The company achieved a net income of $1.1 billion for the first quarter, with diluted earnings per share (EPS) of $0.93, marking a significant 22 per cent increase from $0.76 in the first quarter of fiscal 2024. This robust performance was underpinned by a pre-tax profit margin of 11.1 per cent, which was 0.8 percentage points higher than the 10.3 per cent recorded in the same period last year, the company said in a media release.
The TJX Companies reported Q1 FY25 net sales of $12.5 billion, a 6 per cent increase from last year, with a 3 per cent rise in comparable store sales.
Net income was $1.1 billion.
Gross profit margin rose to 30 per cent.
Divisional highlights include Marmaxx at $7.75 billion, TJX Canada at $1.11 billion, and TJX International at $1.54 billion.
The company’s gross profit margin for Q1 FY25 was 30 per cent, up by 1.1 percentage points from the first quarter of fiscal 2024. However, selling, general, and administrative expenses as a percentage of sales rose slightly to 19.2 per cent, a 0.2 percentage point increase from the previous year.
Total inventories as of May 4, 2024, stood at $6.2 billion, compared to $6.4 billion at the end of the first quarter of fiscal 2024, reflecting the company’s effective inventory management.
In terms of divisional performance, Marmaxx (US) reported net sales of $7.75 billion for Q1 FY25, up from $7.37 billion in Q1 FY24, marking a 5 per cent increase. HomeGoods (US) achieved $2.08 billion in net sales, a 6 per cent rise from $1.97 billion the previous year. TJX Canada reported net sales of $1.11 billion, a 7 per cent increase from $1.04 billion, and an 8 per cent growth on a constant currency basis. TJX International (Europe and Australia) saw a 9 per cent increase in net sales to $1.54 billion, up from $1.41 billion, with a 7 per cent growth on a constant currency basis.
“I am very pleased with our first quarter performance. Overall comp store sales increased 3 per cent, at the high-end of our plan, and both profitability and earnings per share were well above our expectations. Our teams across the company executed on our initiatives and were laser-focused on delivering consumers exciting values on great brands and fashions and a treasure-hunt shopping experience, every day,” said Ernie Herrman, chief executive officer and president.
Fibre2Fashion News Desk (DP)