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Yahoo
03-06-2025
- Business
- Yahoo
Citi Trends Announces First Quarter Fiscal 2025 Results
Comparable store sales growth of 9.9%; Two-year stack of 13.0% Total year-over-year sales growth of 8.3%, or $15.4 million, to $201.7 million Adjusted EBITDA* of $5.4 million, $6.2 million higher than prior year Balance sheet continues to have ample liquidity and no debt Company raises Fiscal 2025 Outlook SAVANNAH, Ga., June 03, 2025--(BUSINESS WIRE)--Citi Trends, Inc. (NASDAQ: CTRN), a leading off-price value retailer of apparel, accessories and home trends primarily for African American families in the United States, today reported results for the first quarter ended May 3, 2025. For purposes of comparison, unless otherwise stated, metrics in this release are compared to the 13-week first quarter ended May 4, 2024. Chief Executive Officer Comments Ken Seipel, Chief Executive Officer said, "I am pleased to report progress on our continued strategic transformation journey, as evidenced by our strong first quarter results on both the top and bottom line as well as stronger-than-expected adjusted EBITDA flowthrough. The tide is rising on all fronts at Citi Trends with all retail metrics trending positively and growth in both apparel and non-apparel, in all climate zones, and in all store volumes. Our sales momentum has continued with Q2 '25 quarter-to-date comparable store sales growth trending in the mid to upper-single digits." Mr. Seipel continued, "There is no doubt that there is a great deal of macro-economic uncertainty, particularly as it relates to tariffs. Our approach is to be aggressive to drive growth and remain flexible to react and adjust as needed. For the foreseeable future, our teams have successfully held net product costs flat in aggregate, finding alternative goods when needed and taking advantage of off-price opportunities created by the disrupted environment. As a result, we have mitigated near-term margin pressure and we remain optimistic about our ability to control our business results. In 2025 our go-forward focus is to finalize the improvement of key processes, consistently execute our business model and develop new capabilities for future growth. Our refined approach to serving African American customers through curated assortments, improved in-store experiences and compelling off-price value is resonating, as evidenced by increased transaction counts. The foundational improvements we've made across merchandising, supply chain and allocation have enabled faster delivery of fresher inventory while improving margins. Though we're in early transformation stages, the positive trends we're producing reinforce my confidence and belief that Citi Trends is a highly differentiated business model serving a very loyal customer, giving us a clear path to growing EBITDA to $40 million and beyond. The transformation of Citi Trends begins with our people. We are making Citi Trends a great place to work through performance-based compensation programs, improved retention and enhanced leadership training programs. For our customers, we're making Citi Trends a great place to shop by delivering exceptional store experiences that are neat, clean and organized as we fully embrace our identity as an off-price retailer. And above all, we are improving our ability to edit style and trends, while delivering extreme value branded offerings and buzz-worthy products all aimed at enhancing our value equation for our shoppers. I want to thank the entire Citi Trends organization for their unwavering support throughout our transformation journey. I'm confident that our refined operating model, dedicated people and strong customer focus position Citi Trends to deliver continued strong results, market share gains and shareholder value creation." Financial Highlights – First Quarter 2025 Total sales of $201.7 million increased $15.4 million, or 8.3%, vs. Q1 2024; comparable store sales increased 9.9% compared to Q1 2024 fueled by increases in traffic, basket and conversion, reflecting the continued impact of improved product style and value, addition of off-price extreme value and better product allocation methods Gross margin of 39.6% vs. 38.7% in Q1 2024, an increase of 90 basis points due to higher initial markup, lower shrink and lower freight expense, partially offset by planned in-season markdowns SG&A expense dollars leveraged 270 bps vs. Q1 2024, 220 bps as adjusted*, reflecting the impact of increased sales and disciplined cost controls Net income of $0.9 million, or adjusted net income* of $1.4 million, vs. net loss of $3.4 million, or adjusted net loss* of $2.7 million, in Q1 2024 Adjusted EBITDA* of $5.4 million compared to an adjusted EBITDA* loss of $0.8 million in Q1 2024 Adjusted EBITDA Flowthrough of 40%, above Company expectations, from total sales increase of $15.4 million versus last year and adjusted EBITDA increase of $6.2 million Diluted earnings per share of $0.11, or $0.17 as adjusted* vs. earnings per share of $(0.42), or $(0.32) as adjusted*, in Q1 2024 Real Estate: Remodeled 19 stores in the quarter and ended the period with 591 locations Inventory Merchandise inventory was $109.9 million at the end of the first quarter vs. $119.0 million at the end of Q1 2024, a 7.6% decrease. Average in-store inventory decreased 4.9% vs. the same period last year while supporting 9.9% comparable store sales growth. Inventory is significantly fresher than Q1 2024 with a 45% decrease in aged product, a result of the Q2 2024 mark down of slow-selling and aged inventory plus the renewed focus on in-season markdowns Cash and Liquidity The Company ended the first quarter with $41.6 million of cash, no borrowings under a $75 million credit facility and no debt Total liquidity of approximately $117.0 million at the end of the first quarter Capital Return Program Update In the first quarter of fiscal 2025, the Company repurchased 250,555 shares of its common stock for a total spend of $6.3 million. At the end of Q1 2025, $40.0 million remained available under the Company's share repurchase program. Fiscal 2025 Outlook The Company is updating its fiscal 2025 outlook as follows: Expecting full year comparable store sales growth of mid-single digits, at the high end of previous outlook of low to mid-single digit growth Full year gross margin rate expected to increase approximately 200 basis points vs. fiscal 2024, slightly below previous outlook due to an elongated timeline for the repair phase of the supply chain transformation SG&A is now expected to leverage in the range of 60 basis points to 80 basis points vs. fiscal 2024, above previous outlook on higher expected sales, inclusive of increased incentive compensation accruals related to business performance Full year EBITDA* is now expected to be in the range of $6 million to $10 million, above previous outlook, a $20 million to $24 million improvement vs. 2024 Expecting fiscal 2025 effective tax rate of approximately 0%, consistent with previous outlook The Company continues to plan to open up to 5 new stores, remodel approximately 50 stores and close up to 5 locations Expected full year capital expenditures remain in the range of $18 million to $22 million Investor Conference Call and Webcast Citi Trends will host a conference call today at 9:00 a.m. ET. The live broadcast of Citi Trends' conference call will be available online at the Company's website, under the Investor Relations section, beginning today at 9:00 a.m. ET. The online replay will follow shortly after the call and will be available for replay for one year. The live conference call can also be accessed by dialing (877) 407-0779. A replay of the conference call will be available until June 10, 2025, by dialing (844) 512-2921 and entering the passcode, 13753445. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company's responses to questions, as well as other matters discussed during the call, may contain or constitute information that has not been disclosed previously. *Non-GAAP Financial Measures The historical non-GAAP financial measures discussed herein are reconciled to their corresponding GAAP measures at the end of this press release. The Company is unable to provide a full reconciliation of the forward-looking non-GAAP financial measure used in 2025 outlook without unreasonable effort because it is not possible to predict certain of its adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of the Company' control and its unavailability could have a significant impact on its financial results. About Citi Trends Citi Trends, Inc. is a leading off-price value retailer of apparel, accessories and home trends primarily for African American families in the United States. The Company operates 590 stores located in 33 states. For more information, visit or your local store. Forward-Looking Statements All statements other than historical facts contained in this news release, including statements regarding the Company's future financial results and position, business policy and plans, objectives and expectations of management for future operations and capital allocation expectations, are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The words "believe," "may," "could," "plans," "estimate," "expects," "continue," "anticipate," "intend," "expect," "upcoming," "trend" and similar expressions, as they relate to the Company, are intended to identify forward-looking statements, although not all forward-looking statements contain such language. Statements with respect to earnings, sales or new store guidance are forward-looking statements. Investors are cautioned that any such forward-looking statements are subject to the finalization of the Company's quarter-end financial and accounting procedures, are not guarantees of future performance or results, and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Actual results or developments may differ materially from those included in the forward-looking statements as a result of various factors which are discussed in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively, and any amendments thereto, filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, uncertainties relating to general economic conditions, including inflation, energy and fuel costs, unemployment levels, and any deterioration whether caused by acts of war, terrorism, political or social unrest (including any resulting store closures, damage or loss of inventory) or other factors; changes in market interest rates and market levels of wages; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; impacts of natural disasters such as hurricanes; uncertainty and economic impact of pandemics, epidemics or other public health emergencies; transportation and distribution delays or interruptions; changes in freight rates; the Company's ability to attract and retain workers; the Company's ability to negotiate effectively the cost and purchase of merchandise inventory risks due to shifts in market demand and to manage inventory shrinkage; the Company's ability to gauge fashion trends and changing consumer preferences; consumer confidence and changes in consumer spending patterns; competition within the industry; competition in our markets; the duration and extent of any economic stimulus programs; changes in product mix; interruptions in suppliers' businesses; risks related to cybersecurity, data privacy and intellectual property; temporary changes in demand due to weather patterns; seasonality of the Company's business; the results of pending or threatened litigation; delays associated with building, remodeling, opening and operating new stores; and delays associated with building, opening or expanding new or existing distribution centers. Any forward-looking statements by the Company, with respect to guidance, the repurchase of shares pursuant to a share repurchase program, or otherwise, are intended to speak only as of the date such statements are made. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company does not undertake to publicly update any forward-looking statements in this news release or with respect to matters described herein, whether as a result of any new information, future events or otherwise. CITI TRENDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) First Quarter 2025 2024 2023 Net sales $ 201,728 $ 186,289 $ 179,688 Cost of sales (exclusive of depreciation shown separately below) (121,918 ) (114,254 ) (113,659 ) Selling, general and administrative expenses (74,887 ) (74,211 ) (70,807 ) Depreciation (4,370 ) (4,793 ) (4,681 ) Asset impairment (64 ) — — Gain on sale-leaseback — — — Income (loss) from operations 489 (6,969 ) (9,459 ) Interest income 458 849 1,023 Interest expense (76 ) (79 ) (75 ) Income (loss) before income taxes 871 (6,199 ) (8,511 ) Income tax expense — 2,773 1,876 Net income (loss) $ 871 $ (3,426 ) $ (6,635 ) Basic net income (loss) per common share $ 0.11 $ (0.42 ) $ (0.81 ) Diluted net income (loss) per common share $ 0.11 $ (0.42 ) $ (0.81 ) Weighted average number of shares outstanding Basic 8,034 8,253 8,182 Diluted 8,170 8,253 8,182 CITI TRENDS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) May 3, 2025 May 4, 2024 Assets: Cash and cash equivalents $ 41,556 $ 58,169 Inventory 109,931 119,014 Prepaid and other current assets 13,752 17,815 Assets held for sale 247 — Property and equipment, net 49,146 53,352 Operating lease right of use assets 218,360 226,918 Deferred tax assets — — Other noncurrent assets 4,416 8,834 Total assets $ 437,408 $ 484,102 Liabilities and Stockholders' Equity: Accounts payable $ 80,919 $ 72,269 Accrued liabilities 24,053 24,436 Current operating lease liabilities 44,592 45,428 Other current liabilities 908 843 Noncurrent operating lease liabilities 175,797 184,463 Other noncurrent liabilities 2,580 1,831 Total liabilities 328,849 329,270 Total stockholders' equity 108,559 154,832 Total liabilities and stockholders' equity $ 437,408 $ 484,102 CITI TRENDS, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) (in thousands, except per share data) The Company makes reference in this release to adjusted SG&A, adjusted net income (loss),adjusted diluted earnings per share, and adjusted EBITDA. The Company believes these supplemental measures reflect operating results that are more indicative of the Company's ongoing operating performance while improving comparability to prior and future periods, and as such, may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. This information is not intended to be considered in isolation or as a substitute for net income or earnings per diluted share prepared in accordance with generally accepted accounting principles (GAAP). First Quarter May 3, 2025 May 4, 2024 Reconciliation of Adjusted Operating income (loss) Operating income (loss) $ 489 $ (6,969 ) Gain on insurance — — Asset impairment 64 — Cyber incident expenses (402 ) — Other non-recurring expenses 885 1,380 Adjusted operating income (loss) $ 1,036 $ (5,589 ) First Quarter May 3, 2025 May 4, 2024 Reconciliation of Adjusted SG&A SG&A $ (74,887 ) $ (74,211 ) Cyber incident expenses (402 ) — Other non-recurring expenses 885 1,380 Adjusted SG&A $ (74,404 ) $ (72,831 ) First Quarter May 3, 2025 May 4, 2024 Reconciliation of Adjusted Net Income (Loss) Net income (loss) $ 871 $ (3,426 ) Asset impairment 64 — Cyber incident expenses (402 ) — Other non-recurring expenses 885 1,380 Tax effect — (617 ) Adjusted net income (loss) $ 1,418 $ (2,663 ) First Quarter May 3, 2025 May 4, 2024 Reconciliation of Adjusted Diluted EPS Diluted earnings (loss) per share $ 0.11 $ (0.42 ) Asset impairment $ 0.01 — Cyber incident expenses $ (0.05 ) — Other non-recurring expenses $ 0.11 0.17 Tax effect $ - (0.07 ) Adjusted diluted earnings (loss) per share $ 0.17 $ (0.32 ) First Quarter May 3, 2025 May 4, 2024 Reconciliation of Adjusted EBITDA Net income (loss) $ 871 $ (3,426 ) Interest income (458 ) (849 ) Interest expense 76 79 Income tax benefit — (2,773 ) Depreciation 4,370 4,793 Asset impairment 64 — Cyber incident expenses (402 ) - Other non-recurring expenses 885 1,380 Adjusted EBITDA $ 5,406 $ (796 ) View source version on Contacts Tom FilandroICR, Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
21-05-2025
- Business
- Business Wire
The TJX Companies, Inc. Reports Q1 FY26 Results; Comp Sales Growth of 3%; Pretax Profit Margin of 10.3% and Diluted EPS of $.92 Both Above Plan; Maintains Full Year FY26 Guidance
FRAMINGHAM, Mass.--(BUSINESS WIRE)--The TJX Companies, Inc. (NYSE: TJX), the leading off-price apparel and home fashions retailer in the U.S. and worldwide, today announced sales and operating results for the first quarter ended May 3, 2025. Net sales for the first quarter of Fiscal 2026 were $13.1 billion, an increase of 5% versus the first quarter of Fiscal 2025. First quarter Fiscal 2026 consolidated comparable sales increased 3%. Net income for the first quarter of Fiscal 2026 was $1.0 billion and diluted earnings per share were $.92 versus $.93 in the first quarter of Fiscal 2025. CEO and President Comments Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, 'I am very pleased with our first quarter performance. Overall comp sales increased 3%, at the high end of our plan, and both profitability and earnings per share were above our expectations. Our teams across the Company delivered consumers exciting values on great brands and fashions and a treasure-hunt shopping experience, every day. All divisions, both in the U.S. and internationally, drove increases in comp sales and customer transactions, which underscores the strength of our value proposition. This also gives us confidence in our ability to gain market share across all of our geographies. The second quarter is off to a strong start and we are laser focused on executing all the key fundamentals of our off-price retail model. I am convinced that our broad assortments of great brands and fashions, at compelling prices, will continue to be a tremendous draw for shoppers seeking value. Further, I am confident that the strength, flexibility, and resiliency of our off-price business model will serve us well in today's macro environment, as it has throughout our long, successful history. I am as confident as ever that we will bring our value proposition to even more customers around the world and keep growing our sales and profitability over the long term.' Comparable Sales by Division The Company's comparable sales by division for the first quarter of Fiscal 2026 and Fiscal 2025 were as follows: 1 Comparable sales for FY2026 include e-commerce. 2 Includes TJ Maxx, Marshalls, and Sierra stores as well as their e-commerce sites. 3 Includes HomeGoods and Homesense stores. 4 Includes TK Maxx and Homesense stores, as well as TK Maxx e-commerce sites in Europe. Expand Net Sales by Division The Company's net sales by division for the first quarter of Fiscal 2026 and Fiscal 2025 were as follows: 1 Net sales in TJX Canada and TJX International include the impact of foreign currency. 2 Reflects net sales adjusted for the impact of foreign currency; see Impact of Foreign Currency, below. 3 Includes TJ Maxx, Marshalls, and Sierra stores as well as their e-commerce sites. 4 Includes HomeGoods and Homesense stores. 5 Includes TK Maxx and Homesense stores, as well as TK Maxx e-commerce sites in Europe. Expand Margins For the first quarter of Fiscal 2026, the Company's pretax profit margin was 10.3%, above the Company's plan and 0.8 percentage points below last year's first quarter pretax profit margin of 11.1%. Gross profit margin for the first quarter of Fiscal 2026 was 29.5%, down 0.5 percentage points versus last year's 30.0%, primarily due to negative mark-to-market adjustments on inventory hedges. Selling, general and administrative (SG&A) costs as a percent of sales for the first quarter of Fiscal 2026 were 19.4%, a 0.2 percentage point increase versus last year's 19.2%. This is due to the lapping of a benefit from a reserve release last year and incremental store wage and payroll costs. Net interest income negatively impacted first quarter Fiscal 2026 pretax profit margin by 0.2 percentage points versus the prior year. Inventory Total inventories as of May 3, 2025 were $7.1 billion, compared to $6.2 billion at the end of the first quarter of Fiscal 2025. Consolidated inventories on a per-store basis as of May 3, 2025, including distribution centers, but excluding inventory in transit and the Company's e-commerce sites, were up 7% on both a reported and constant currency basis versus last year. Inventory on a constant currency basis reflects inventory adjusted for the impact of foreign currency, if any, as described below. The Company is taking advantage of the outstanding availability it is seeing in the marketplace and is well-positioned to flow fresh assortments to its stores and online this spring and summer. Cash and Shareholder Distributions For the first quarter of Fiscal 2026, the Company generated $394 million of operating cash flow and ended the quarter with $4.3 billion of cash. During the first quarter of Fiscal 2026, the Company returned a total of $1.0 billion to shareholders. The Company repurchased 5.1 million shares of TJX stock for a total of $613 million and paid $420 million in shareholder dividends during the quarter. The Company continues to expect to repurchase approximately $2.0 to $2.5 billion of TJX stock during the fiscal year ending January 31, 2026. The Company may adjust the amount purchased under this plan up or down depending on various factors. The Company remains committed to returning cash to its shareholders while continuing to invest in the business to support the near- and long-term growth of TJX. Second Quarter and Full Year Fiscal 2026 Outlook The Company's second quarter and full year Fiscal 2026 guidance below assumes that the current level of tariffs on imports into the U.S. from China and other countries as of May 21, 2025 will stay in place for the remainder of the year. The Company's full year Fiscal 2026 guidance assumes that it can offset the significant incremental pressure it has experienced and continues to expect from tariffs. For the second quarter of Fiscal 2026, the Company expects consolidated comparable sales to be up 2% to 3%. The Company is planning second quarter Fiscal 2026 pretax profit margin to be in the range of 10.4% to 10.5%, down 0.4 to 0.5 percentage points versus the prior year's 10.9%. The Company is planning second quarter Fiscal 2026 diluted earnings per share to be in the range of $.97 to $1.00, which would represent a 1% to 4% increase versus the prior year's $.96. The Company's second quarter Fiscal 2026 outlook includes an incremental negative impact from tariff costs on the merchandise it was committed to at the time additional tariffs were announced in March and April of 2025. For the full year Fiscal 2026, the Company continues to expect consolidated comparable sales to be up 2% to 3%. The Company continues to plan full year Fiscal 2026 pretax profit margin to be in the range of 11.3% to 11.4%, down 0.1 to 0.2 percentage points versus the prior year's 11.5%. The Company continues to expect full year Fiscal 2026 diluted earnings per share to be in the range of $4.34 to $4.43, which would represent a 2% to 4% increase over the prior year's $4.26. For the full year Fiscal 2026, the Company is maintaining its assumption that unfavorable foreign currency exchange rates and transactional foreign exchange would have an approximately 0.2 percentage point negative impact to pretax profit margin and an approximately 3% negative impact to earnings per share growth. 1 Store counts above include both banners within a combo or a superstore. Expand Impact of Foreign Currency Changes in foreign currency exchange rates affect the translation of sales and earnings of the Company's international businesses into U.S. dollars for financial reporting purposes. In addition, ordinary course, inventory-related hedging instruments are marked to market at the end of each quarter. Changes in currency exchange rates can have a material effect on the magnitude of these translations and adjustments when there is significant volatility in currency exchange rates. Given the global operations of the Company, to facilitate comparability, the Company has provided sales growth and inventory on a constant currency basis, which assumes a constant exchange rate between periods for translation based on the rate in effect for the prior period. The movement in foreign currency exchange rates had a neutral impact on the Company's net sales growth in the first quarter of Fiscal 2026 versus the prior year. The overall net impact of foreign currency exchange rates had a $.02 negative impact on first quarter Fiscal 2026 diluted earnings per share. A table detailing the impact of foreign currency on TJX's net sales and pretax profit margin, as well as those of its international businesses, can be found in the Investors section of The foreign currency exchange rate impact to diluted earnings per share does not include the impact currency exchange rates have on various transactions, which the Company refers to as 'transactional foreign exchange.' About The TJX Companies, Inc. The TJX Companies, Inc., a Fortune 100 company, is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. Our mission is to deliver great value to customers every day. We do this by offering a rapidly changing assortment of quality, fashionable, brand name, and designer merchandise at prices generally 20% to 60% below full-price retailers' regular prices on comparable merchandise. We operate over 5,100 stores across nine countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe, and TK Maxx in Australia. We also operate e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe. Our value mission extends to our corporate responsibility efforts, which are focused on supporting our Associates, giving back in the communities we serve, the environment, and operating responsibly. Additional information about TJX's press releases, financial information, and corporate responsibility are available at At 11:00 a.m. ET today, Ernie Herrman, Chief Executive Officer and President of TJX, will hold a conference call to discuss the Company's first quarter Fiscal 2026 results, operations, and business trends. A real-time webcast of the call will be available to the public at A replay of the call will also be available by dialing (866) 367-5577 (toll free) or (203) 369-0233 through Tuesday, May 27, 2025, or at Non-GAAP Financial Information The Company reports its financial results in accordance with generally accepted accounting principles in the U.S. (GAAP). However, management believes that certain non-GAAP financial measures may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods and between results in prior periods and expectations for future periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that affect overall comparability. Non-GAAP financial measures used in this press release include sales growth on a constant currency basis and inventory on a constant currency basis. The Company uses these non-GAAP financial measures in making financial, operating, and planning decisions and in evaluating the Company's performance, including relative to others in the market. Management also uses these non-GAAP measures to consider underlying trends of the Company's business and believes presenting these measures also provides information to investors and others to assist them in understanding and evaluating trends in the Company's operating results or measure performance in the same manner as the Company's management. Non-GAAP financial measures should be considered in addition to, and not as an alternative to, the Company's reported results prepared in accordance with GAAP. The use of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. Important Information at Website Archived versions of the Company's conference calls are available in the Investors section of after they are no longer available by telephone, as are reconciliations of non-GAAP financial measures to GAAP financial measures and other financial information. The Company routinely posts information that may be important to investors in the Investors section at The Company encourages investors to consult that section of its website regularly. Forward-looking Statement Various statements made in this release are forward-looking, and are inherently subject to a number of risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements, including, among others, statements regarding the Company's anticipated operating and financial performance, the impact of tariffs on its business, business plans and prospects, dividends and share repurchases, and second quarter and full year Fiscal 2026 outlook. These statements are typically accompanied by the words 'aim,' 'anticipate,' 'aspire,' 'believe,' 'continue,' 'could,' 'should,' 'estimate,' 'expect,' 'forecast,' 'goal,' 'hope,' 'intend,' 'may,' 'plan,' 'project,' 'potential,' 'seek,' 'strive,' 'target,' 'will,' 'would,' or similar words, although not all forward-looking statements contain these identifying words. Each forward-looking statement contained in this press release is inherently subject to risks, uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from those expressed or implied by such statement. We cannot guarantee that the results and other expectations expressed, anticipated or implied in any forward-looking statement will be realized. Applicable risks and uncertainties include, among others, execution of buying strategy and inventory management; customer trends and preferences; competition; various marketing efforts; operational and business expansion; management of large size and scale; merchandise sourcing and transport; international trade and tariff policies; data security and maintenance and development of information technology systems; labor costs and workforce challenges; personnel recruitment, training and retention; corporate and retail banner reputation; evolving corporate governance and public disclosure regulations and expectations with respect to environmental, social and governance matters; expanding international operations; fluctuations in quarterly operating results and market expectations; inventory or asset loss; cash flow; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; economic conditions and consumer spending; market instability; severe weather, serious disruptions or catastrophic events; disproportionate impact of disruptions during the fiscal year; commodity availability and pricing; fluctuations in currency exchange rates; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors set forth under Item 1A of our most recent Annual Report on Form 10-K, as well as other information we file with the Securities and Exchange Commission ( 'SEC'). We caution investors, potential investors and others not to place considerable reliance on the forward-looking statements contained in this release. You are encouraged to read any further disclosures we may make in our future reports to the SEC, available at on our website, or otherwise. Our forward-looking statements in this release speak only as of the date of this release, and we undertake no obligation to update or revise any of these statements, unless required by law, even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. The TJX Companies, Inc. and Consolidated Subsidiaries Condensed Balance Sheets (Unaudited) (In Millions) May 3, 2025 May 4, 2024 Assets Current assets: Cash and cash equivalents $ 4,255 $ 5,059 Accounts receivable and other current assets 1,213 1,132 Merchandise inventories 7,127 6,218 Total current assets 12,595 12,409 Net property at cost 7,554 6,622 Operating lease right of use assets 9,924 9,499 Goodwill 95 95 Other assets 1,690 1,054 Total assets $ 31,858 $ 29,679 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 4,414 $ 4,072 Accrued expenses and other current liabilities 4,753 4,413 Current portion of operating lease liabilities 1,660 1,615 Total current liabilities 10,827 10,100 Other long-term liabilities 972 894 Non-current deferred income taxes, net 154 156 Long-term operating lease liabilities 8,535 8,164 Long-term debt 2,867 2,863 Shareholders' equity 8,503 7,502 Total liabilities and shareholders' equity $ 31,858 $ 29,679 Expand The TJX Companies, Inc. and Consolidated Subsidiaries Condensed Statements of Cash Flows (Unaudited) (In Millions) Thirteen Weeks Ended May 3, 2025 May 4, 2024 Cash flows from operating activities: Net income $ 1,036 $ 1,070 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 296 264 Deferred income tax provision 8 24 Share-based compensation 33 38 Changes in assets and liabilities: (Increase) in accounts receivable and other assets (34 ) (32 ) (Increase) in merchandise inventories (604 ) (266 ) Decrease (increase) in income taxes recoverable 25 (3 ) Increase in accounts payable 101 219 (Decrease) in accrued expenses and other liabilities (540 ) (542 ) (Decrease) in net operating lease liabilities (8 ) (4 ) Other, net 81 (31 ) Net cash provided by operating activities 394 737 Cash flows from investing activities: Property additions (497 ) (419 ) Purchase of investments (17 ) (16 ) Sales and maturities of investments 11 8 Net cash (used in) investing activities (503 ) (427 ) Cash flows from financing activities: Payments for repurchase of common stock (613 ) (509 ) Cash dividends paid (424 ) (380 ) Proceeds from issuance of common stock 50 90 Other (61 ) (41 ) Net cash (used in) financing activities (1,048 ) (840 ) Effect of exchange rate changes on cash 77 (11 ) Net (decrease) in cash and cash equivalents (1,080 ) (541 ) Cash and cash equivalents at beginning of year 5,335 5,600 Cash and cash equivalents at end of period $ 4,255 $ 5,059 Expand The TJX Companies, Inc. and Consolidated Subsidiaries Selected Information by Major Business Segment (Unaudited) (In Millions) Thirteen Weeks Ended May 3, 2025 May 4, 2024 Net sales: In the United States: Marmaxx $ 8,052 $ 7,750 HomeGoods 2,254 2,079 TJX Canada 1,144 1,113 TJX International 1,661 1,537 Total net sales $ 13,111 $ 12,479 Segment profit: In the United States: Marmaxx $ 1,107 $ 1,097 HomeGoods 230 198 TJX Canada 122 137 TJX International 72 61 Total segment profit $ 1,531 $ 1,493 General corporate expense 215 153 Interest (income) expense, net (30 ) (50 ) Income before income taxes $ 1,346 $ 1,390 Expand The TJX Companies, Inc. and Consolidated Subsidiaries Notes to Consolidated Condensed Statements During the first quarter ended May 3, 2025, the Company returned $1 billion to shareholders, repurchasing and retiring 5.1 million shares of its common stock at a cost of $613 million and paid $420 million in shareholder dividends. In February 2025, the Company announced that the Board of Directors had approved a new stock repurchase program that authorizes the repurchase of up to an additional $2.5 billion of TJX common stock from time to time. Under this program and previously announced programs, TJX had approximately $2.9 billion available for repurchase as of May 3, 2025.
