TJX posts strong sales and earnings growth

The TJX Companies fourth quarter net sales were 16.4 billion dollars, an increase of 13 percent with comparable store sales increased 5 percent.

For the full year, net sales of 54.2 billion dollars, increased 9 percent and comparable store sales increased 5 percent.

Commenting on the results, Ernie Herrman, CEO and president of The TJX Companies, said: “Comparable store sales for the Company increased 5 percent both for the fourth quarter and full year, well above our original plans for 2023. We had a very strong finish to 2023 and started the new year in a position of strength with the first quarter off to a good start.”

TJX reports increase in earnings

Net income for the quarter was 1.4 billion dollars and diluted earnings per share were 1.22 dollars, up 37 percent, while adjusted diluted earnings per share were 1.12 dollars, up 26 percent versus last year.

Full year net income was 4.5 billion dollars and diluted earnings per share were 3.86 dollars, up 30 percent and adjusted diluted earnings per share were 3.76 dollars, up 21 percent.

Net sales for TJX's Marmaxx segment in the US increased by 5 percent in the quarter, while its HomeGoods segment posted an increase of 7 percent.

TJX, which runs T.J. Maxx, Marshall’s, Sierra and HomeGoods, also announced a share buyback plan of up to 2.5 billion dollars in fiscal 2025. The company's board plans to raise its quarterly dividend in April by 13 percent to 375 cents per share.

TJX forecasts strong growth ahead

For the first quarter of fiscal 2025, the company forecasts consolidated comparable store sales to be up 2 percent to 3 percent, pretax profit margin to be in the range of 10.5 percent to 10.6 percent, and diluted earnings per share to be in the range of 84 cents to 86 cents.

For the full year, the company projects comparable store sales to be up 2 percent to 3 percent, pretax profit margin to be in the range of 10.9 percent to 11 percent, and diluted earnings per share to be in the range of 3.94 dollars to 4.02 dollars.

During the fiscal year ended February 3, 2024, the company increased its store count by 119 stores overall to a total of 4,954 stores.