TJX Companies (TJX) Q2 2025 earnings summary

Executive summary

• Q2 FY25 net sales rose 6% year-over-year to $13.5 billion, with comp store sales up 4% driven by increased customer transactions and store count up 2%.

• Diluted EPS for Q2 was $0.96, up 13% year-over-year and above expectations; pre-tax profit margin improved to 10.9% from 10.4%.

• Marmaxx, the largest division, delivered mid-single-digit comp sales and transaction growth, and the company opened its 5,000th store, marking a significant milestone.

• Strategic investments in Grupo Axo (Mexico JV) and a $360 million, 35% stake in Brands For Less (Dubai) expand global reach and are expected to be accretive to EPS.

• Returned $982 million to shareholders in Q2 via share repurchases and dividends.

Financial highlights

• Net income for Q2 FY2025 was $1.1 billion, up from $989 million year-over-year; first half net sales were $25.9 billion, up 6%.

• Gross margin rose 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 was 19.8%, down 0.3 points year-over-year, benefiting from lapping a prior-year German COVID reserve and expense favorability.

• 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.

• Dividend per share was $0.375 in Q2 FY2025, up from $0.3325 year-over-year.

Outlook and guidance

• Full-year fiscal 2025 comp store sales expected to increase ~3%; consolidated sales guidance raised to $55.8–$56.1 billion.

• Pre-tax profit margin guidance raised to ~11.2%, up 30 basis points from last year’s adjusted 10.9%.

• Full-year diluted EPS guidance raised to $4.09–$4.13, representing 9–10% growth over last year’s adjusted EPS.

• Third quarter comp store sales expected to grow 2–3%, with EPS of $1.06–$1.08, up 3–5% year-over-year.

• Expects to close investments in Axo and BFL in the second half of FY2025, totaling approximately $0.5 billion.