Latest news with #ErnieHerrman
Business Insider
24-05-2025
- Business
- Business Insider
TJX CEO wants you to find something on the rack that 'almost feels too cheap'
It's an experience that almost anyone shopping at TJ Maxx, Marshalls, Sierra, or Home Goods eventually has: you're browsing items, see a price tag, and think, "that can't be right." Before you know it, you're a full-blown Maxxinista. As it happens, TJX CEO Ernie Herrman said the company wants you to feel a little suspicious when you encounter a sharp deal. "We want a customer to actually say, 'That almost feels too cheap,'" he said in a quarterly earnings call Wednesday. "One out of every 10 hangers I want a customer saying, 'Boy, that that almost feels too inexpensive,' strangely enough." The playbook has been working for the company, which reported strong sales and traffic gains at its family of brands despite a broader slowdown in apparel and housewares categories in recent years. Apart from a bad-weather month in February, monthly visits to TJ Maxx and Marshalls were up roughly 6% to 8% in January, March, and April of this year versus last year, according to foot traffic data from Visits to traditional apparel stores have been basically flat or down for the period. also found that not only do shoppers visit more often, they spend more time in the stores as they hunt for those surprising deals. "A significant part of this success may stem from the segment's inherent 'treasure-hunt' experience — off-price shopping cultivates a browsing mentality, encouraging visitors to linger and explore the constantly changing inventory," Bracha Arnold wrote. This year so far, found TJ Maxx shoppers spent an average of 40.3 minutes in the store, while shoppers at traditional apparel chains averaged 33.3 minutes — a difference of about 20% more time spent trying to find that suspiciously good deal. Of course, there's a lot more to the equation than simply offering low prices. "Value isn't just a function of competitive prices," Global Data retail analyst Neil Saunders said in a note. "It also comes from buying well and meeting customer needs. In our view, TJX merchants are excellent at doing at that and they are one of the key assets that will propel the company forward." On the earnings call, Herrman said TJX has a team of over 1,300 buyers who have relationships with more than 21,000 vendors across more than 100 countries around the world. And while the company is not immune from tariff impacts (Herrman said TJX directly imports about 10% of its goods), much of its sourcing is downstream from other brands and retailers that will likely bear a fair amount of the costs, rather than TJX itself. Global trade chaos now represents a key opportunity for TJX to load up on interesting merchandise, since unexpected inventory surpluses are where off-price retail shines. Jefferies retail analyst Corey Tarlowe found that retail inventories are on the rise for the first time in two years, reversing a trend of leaner, more disciplined inventory strategies in the post-COVID era. "Given these trends, the availability for TJX should remain robust. TJX management noted inventory availability in the marketplace is better than usual," Tarlowe wrote. On the earnings call, Herrman said his buyers aren't tasked with a complex set of price sheets or profit margin targets. Their primary task is finding exciting products they can offer at a compelling discount to the full-price store around the corner. "Our only contract to the customer is that we will have great value on the goods that we put out there, and it'll be below the out-the-door price of traditional retailers," he said.
Miami Herald
22-05-2025
- Business
- Miami Herald
There are more Marshalls near me than ever before, here's why
TJ Maxx, Marshalls, and HomeGoods aren't just stores to me. They're part of a family ritual that's been passed down like a cherished recipe. Growing up, a trip to Marshalls with my fashion-forward Nana wasn't just shopping -it was a full event. We'd load up a cart, grab the family-size dressing room, and try everything on together. It was one of our favorite ways to bond. We didn't need a reason to go. It was our version of quality time, more spontaneous than a brunch reservation and way more fun. Related: An alarming TikTok trend is targeting U.S. shoppers That tradition didn't end with childhood. To this day, I still make those same trips - only now it's with my mom and my aunt. Same stores, same oversized dressing room, same excitement every time we hear a price check on an unexpected deal. There's something comforting about knowing you can walk into a Marshalls or HomeGoods and never quite know what you'll find - but still walk out with something you love (and probably didn't need, but hey, worth it). And it turns out I'm not alone. TJX (TJX) , the company behind those beloved off-price stores, is seeing demand soar - and it's opening more stores to meet it. In its latest earnings report, TJX Companies - the parent of Marshalls, TJ Maxx, HomeGoods, Sierra, and Homesense - made one thing very clear: people are still showing up, and they're showing up strong. The off-price retail giant reported a 5% increase in net sales for the first quarter of fiscal 2026, totaling $13.1 billion. Comparable sales rose 3%, driven by a jump in customer transactions - not higher prices, but more people walking through the doors. And to meet that rising demand, TJX is adding even more locations. The company opened 36 new stores across its banners last quarter, bringing its total to 5,121 stores worldwide. That includes new Marshalls, TJ Maxx, and HomeGoods locations across the U.S., as well as continued expansion in Europe under the TK Maxx name. Related: Lululemon fans get surprising news about store changes Ernie Herrman, TJX CEO and president, credited the company's continued success to its compelling value proposition and treasure-hunt shopping experience. In other words, that same thrill I felt as a kid in the dressing room with my Nana? It's still working - and it's working globally. The momentum is already spilling into Q2. TJX says the quarter is off to a strong start and it's holding steady on its full-year outlook, confident that the current pace of growth will continue. TJX isn't riding a short-term retail trend. It's leaning into a long-term shift in consumer behavior. As inflation continues to pinch household budgets and shoppers get savvier about spending, stores like Marshalls and TJ Maxx offer a kind of permission to indulge without overspending. The model isn't flashy - it's dependable. Instead of chasing big e-commerce plays or ultra-fast fashion cycles, TJX keeps its focus tight: buy name-brand merchandise at a discount, pass the savings on, and keep inventory moving fast. That formula allowed TJX to post a pretax profit margin of 10.3%, which beat internal forecasts even as margin pressures from tariffs and labor costs persisted. And the company isn't just making money; it's sharing it. In Q1 alone, TJX returned $1 billion to shareholders through stock buybacks and dividends. For many shoppers, a trip to Marshalls isn't about necessity - it's about joy. It's about the possibility of finding something unexpected and feeling like you scored. And in a retail landscape full of sameness and stress, that kind of emotional payoff is powerful. More stores, strong sales, and unwavering customer loyalty? That's the kind of retail story even my Nana would have approved of. Related: Target claims big win with self-checkout changes The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Bloomberg
21-05-2025
- Business
- Bloomberg
TJ Maxx Operator Says It Has Flexibility to Offset Tariffs
TJX Cos. executives said the company's global network of vendors and flexibility on price and merchandise will help the company manage tariff pressures. 'We believe there's opportunity for us to buy better,' said Chief Executive Officer Ernie Herrman on a call with analysts.
Yahoo
21-05-2025
- Business
- Yahoo
TJX (NYSE:TJX) Posts Better-Than-Expected Sales In Q1
Off-price retail company TJX (NYSE:TJX) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 5.1% year on year to $13.11 billion. On the other hand, next quarter's revenue guidance of $13.8 billion was less impressive, coming in 2% below analysts' estimates. Its GAAP profit of $0.92 per share was in line with analysts' consensus estimates. Is now the time to buy TJX? Find out in our full research report. Revenue: $13.11 billion vs analyst estimates of $13.02 billion (5.1% year-on-year growth, 0.7% beat) EPS (GAAP): $0.92 vs analyst estimates of $0.91 (in line) Adjusted EBITDA: $1.38 billion vs analyst estimates of $1.57 billion (10.5% margin, 12.4% miss) Revenue Guidance for Q2 CY2025 is $13.8 billion at the midpoint, below analyst estimates of $14.08 billion EPS (GAAP) guidance for the full year is $4.39 at the midpoint, missing analyst estimates by 2.7% Operating Margin: 10%, in line with the same quarter last year Free Cash Flow was -$103 million, down from $318 million in the same quarter last year Locations: 5,121 at quarter end, up from 4,972 in the same quarter last year Same-Store Sales rose 3% year on year, in line with the same quarter last year Market Capitalization: $150.6 billion 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.' Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE:TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $56.99 billion in revenue over the past 12 months, TJX is a behemoth in the consumer retail sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because there are only a finite number of places to build new stores, making it harder to find incremental growth. To accelerate sales, TJX likely needs to optimize its pricing or lean into international expansion. As you can see below, TJX's 6.3% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was tepid, but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, TJX reported year-on-year revenue growth of 5.1%, and its $13.11 billion of revenue exceeded Wall Street's estimates by 0.7%. Company management is currently guiding for a 2.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.6% over the next 12 months, a slight deceleration versus the last six years. We still think its growth trajectory is attractive given its scale and suggests the market is forecasting success for its products. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow. TJX operated 5,121 locations in the latest quarter. It has opened new stores quickly over the last two years, averaging 2.7% annual growth, faster than the broader consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. TJX's demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 4.4% per year. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives TJX multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, TJX's same-store sales rose 3% year on year. This growth was a deceleration from its historical levels, showing the business is still performing well but losing a bit of steam. It was good to see TJX narrowly top analysts' revenue expectations this quarter. On the other hand, its EBITDA missed and its EPS guidance for next quarter fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 2.2% to $132.05 immediately after reporting. TJX's latest earnings report disappointed. One quarter doesn't define a company's quality, so let's explore whether the stock is a buy at the current price. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. 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.
