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TJX Companies (TJX) Financial Analysis: Growth and Strategic Resilience

by monexa-ai

TJX's latest financials reveal robust growth in net income and revenue, driven by its resilient off-price model and strategic capital allocation.

Business analyst studies stock charts at a desk with a purple cityscape visible through large office windows

Business analyst studies stock charts at a desk with a purple cityscape visible through large office windows

In a retail landscape often characterized by volatility, The TJX Companies, Inc. (TJX has once again demonstrated its formidable resilience, posting a robust +8.72% year-over-year increase in net income to $4.86 billion for the fiscal year ending February 1, 2025. This significant financial uplift, alongside a revenue growth of +3.95% to $56.36 billion, underscores the enduring strength of its off-price model even as broader economic pressures persist.

This strong performance, detailed in its latest financial filings, signals that the company's strategic emphasis on value-driven offerings continues to resonate deeply with consumers. As we delve into the core metrics, it becomes clear that TJX's operational efficiencies and disciplined capital allocation are key to its consistent ability to outperform, setting a compelling precedent for its future trajectory in a dynamic market.

Recent Financial Performance: A Deep Dive into FY2025 Results#

TJX's fiscal year 2025 (ended February 1, 2025) showcased impressive top-line and bottom-line expansion. Revenue climbed to $56.36 billion, marking a +3.95% increase from the prior fiscal year's $54.22 billion Monexa AI. This growth was accompanied by an even more substantial rise in profitability, with net income surging to $4.86 billion, up from $4.47 billion in FY2024, representing an +8.72% year-over-year improvement Monexa AI. This indicates effective cost management and operational leverage.

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The company's gross profit for FY2025 stood at $17.25 billion, translating to a gross profit ratio of 30.6%. This slight improvement from FY2024's 30% suggests that TJX has maintained, if not slightly enhanced, its merchandise margin despite inflationary pressures and supply chain complexities Monexa AI. Operating income also saw healthy growth, reaching $6.3 billion with an operating income ratio of 11.18%, demonstrating the company's ability to control selling, general, and administrative expenses, which were $10.95 billion for the year Monexa AI.

Notably, the diluted earnings per share (EPS) for FY2025 reached $4.25 Monexa AI, aligning closely with the trailing twelve months (TTM) EPS of $4.27 Monexa AI. This strong EPS performance is further underscored by TJX's consistent history of beating analyst estimates, including a recent actual earning result of $0.92 against an estimated $0.915 on May 21, 2025 Monexa AI. These financial results highlight TJX's operational efficiency and the robust demand for its value-oriented offerings.

Metric (USD Billions) FY2025 (Feb 1, 2025) FY2024 (Feb 3, 2024) FY2023 (Jan 28, 2023) FY2022 (Jan 29, 2022)
Revenue $56.36 $54.22 $49.94 $48.55
Gross Profit $17.25 $16.27 $13.79 $13.84
Operating Income $6.30 $5.80 $4.86 $4.75
Net Income $4.86 $4.47 $3.50 $3.28
EPS $4.25 $3.90 $3.00 $2.70

Note: EPS figures are derived from net income and share count for respective fiscal years, aligning with reported data where available. Monexa AI

Operational Resilience and Strategic Execution#

TJX's operational resilience is deeply rooted in its distinctive off-price business model. By offering brand-name merchandise at significant discounts, the company creates a compelling