TJX Companies, Inc. has reported its 10-K for the fiscal year ended February 3, 2024. The company operates as the leading off-price apparel and home fashions retailer in the U.S. and worldwide, with over 4,900 stores across various segments.
Financial Performance Highlights: Net sales increased by 9% to $54.2 billion for fiscal 2024, compared to $49.9 billion for fiscal 2023. The 53rd week in fiscal 2024 contributed an estimated 2% increase in net sales. Consolidated comp store sales increased by 5% in fiscal 2024. Diluted earnings per share were $3.86 for fiscal 2024, which included an estimated benefit of $0.10 from the 53rd week. Pre-tax profit margin for fiscal 2024 was 11.0%, a 1.7 percentage point increase compared to 9.3% for fiscal 2023. Cost of sales, including buying and occupancy costs, as a percentage of net sales was 70.0% for fiscal 2024, a 2.4 percentage point decrease compared to 72.4% for fiscal 2023. Selling, general and administrative expenses (SG&A) ratio for fiscal 2024 was 19.3%, a 1.4 percentage point increase compared to 17.9% for fiscal 2023. * The company returned $4.0 billion to shareholders through share repurchases and dividends during fiscal 2024.
Comparable Store Sales: Comp store sales increased by 5% for fiscal 2024, with U.S. comp store sales flat for fiscal 2023. Apparel comp store sales growth outperformed home comp store sales growth for fiscal 2024. * Store count increased approximately 2% and selling square footage increased approximately 3% as of February 3, 2024, compared to the same period last year.
Geographical Revenue Distribution: * The company's consolidated revenues by geography for fiscal 2024 were 78% from the United States, 9% from Canada, 12% from Europe, and 1% from Australia.
Foreign Currency Exchange Rates: * TJX's operating results are affected by foreign currency exchange rates due to changes in the value of the U.S. dollar or a division’s local currency in relation to other currencies.
Interest (Income) Expense: * Interest (income) expense, net for fiscal 2024 was $(170) million, compared to $6 million for fiscal 2023. The change was primarily due to an increase in interest income driven by higher prevailing rates and a higher average cash balance.
Provision for Income Taxes: * The company is evaluating the impacts of enacted and pending legislation, including the Inflation Reduction Act of 2022, which imposes a 15% corporate alternative minimum tax and a 1% excise tax on net stock re.
The 10-K provides an in-depth analysis of TJX's financial performance, including sales, expenses, and geographical revenue distribution, offering insights into the company's operations and strategy. Following these announcements, the company's shares moved -1.9%, and are now trading at a price of $97.61. For more information, read the company's full 10-K submission here.
