - The company anticipates a pretax profit margin of 11.3% and diluted earnings per share between $4.15 and $4.17 for FY25[19] - The company reported income before income taxes of $1.736 billion for the third quarter, compared to $1.589 billion in the prior year, marking a 9.2% increase[46] Pricing Strategy - TJX is focused on maintaining its competitive pricing strategy, offering products at prices generally 20% to 60% below full-price retailers[30] - Operating cash flow for the thirty-nine weeks ended November 2, 2024, was $3,412 million, compared to $3,257 million for the same period last year, reflecting a growth of 4.8%[43]