TJX Surprises with Strong Annual Results

US-based retail group TJX Companies Inc. exceeded its own expectations in both the final quarter and the full 2024/25 fiscal year. The off-price specialist, which operates the TK Maxx and Homesense chains in Europe, also projected further growth for the current year on Tuesday.

In the past fiscal year, which ended on February 1st, the group's revenue amounted to US$56.4 billion (€53.8 billion). This represents an increase of nearly four percent compared to the previous year. On a comparable basis, same-store sales also grew by four percent, exceeding forecasts. Net income also saw surprisingly strong growth, increasing by 8.7 percent to US$4.86 billion (€4.64 billion).

Group Expects Further Revenue and Profit Growth in the Current Year

The positive results were due in no small part to a surprisingly strong final quarter. Reported revenue of US$16.3 billion was slightly below the prior-year level (-0.4 percent), which was attributed to the fact that the fourth quarter included one less sales week than the comparison period. On a comparable basis, same-store sales increased by five percent. Net income amounted to US$1.40 billion, only 0.4 percent below the prior-year quarter.

For the current 2025/26 fiscal year, management anticipates a two to three percent increase in comparable store sales. The pre-tax profit margin, which was 11.5 percent last year, is expected to decrease to 11.3 to 11.4 percent due to negative currency effects. However, diluted earnings per share are projected to increase from US$4.26 to US$4.34 to US$4.43.