The Tjx Companies Stock Earnings Reports

Key points for investors: TJX delivered a strong Q3 (ended Nov 2024) with consolidated comp store sales +3% (high end of plan), comps driven entirely by customer transactions, and diluted EPS of $1.14 (+11% YoY), outperforming guidance. Pre-tax profit margin rose to 12.3% (up 30 bps YoY). Divisional highlights: Marmaxx comps +2% (weather and hurricane impacts noted), HomeGoods comps +3% and segment profit margin up materially (benefitting from last year’s closure of HomeGoods e-commerce and other expense/freight improvements), TJX Canada comps +2% (margin impacted by non-recurring items and freight), and TJX International comps +7% (Europe and Australia strong). Inventory was up 1% overall but down 2% per store, and management reports outstanding merchandise availability heading into the holiday season. Management raised full-year guidance: pre-tax profit margin guidance increased 10 bps to 11.3%, gross margin now expected at 30.3% (+40 bps YoY), and FY diluted EPS raised to $4.15–$4.17 (implying +10–11% vs adjusted FY24). Q4 guidance: comps +2–3%, sales $15.9–16.1B, Q4 EPS $1.12–$1.14. Strategic priorities: capitalize on off-price runway (management estimates potential for 1,200+ additional stores in current countries), expand T.K. Maxx into Spain (first stores early 2026; >100-store potential), pursue strategic investments/JV to access Mexico, UAE and Saudi markets, continue aggressive holiday marketing and frequent merchandise refreshes, and maintain strong capital allocation (cash flow, buybacks, dividends). Risks/operational notes: modest freight/headwind anticipated in Q4, potential tariff scenarios monitored but management emphasizes model flexibility and value-gap protection, and some third-quarter timing expense benefits are expected to partially reverse in Q4.