TJX Companies, Inc. has reported its financial results for the second quarter of fiscal year 2025, which ended on August 3, 2024. Here are the key highlights from the report:
- Net sales increased by 6% to $13.5 billion for the second quarter of fiscal 2025 compared to $12.8 billion in the second quarter of fiscal 2024.
- Consolidated comp store sales increased by 4% for the second quarter of fiscal 2025.
- Diluted earnings per share for the second quarter of fiscal 2025 were $0.96, up from $0.85 in the second quarter of fiscal 2024.
- Pre-tax profit margin for the second quarter of fiscal 2025 was 10.9%, a 0.5 percentage point increase compared to the same period in fiscal 2024.
- Cost of sales, including buying and occupancy costs, decreased to 69.6% of net sales in the second quarter of fiscal 2025 from 69.8% in the second quarter of fiscal 2024.
- Selling, general and administrative expenses (SG&A) as a percentage of net sales decreased to 19.8% in the second quarter of fiscal 2025 from 20.1% in the second quarter of fiscal 2024.
- The company returned $982 million to shareholders through share repurchases and dividends during the second quarter of fiscal 2025.
In addition, TJX announced two significant equity investments. The company entered into a joint venture with Grupo Axo, S.A.P.I de C.V. in Mexico and also acquired a 35% ownership stake in Brands for Less, a retailer in the UAE and Saudi Arabia.
For the first six months of fiscal 2025, net sales totaled $25.9 billion, a 6% increase over the same period in fiscal 2024. Comp store sales increased by 3% for the first six months of fiscal 2025.
The effective income tax rate was 25.1% for the second quarter of fiscal 2025 and 24.1% for the first six months of fiscal 2025, down from 25.5% and 25.8% in the same periods of fiscal 2024, respectively.
The market has reacted to these announcements by moving the company's shares -0.3% to a price of $116.99. For the full picture, make sure to review TJX's 10-Q report.
