TJX Companies (TJX) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net sales rose 6% year-over-year to $13.5 billion, with comparable store sales up 4% driven by increased customer transactions across all divisions.

• Diluted EPS increased to $0.96, up 13% year-over-year and above plan; pre-tax profit margin improved to 10.9%, up 0.5 percentage points.

• Marmaxx, the largest division, delivered mid-single-digit comp sales and transaction growth, contributing significantly to overall performance.

• Opened 5,000th store globally, marking a major milestone and supporting long-term store growth opportunities.

• Announced joint venture with Grupo Axo in Mexico and a $360 million investment for a 35% stake in Brands For Less in the Middle East.

Financial highlights

• Net income for Q2 FY2025 was $1.1 billion, up from $989 million year-over-year.

• Gross margin increased by 20 basis points year-over-year to 30.4%, driven by strong mark-on and freight benefits, partially offset by higher supply chain costs.

• SG&A as a percent of sales decreased to 19.8%, down 0.3 points year-over-year, benefiting from expense favorability and lapping a prior reserve.

• Operating cash flow for the first six months was $2.4 billion, up $280 million from the prior year.

• Cash and cash equivalents stood at $5.3 billion as of August 3, 2024.

Outlook and guidance

• Full-year FY2025 comp store sales expected to increase ~3%; consolidated sales guidance raised to $55.8B–$56.1B.

• Pre-tax profit margin guidance increased to ~11.2%, up 30 basis points from last year’s adjusted margin.

• Full-year diluted EPS projected at $4.09–$4.13, a 9–10% increase over last year’s adjusted EPS.

• Third quarter comp sales expected to grow 2–3%, with EPS guidance of $1.06–$1.08.

• Plans to repurchase $2.0–$2.5 billion of stock and capital spending expected to be $2.0–$2.1 billion in FY2025.