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% year-over-year to $1.14, with pre-tax profit margin improving to 12.3%, both exceeding expectations.

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

• Completed investments in Grupo Axo (Mexico) and Brands For Less (UAE/Saudi Arabia), and announced entry into Spain with TK Maxx planned for FY2027.

• 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%, mainly from higher store wage and payroll costs.

• Operating cash flow for Q3 was $1.0 billion; cash and cash equivalents at quarter-end were $4.7 billion.

• Inventory per store was down 2% year-over-year, reflecting lower distribution center holdings.

Outlook and guidance

• Q4 comparable store sales expected to rise 2–3%, with consolidated sales of $15.9–$16.1 billion and diluted EPS of $1.12–$1.14.

• Q4 pre-tax profit margin forecasted at 10.8–10.9%; gross margin at 29.4–29.5%.

• Full-year comparable store sales expected up 3%, with sales of $55.9–$56.1 billion and pre-tax profit margin raised to 11.3%.

• Full-year diluted EPS outlook increased to $4.15–$4.17, a 10–11% increase over last year.

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