Looking ahead to 2025, the one thing the TJX Cos. Inc. doesn’t have to worry about is the availability of merchandise.
“Availability of merchandise is fantastic,” Ernie L. Herrman, the off-pricer’s president and CEO, told analysts on Wednesday during a company conference call after it posted fourth-quarter earnings results. “We believe we are in a great position to execute on our merchandising plans and keep delivering our shoppers outstanding values on great brands and fashions throughout the year.”
The CEO said the company saw consistency in sales performance throughout the year across its divisions, and that each business delivered comp store sales growth of 4 percent or above. He added that sales were driven by an increase in customer transactions. Apparel and home categories were strong points at its Marmaxx division, where both saw comp sales increases. Marmaxx includes the T.J. Maxx and Marshalls banners. And at HomeGoods, the company opened its 1,000th store for the division, which saw annual sales grow to $9.4 billion.
New stores are planned across multiple divisions, including the U.S. operation and across its international markets. “We are increasing our long-term store potential to a total of 7,000 stores or over 1,900 more stores in just our existing and announced geographies,” the CEO said. The company is set to open about 100 stores in Spain, with the first to open in early 2026. He also reaffirmed the retailer’s belief that investments in its joint venture with Grupo Axo in Mexico and the investment in Brands for Less in the Middle East as a “great way to participate in the growth of off-price in difference areas of the world.”
Herrman reiterated the off-pricer’s wide demographic appeal due to offerings across good, better and best brands that appeal to most income and age groups.
“We believe we have one of the most flexible business models in retail. This allows us to buy close to need and adjust our selections as macro trends and consumer preferences change,” he said.
The company has 1,300-plus buyers around the world and its merchants source from an “ever-changing universe of more than 21,000 vendors and from more than 100 countries,” he said. The CEO noted that the retailer is continually expanding its vendor base and opening new vendors as well as new categories. That’s more obvious when visiting a store because “they just jump out” versus the items and categories a week before, noting that the company flows new goods multiple times to its stores each week.
As for the breadth of spring product, Herrman said it’s been “kicked up a notch from even last year,” adding that “that’s part of our success this past fourth quarter.
Herrman also emphasized that the primary focus remains the off-pricer’s value gap versus traditional retailers. “I am very confident that the key strengths and flexibility of our business will allow us to navigate through the current China tariff environment, just as we have successfully navigated through many other types of retail environments in our nearly 50-year history,” he told analysts.
Herrman said there could be a short-term impact from China tariffs, but that over the medium and long-term, its not an issue because direct imports from China is “an extremely small percentage of our business.” In addition, pricing strategies don’t include tariffs as a factor. He explained that buyers assess the retail level, look at what’s the out-the-door retail on an item, and then consider the TJX value gap.
“And from there, they work on the cost they can pay, and it’s really not up to them to have to worry about what the vendor is getting caught up with in terms of tariff or inflation or other costs,” he said, explaining that whether there’s tariffs or not, buyers are focused on determining the cost based off retail that the off-pricer can price the goods at when it hits the sales floor.
Herrman believes that there will be more availability over the next six months, noting that the retail environment is “down a little.”
For the three months ended Feb. 1, net income slipped 0.4 percent to $1.4 billion, or $1.23 a diluted share, from $1.4 billion, or $1.22, in the year-ago quarter. Net sales inched down 0.4 percent to $16.35 billion from $16.41 billion.
TJX said comparable sales for its U.S. Marmaxx division for the quarter was up 4 percent, on top of a 5 percent gain in 2023. Comps at HomeGoods in the U.S. rose 5 percent, on top of a 7 percent gain a year ago. At TJX Canada, comps rose 10 percent, on top of a 6 percent gain a year ago, while TJX International in Europe and Australia saw a comp gain of 7 percent, on top of a 3 percent increase a year ago.
For the year, net income was up 8.7 percent to $4.86 billion, or $4.26 a diluted share, from $4.47 billion, or $3.86, in 2023. Net sales rose 4 percent to $56.36 billion from $54.22 billion.
The company ended the year with an additional 131 doors, bringing its total store network to 5,085 across the U.S., Canada, Europe and Australia.
For the first quarter, TJX is expecting consolidate comparable sales to be up 2 percent to 3 percent. It expects diluted earnings per share (EPS) in the range of 87 cents to 89 cents. For the full year Fiscal 2026, the company expects comparable store sales also to be up 2 percent to 3 percent, with diluted EPS in the range of $4.34 to $4.43.
