TJX Companies (TJX) Q3 2025 earnings summary

Executive summary

• Q3 net sales rose 6% year-over-year to $14.1 billion, with comparable store sales up 3% at the high end of guidance, driven by increased customer transactions across all divisions.

• Diluted EPS increased 11% to $1.14, and pre-tax profit margin reached 12.3%, both exceeding expectations and above plan.

• Net income for Q3 was $1.3 billion; for the first nine months, net income reached $3.5 billion.

• International expansion advanced with entry into Spain planned for FY2027 and investments in Grupo Axo (Mexico) and Brands For Less (UAE/Saudi Arabia).

• Returned $997 million to shareholders in Q3 via share repurchases and dividends.

Financial highlights

• Q3 net income was $1.3 billion, up from $1.2 billion year-over-year; nine-month net income was $3.5 billion.

• Gross margin improved to 31.6%, up 0.5 percentage points year-over-year, mainly due to higher merchandise margin.

• SG&A ratio rose slightly to 19.5%, reflecting higher store wage and payroll costs.

• Cash and cash equivalents stood at $4.7 billion at quarter-end.

• Inventory per store was down 2% year-over-year.

Outlook and guidance

• Q4 comparable store sales expected to rise 2–3%, with consolidated sales of $15.9–$16.1 billion.

• Q4 pre-tax profit margin forecasted at 10.8–10.9%, gross margin at 29.4–29.5%, and diluted EPS expected between $1.12 and $1.14.

• FY25 full-year comparable store sales expected up 3%, consolidated sales $55.9–$56.1 billion, pre-tax profit margin raised to 11.3%, and diluted EPS outlook increased to $4.15–$4.17.

• Guidance reflects reversal of Q3 timing expense benefit in Q4 and last year’s extra fiscal week.

• Plans to repurchase $2.25–$2.5 billion of stock in FY2025; capital spending expected at $2.0–$2.1 billion.