On February 28, 2024, TJX Companies Inc (TJX, Financial) released its 8-K filing, revealing a strong performance for both the fourth quarter and the full fiscal year of 2024. The leading off-price retailer of apparel and home fashions in the U.S. and worldwide, TJX Companies operates over 4,900 stores across nine countries and leverages its extensive vendor relationships to offer brand-name merchandise at significant discounts.
The company's Q4 consolidated comparable store sales saw a 5% increase, primarily fueled by an uptick in customer transactions. This growth contributed to a pretax profit margin of 11.2% and a 37% increase in diluted earnings per share (EPS) to $1.22, surpassing the company's expectations. Adjusted for the extra week in the quarter, diluted EPS still impressively rose by 26% to $1.12.
For the full fiscal year, TJX reported net sales of $54.2 billion, a 9% increase over the previous year, with a consistent 5% rise in consolidated comparable store sales. The full-year diluted EPS climbed 30% to $3.86, or $3.76 on an adjusted basis, reflecting a 21% increase from the prior year.
Ernie Herrman, CEO and President of TJX, expressed pride in the company's ability to exceed expectations and highlighted the strategic growth potential. He noted the company's successful navigation through the holiday season and the positive start to the new fiscal year.
"We had a very strong finish to 2023 and start the new year in a position of strength with the first quarter off to a good start. We are energized and laser focused on capitalizing on our opportunities for the year ahead and, as always, we’ll strive to beat our plans," said Herrman.
The company's financial achievements are particularly noteworthy in the Retail - Cyclical industry, where TJX's ability to maintain high inventory turnover and attract customers with its value proposition is crucial for success. The reported increase in customer transactions suggests that TJX continues to resonate with consumers despite broader retail challenges.
During FY24, TJX returned $4.0 billion to shareholders through share repurchases and dividends, demonstrating its commitment to shareholder value. Looking ahead, the company plans to increase its dividend by 13% and repurchase $2.0 to $2.5 billion of its stock in FY25.
With a robust balance sheet, including $5.6 billion in cash, and a 2% increase in store count and square footage, TJX is well-positioned for continued growth. The company's guidance for Q1 and full year FY25 includes a 2% to 3% increase in consolidated comparable store sales and a pretax profit margin in the range of 10.5% to 11.0%.
The earnings report underscores TJX's resilience and adaptability in the dynamic retail landscape, setting a positive tone for the company's prospects in the coming year.
Explore the complete 8-K earnings release (here) from TJX Companies Inc for further details.
