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The TJX Companies, Inc. TJX posted strong third-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. With stronger-than-expected profitability in the fiscal third quarter, management is raising its full-year guidance for pretax profit margin and earnings per share (EPS).

TJX Companies’ earnings were $1.14 per share, rising 11% year over year. The metric surpassed the Zacks Consensus Estimate of $1.09.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales came in at $14,063 million, up 6% year over year (up 5% at constant currency). The top line surpassed the Zacks Consensus Estimate of $13,960.6 million. In the Marmaxx (U.S.) division, the company’s net sales came in at $8,438 million, up 4% year over year. Net sales amounted to $2,355 million, up 7% year over year, in the HomeGoods (U.S.) division. TJX Canada’s net sales came in at $1,382 million, up 5% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,888 million, up 16% year over year.

The company witnessed a 3% jump in consolidated comparable store sales, reaching the upper end of its forecast. This growth was fully attributed to an increase in customer transactions. Comparable store sales rose 2% at Marmaxx (U.S.), 3% at HomeGoods (U.S.), 2% at TJX Canada and 7% at TJX International (Europe & Australia).

The TJX Companies, Inc. Price, Consensus and EPS Surprise

The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote

The pretax profit margin was 12.3%, up 0.3 percentage points from the year-ago quarter’s level, driven by the timing of specific expenses, cost-saving measures and an increase in net interest income.

The gross profit margin came in at 31.6%, up 0.5 percentage points year over year, mainly backed by higher merchandise margin. Selling, general and administrative (SG&A) costs, as a percent of sales, were 19.5%, a 0.1 percentage point increase.

TJX’s Financial Health Snapshot

During the quarter, the Zacks Rank #3 (Hold) company added 56 stores, ending the quarter with 5,057 stores.

TJX Companies ended the quarter with cash and cash equivalents of $4,718 million, long-term debt of $2,865 million and shareholders’ equity of $8,173 million. TJX generated an operating cash flow of $1 billion during the third quarter of fiscal 2025.

During the quarter, the company returned $997 million to shareholders. TJX Companies repurchased $574 million worth of stock, retiring 5 million shares. The company paid out $423 million in shareholder dividends in the same time frame. In the first nine months of fiscal 2025, TJX returned $2.9 billion to shareholders. Management expects to make share repurchases worth $2.25-$2.5 billion in the fiscal year ending Feb. 1, 2025.

Consolidated inventories (on a per-store basis) as of Nov. 2, 2024, fell 2% year over year on a reported and constant currency basis. Management is strategically positioned to capitalize on the exceptional availability in the marketplace, offering a diverse selection of exciting gifts both in-store and online throughout the holiday season.

TJX’s Other Key Developments

In the third quarter of fiscal 2025, the company completed a $179 million cash investment in a joint venture with Grupo Axo, a global brand operator in Mexico and South America. According to the terms of the definitive agreements, TJX holds a 49% stake, while Axo owns 51% of the joint venture.

After the quarter under review, the company acquired a 35% minority stake in Brands For Less (BFL) for $344 million. Based in Dubai, BFL is the leading off-price retailer in the region, offering branded apparel, toys and home fashions, with over 100 stores in the UAE and Saudi Arabia, along with an e-commerce platform. In addition, TJX plans to expand into Spain with its TK Maxx brand in early 2026.

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What to Expect From TJX Moving Forward?

The company has had a strong start to fourth-quarter fiscal 2025 and is excited about the opportunities ahead for the holiday season. Both in-store and online, TJX is offering customers an impressive shopping experience, featuring a wide selection of gifts at great value.

For the fiscal fourth quarter, the company expects consolidated comparable store sales to increase by 2% to 3%. The pretax profit margin is estimated to be between 10.8% and 10.9%, with EPS projected in the range of $1.12 and $1.14. The adjustment in the fiscal fourth-quarter outlook reflects the anticipated reversal of the third-quarter benefit from the timing of certain expenses.

For the fiscal 2025, the company continues to forecast consolidated comparable store sales to rise by 3%. Management has raised its pretax profit margin outlook to 11.3% and increased its EPS guidance to a range of $4.15 to $4.17 for the full year. Earlier, the company had anticipated the fiscal 2025 pretax profit margin to be nearly 11.2% and EPS in the $4.09-$4.13 band.

Shares of the company have dropped 0.5% in the past three months compared with the industry’s decline of 0.9%.

Stocks Looking Red Hot

Deckers DECK, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.6%, respectively, from the year-ago reported figures.

Dillard's, Inc. DDS, a department store retailer, presently carries a Zacks Rank #2 (Buy). DDS has a trailing four-quarter earnings surprise of 8.8%, on average.

The Zacks Consensus Estimate for Dillard's current financial-year sales suggests a dip of 5.1% from the year-ago reported figure.

Urban Outfitters Inc. URBN is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. It currently has a Zacks Rank #2.

The Zacks Consensus Estimate for Urban Outfitters’ current financial year sales and earnings indicates advancements of 5.8% and 12.3%, respectively, from the prior-year figures. URBN has a trailing four-quarter average earnings surprise of 17.6%.

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