TJX Q4 Earnings & Revenues Beat Estimates, Comp Sales Rise

Core Insights - TJX Companies, Inc. reported fourth-quarter fiscal 2025 results with earnings and sales exceeding expectations, showcasing strong comparable store sales growth across all divisions [1][2][4] Financial Performance - Earnings per share (EPS) reached $1.23, a 10% increase year over year from$ 1.12, surpassing the Zacks Consensus Estimate of $1.16 [2] - Net sales were$ 16,350 million, unchanged year over year, and exceeded the Zacks Consensus Estimate of $16,191.8 million [3] - Consolidated comparable store sales increased by 5%, driven by higher customer transactions, with notable growth in various divisions: 4% at Marmaxx (U.S.), 5% at HomeGoods (U.S.), 10% at TJX Canada, and 7% at TJX International [4] Profitability Metrics - The pretax profit margin improved to 11.6%, up 0.4 percentage points year over year, supported by lower inventory shrink expenses [5] - Gross profit margin was 30.5%, an increase of 0.7 percentage points year over year, primarily due to reduced inventory shrink expenses [5] - Selling, general and administrative (SG&A) costs as a percentage of sales rose to 19.2%, reflecting increased store wage and payroll costs [6] Financial Health - The company ended fiscal 2025 with 5,085 stores after adding 131 stores [7] - Cash and cash equivalents stood at$ 5,335 million, with long-term debt of $2,866 million and shareholders' equity of$ 8,393 million [7] - Operating cash flow for the fourth quarter was $2.7 billion [7] Shareholder Returns - TJX returned$ 1.3 billion to shareholders in the quarter, including $853 million in stock repurchases and$ 421 million in dividends [8] - The company plans to increase its quarterly dividend to 42.5 cents per share, reflecting a 13% increase [9] Inventory and Future Outlook - Consolidated inventories per store increased by 1% year over year, positioning the company well for market opportunities [10] - For fiscal 2026, TJX anticipates comparable store sales growth of 2% to 3% and EPS between $4.34 and$ 4.43, indicating a 2% to 4% increase from the previous year [12] - The company expects a slight decline in pretax profit margin for fiscal 2026, with foreign exchange headwinds impacting margins and EPS growth [13]