Gross Margin % is calculated as gross profit divided by its revenue. TJX's Gross Profit for the
three
months ended in Jan. 2024 was $4,883 Mil. TJX's Revenue for the
three
months ended in Jan. 2024 was $16,411 Mil. Therefore, TJX's Gross Margin % for the quarter that ended in Jan. 2024 was 29.75%.
The historical rank and industry rank for TJX's Gross Margin % or its related term are showing as below:
TJX'
s Gross Margin % Range Over the Past 10 Years
Min: 23.66 Med: 28.57 Max: 30
Current: 30
During the past 13 years, the highestGross Margin % of TJX was 30.00%. The lowest was 23.66%. And the median was 28.57%.
TJX's Gross Margin % is ranked worse than 62.59% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.74
vs TJX: 30.00
TJX had a gross margin of 29.75% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for TJX was 1.00% per year.
TJX Gross Margin % Historical Data
The historical data trend for TJX's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Retail subindustry, TJX's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TJX Gross Margin % Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, TJX's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TJX's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
TJX (NYSE:TJX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
TJX had a gross margin of 29.75% for the quarter that ended in Jan. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TJX Gross Margin % Related Terms
Thank you for viewing the detailed overview of TJX's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TJX Companies is the leading off-price retailer of apparel, accessories, and home merchandise in the United States. The firm leverages its more than 21,000 global vendor relationships to procure and sell brand-name merchandise at prices 20%-60% cheaper than conventional retail channels. TJX opportunistically purchases excess inventory that stems from manufacturing overruns and retail closeout sales. The off-price retailer disperses its vast and disparate merchandise across its 4,900 global stores, creating a treasure-hunt shopping experience for consumers. Over three quarters of TJX's sales are derived from the United States, primarily via the T.J. Maxx, Marshalls, and HomeGoods banners. About 10% of sales are from Canada and 12% from Europe and Australia.
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