TJX COMPANIES INC DE
For the period ended Aug 3, 2024. Filed Aug 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 3, 2024 · Filed Aug 30, 2024
TJX$135.30-2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-05-04; filed 2024-05-31.
0000109198-24-000035
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-08-03; filed 2024-08-30.
0000109198-24-000048
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 126 current paragraphs.
59 unchanged; 34 reworded; 29 added; 8 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
The Thirteen Weeks (second quarter) and Twenty-Six Weeks (six months) Ended August 3, 2024
Current report
The Thirteen Weeks (second quarter) and Twenty-Six Weeks (six months) Ended July 29, 2023
Current report
–Diluted earnings per share for the second quarter of fiscal 2025 were $0.96 versus $0.85 in the second quarter of fiscal 2024.
Current report
Equity Investments
Current report
On June 7, 2024, we announced that we have entered into a definitive agreement for a joint venture with Grupo Axo, S.A.P.I de C.V. (“Axo”) in which we will hold a 49% ownership stake, with respect to Axo’s off-price, physical store business in Mexico. We expect to close this investment during the third quarter of fiscal 2025.
Current report
On August 21, 2024, we announced that we have entered into a definitive agreement to acquire a 35% ownership stake in privately held Brands for Less (“BFL”), representing a non-controlling, minority position. BFL currently operates over 100 stores, primarily in the UAE and Saudi Arabia, as well as an e-commerce business, and is the region’s only major off-price branded apparel, toys and home fashions retailer. We expect to close this investment, which is subject to customary closing conditions, later this fiscal year.
Current report
These investments will be accounted for under the equity method of accounting from the date of investment forward. We will report our share of the joint venture with Axo and BFL’s results on a one-quarter lag as their results are not expected to be available in time to be recorded in the concurrent period.
Current report
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 69.6% for the second quarter of fiscal 2025, a decrease of 0.2 percentage points compared to 69.8% for the second quarter of fiscal 2024. The decrease in the cost of sales ratio, including buying and occupancy costs, for the second quarter of fiscal 2025 was attributable to higher merchandise margin due to higher markon, partially offset by higher supply chain costs.
Current report
SG&A expenses, as a percentage of net sales, was 19.5% for the first six months of fiscal 2025, flat compared to the first six months of fiscal 2024. The SG&A ratio was flat for the first six months of fiscal 2025 due to a favorable year-over-year impact from a prior year reserve related to a German COVID program receivable, offset by incremental store wage.
Current report
Interest (income) expense, net increased for both the second quarter of fiscal 2025 and first six months ended August 3,
Current report
Net income was $1.1 billion, or $0.96 per diluted share, and $1 billion, or $0.85 per diluted share, for the second quarter of fiscal 2025 and fiscal 2024, respectively. Net income was $2.2 billion, or $1.89 per diluted share, and $1.9 billion, or $1.62 per diluted share, for the first six months of fiscal 2025 and fiscal 2024, respectively.
Current report
Net sales for Marmaxx were $8.4 billion for the second quarter of fiscal 2025, an increase of 7% compared to $7.9 billion for the second quarter of fiscal 2024. This increase in the second quarter reflects a 5% increase from comp store sales and a 2% increase from non-comp store sales.
Current report
Net sales for Marmaxx were $16.2 billion for the first six months of fiscal 2025, an increase of 6% compared to $15.3 billion for the first six months of fiscal 2024. This increase in the first six months reflects a 4% increase from comp store sales and a 2% increase from non-comp store sales.
Current report
Segment profit margin increased to 14.1% for the second quarter of fiscal 2025 compared to 13.7% for the same period last year. The increase in segment profit margin for the second quarter of fiscal 2025 was primarily driven by higher merchandise margin and expense leverage on higher comp store sales, partially offset by higher supply chain costs and incremental store wage. Merchandise margin reflects higher markon, partially offset by higher markdowns.
Current report
Segment profit margin increased to 14.1% for the first six months of fiscal 2025 compared to 13.8% for the same period last year. The increase in segment profit margin for the first six months of fiscal 2025 was primarily driven by higher merchandise margin which reflects higher markon. This was partially offset by higher supply chain costs and incremental store wage and payroll costs.
Current report
Net sales for HomeGoods were $4.2 billion for the first six months of fiscal 2025, an increase of 5%, compared to $4 billion for the first six months of fiscal 2024. This increase in the first six months reflects a 3% increase from comp store sales and a 2% increase from non-comp store sales.
Current report
For both the second quarter and first six months of fiscal 2025, the increase in comp store sales was driven by an increase in customer transactions, partially offset by a decrease in average basket. Geographically, comp store sales growth was strongest in the West and Midwest regions for both the second quarter and first six months of fiscal 2025.
Current report
Segment profit margin increased to 9.1% for the second quarter of fiscal 2025 compared to 8.7% for the same period last year. This increase in segment profit margin for the second quarter of fiscal 2025 was primarily driven by higher merchandise margin which reflects lower freight costs, partially offset by incremental store wage and payroll costs.
Current report
Net sales for TJX Canada were $2.4 billion for the first six months of fiscal 2025, an increase of 4%, compared to $2.3 billion for the first six months of fiscal 2024. This increase in the first six months reflects a 3% increase in comp store sales, a 3% increase in non-comp store sales, partially offset by a negative foreign currency exchange rate impact of 2%.
Current report
The increase in comp store sales for both the second quarter and first six months of fiscal 2025 was driven by an increase in customer transactions.
Current report
Segment profit margin decreased to 15.0% for the second quarter of fiscal 2025 compared to 15.7% for the same period last year. This decrease for the second quarter of fiscal 2025 was primarily driven by incremental store wage and payroll costs.
Current report
Net sales for TJX International were $3.2 billion for the first six months of fiscal 2025, an increase of 6%, compared to $3 billion for the first six months of fiscal 2024. This increase in the first six months reflects a 3% increase in non-comp store sales, a 2% increase in comp store sales and a positive foreign currency exchange rate impact of 1%.
Current report
E-commerce sales represented approximately 3% of TJX International’s net sales for both the second quarter and first six months of fiscal 2025 and fiscal 2024.
Current report
Segment profit margin increased to 4.4% for the second quarter of fiscal 2025 compared to 2.0% for the same period last year. Segment profit margin increased to 4.2% for the first six months of fiscal 2025 compared to 2.3% for the same period last year.
Current report
On June 7, 2024, we announced that we have entered into a definitive agreement for a joint venture with Axo in which we will hold a 49% ownership stake, with respect to Axo’s off-price, physical store business in Mexico. We expect to close this investment during the third quarter of fiscal 2025.
Current report
On August 21, 2024, we announced that we entered into a definitive agreement to make an investment for a 35% ownership stake in privately held BFL, representing a non-controlling, minority position. The transaction, which is subject to customary closing conditions, is expected to close later this fiscal year.
Current report
We expect these investments to total approximately $0.5 billion, collectively.
Current report
Debt
Current report
The cash outflows in thefirst six months of fiscal 2024 were due to the repayment of our $500 million 2.500% ten-year Notes due May 2023 during the second quarter of fiscal 2024. For further information regarding long-term debt, see Note I – Long-Term Debt and Credit Lines of Notes to Consolidated Financial Statements.
Removed paragraphs (8)
Previous report
The Thirteen Weeks (first quarter) Ended May 4, 2024
Previous report
The Thirteen Weeks (first quarter) Ended April 29, 2023
Previous report
–Diluted earnings per share for the first quarter of fiscal 2025 were $0.93 versus $0.76 in the first quarter of fiscal 2024.
Previous report
Comp store sales for the first quarter of fiscal 2025 were driven by an increase in customer transactions.
Previous report
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 70.0% for the first quarter of fiscal 2025, a decrease of 1.1 percentage points compared to 71.1% for the first quarter of fiscal 2024.
Previous report
SG&A expenses, as a percentage of net sales, was 19.2% for the first quarter of fiscal 2025, an increase of 0.2 percentage points compared to 19.0% for the first quarter of fiscal 2024.
Previous report
Segment profit margin increased to 9.5% for the first quarter of fiscal 2025 compared to 7.3% for the same period last year. This increase in segment profit margin for the first quarter of fiscal 2025 was primarily driven by higher merchandise margin which reflects lower freight costs. This was partially offset by capitalized inventory costs and investments in supply chain. Capitalized inventory costs reflect a greater portion of our buying and distribution costs being expensed in the first quarter of fiscal 2025 as compared to last year.
Previous report
E-commerce sales represented less than 4% of TJX International’s net sales for the first quarter of fiscal 2025 and fiscal 2024. In addition to tkmaxx.com, during the second quarter of fiscal 2024, TJX International made online shopping available in Germany at tkmaxx.de and in Austria at tkmaxx.at.
Reworded paragraphs (34)
Previous wording
We are the leading off-price apparel and home fashions retailer in the U.S. and worldwide. Our mission is to deliver great value to our customers every day. We do this by selling a rapidly changing assortment of apparel, home fashions and other merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty and major online retailers) regular prices on comparable merchandise, every day through our storesand six e-commerce sites. We operate over 4,900 stores through our four main segments: in the U.S., Marmaxx (which operates TJ Maxx, Marshalls, tjmaxx.com and marshalls.com) and HomeGoods (which operates HomeGoods and Homesense); TJX Canada (which operates Winners, HomeSense and Marshalls in Canada); and TJX International (which operates TK Maxx, Homesense, tkmaxx.com, tkmaxx.de, and tkmaxx.at in Europe, and TK Maxx in Australia). In addition to our four main segments, Sierra operates retail stores and sierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
Current wording
We are the leading off-price apparel and home fashions retailer in the U.S. and worldwide. Our mission is to deliver great value to our customers every day. We do this by selling a rapidly changing assortment of apparel, home fashions and other merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty and major online retailers) regular prices on comparable merchandise, every day through our storesand six e-commerce sites. We operate over 5,000 stores through our four main segments: in the U.S., Marmaxx (which operates TJ Maxx, Marshalls, tjmaxx.com and marshalls.com) and HomeGoods (which operates HomeGoods and Homesense); TJX Canada (which operates Winners, HomeSense and Marshalls in Canada); and TJX International (which operates TK Maxx, Homesense, tkmaxx.com, tkmaxx.de, and tkmaxx.at in Europe, and TK Maxx in Australia). In addition to our four main segments, Sierra operates retail stores and sierra.com in the U.S. The results of Sierra are included in the Marmaxx segment.
Previous wording
–Net sales increased 6% to $12.5 billion for the first quarter of fiscal 2025 versus last year’s first quarter sales of $11.8 billion. As of May 4, 2024, both the number of stores in operation and the selling square footage increased 2% compared to the end of the first quarter of fiscal 2024.
Current wording
–Net sales increased 6% to $13.5 billion for the second quarter of fiscal 2025 versus last year’s second quarter sales of $12.8 billion. As of August 3, 2024, both the number of stores in operation and the selling square footage increased 2% compared to the end of the second quarter of fiscal 2024.
Previous wording
–Consolidated comp store sales increased 3% for the first quarter of fiscal 2025. See Net Sales below for our definition of comp store sales.
Current wording
–Consolidated comp store sales increased 4% for the second quarter of fiscal 2025. See Net Sales below for our definition of comp store sales.
Previous wording
–Pre-tax profit margin (the ratio of pre-tax income to net sales) for the first quarter of fiscal 2025 was 11.1%, a 0.8 percentage point increase compared with 10.3% in the first quarter of fiscal 2024.
Current wording
–Pre-tax profit margin (the ratio of pre-tax income to net sales) for the second quarter of fiscal 2025 was 10.9%, a 0.5 percentage point increase compared with 10.4% in the second quarter of fiscal 2024.
Previous wording
–Our cost of sales, including buying and occupancy costs, ratio for the first quarter of fiscal 2025 was 70.0%, a 1.1 percentage point decrease compared with 71.1% in the first quarter of fiscal 2024.
Current wording
–Our cost of sales, including buying and occupancy costs, ratio for the second quarter of fiscal 2025 was 69.6%, a 0.2 percentage point decrease compared with 69.8% in the second quarter of fiscal 2024.
Previous wording
–Our selling, general and administrative (“SG&A”) expense ratio for the first quarter of fiscal 2025 was 19.2%, a 0.2 percentage point increase compared with 19.0% in the first quarter of fiscal 2024.
Current wording
–Our selling, general and administrative (“SG&A”) expense ratio for the second quarter of fiscal 2025 was 19.8%, a 0.3 percentage point decrease compared with 20.1% in the second quarter of fiscal 2024.
Previous wording
–Our consolidated average per store inventories, including inventory on hand at our distribution centers (which excludes inventory in transit) and excluding our e-commerce sites and Sierra stores, were down 5% on both a reported basis and constant currency basis (as defined below) at the end of the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024.
Current wording
–Our consolidated average per store inventories, including inventory on hand at our distribution centers (which excludes inventory in transit) and excluding our e-commerce sites and Sierra stores, were down 2% at the end of the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024.
Previous wording
–During the first quarter of fiscal 2025, we returned $886 million to our shareholders through share repurchases and dividends.
Current wording
–During the second quarter of fiscal 2025, we returned $982 million to our shareholders through share repurchases and dividends.
Previous wording
Net sales for the quarter ended May 4, 2024 totaled $12.5 billion, a 6% increase versus first quarter fiscal 2024 net sales of $11.8 billion. This increase reflects a 3% increase in comp store sales and a 3% increase from non-comp store sales. Net sales from our e-commerce sites combined amounted to less than 2% of total sales for each of the first quarters of fiscal 2025 and fiscal 2024.
Current wording
Net sales for the quarter ended August 3, 2024 totaled $13.5 billion, a 6% increase versus second quarter fiscal 2024 net sales of $12.8 billion. This increase reflects a 4% increase in comp store sales, a 2% increase from non-comp store sales and a neutral foreign currency exchange rate impact. Net sales from our e-commerce sites combined amounted to less than 2% of total sales for each of the second quarters of fiscal 2025 and fiscal 2024.
Previous wording
Comp store sales increased 3% for both the first quarter of fiscal 2025 and the first quarter of fiscal 2024. Home comp store sales (as defined below) growth outperformed apparel comp store sales (as defined below) growth for the first quarter of fiscal 2025.
Current wording
Comp store sales increased 4% for the second quarter of fiscal 2025 and increased 6% for the second quarter of fiscal 2024. Comp store sales increased 3% for the first six months of fiscal 2025 and increased 4% for the first six months of fiscal 2024. Both home and apparel comp store sales (as defined below) growth performed in line with the consolidated comp store sales increase for both the second quarter and the first six months of fiscal 2025. Comp store sales for both periods were driven by an increase in customer transactions.
Previous wording
As of May 4, 2024, both our store count and selling square footage increased 2% compared to the end of the first quarter last year.
Current wording
As of August 3, 2024, both our store count and selling square footage increased 2% compared to the end of the second quarter last year.
Previous wording
The decrease in the cost of sales ratio, including buying and occupancy costs, for the first quarter of fiscal 2025 was attributable to higher merchandise margin due to lower freight costs and higher markon. This was partially offset by capitalized inventory costs as a result of a greater portion of our buying and distribution costs being expensed in the first quarter of fiscal 2025 as compared to last year.
Current wording
Cost of sales, including buying and occupancy costs, as a percentage of net sales was 69.8% for the first six months of fiscal 2025, a decrease of 0.6 percentage points compared to 70.4% for the first six months of fiscal 2024. The decrease in the cost of sales ratio, including buying and occupancy costs, for the first six months of fiscal 2025 was attributable to higher merchandise margin due to higher markon and lower freight costs, partially offset by higher supply chain costs.
Previous wording
The increase in the SG&A ratio for the first quarter of fiscal 2025 was attributable to incremental store wage and payroll costs.
Current wording
SG&A expenses, as a percentage of net sales, was 19.8% for the second quarter of fiscal 2025, a decrease of 0.3 percentage points compared to 20.1% for the second quarter of fiscal 2024. The decrease in the SG&A ratio for the second quarter of fiscal 2025 was due to a favorable year-over-year impact from a prior year reserve related to a German COVID program receivable, partially offset by incremental store wage.
Previous wording
Interest (income) expense, net increased for the first quarter of fiscal 2025 compared to the same period in fiscal 2024, primarily due to an increase in interest income driven by an increase in prevailing rates.
Current wording
2024 compared to the same periods in fiscal 2024, primarily due to an increase in interest income driven by an increase in prevailing rates and a higher average cash balance.
Previous wording
In 2021, the Organization for Economic Co-operation and Development announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15%. Subsequently, multiple sets of administrative guidance have been issued. Many non-US tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 with the adoption of additional components in later years or announced their plans to enact legislation in future years. These rules did not have a material impact on our financial statements for the first quarter of fiscal 2025 and are not expected to materially increase our global tax costs on our fiscal 2025 financial statements. There remains uncertainty as to the final Pillar Two model rules. We are continuing to evaluate the impacts of enacted legislation and pending legislation to enact Pillar Two Model Rules in the non-US tax jurisdictions we operate in.
Current wording
In 2021, the Organization for Economic Co-operation and Development announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15%. Subsequently, multiple sets of administrative guidance have been issued. Many non-US tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 with the adoption of additional components in later years or announced their plans to enact legislation in future years. These rules did not have a material impact on our financial statements for the second quarter of fiscal 2025 and are not expected to materially increase our global tax costs on our fiscal 2025 financial statements. There remains uncertainty as to the final Pillar Two model rules. We are continuing to evaluate the impacts of enacted legislation and pending legislation to enact Pillar Two Model Rules in the non-US tax jurisdictions we operate in.
Previous wording
The effective income tax rate was 23.0% for the first quarter of fiscal 2025 and 26.2% for the first quarter of fiscal 2024. This decrease in the effective income tax rate in the first quarter of fiscal 2025 was primarily due to the resolution of various tax matters and the increase in excess tax benefit from share-based compensation.
Current wording
The effective income tax rate was 25.1% for the second quarter of fiscal 2025 and 25.5% for the second quarter of fiscal 2024. The effective income tax rate was 24.1% for the first six months of fiscal 2025 and 25.8% for the first six months of fiscal 2024.This decrease in the effective income tax rate for both the second quarter and first six months of fiscal 2025 was primarily due to the increase in excess tax benefit from share-based compensation and the resolution of various tax matters.
Previous wording
Net income was $1.1 billion, or $0.93 per diluted share, and $891 million, or $0.76 per diluted share, for the first quarter of fiscal 2025 and fiscal 2024, respectively. Foreign currency had a $0.01 positive impact on diluted earnings per share for the first quarter of fiscal 2025 and a neutral impact on diluted earnings per share for the first quarter of fiscal 2024.
Current wording
Foreign currency had a neutral impact on diluted earnings per share for both the second quarter and the first six months of fiscal 2025. Foreign currency had a $0.01 negative impact on diluted earnings per share for both the second quarter and the first six month of fiscal 2024.
Previous wording
Net sales for Marmaxx were $7.8 billion for the first quarter of fiscal 2025, an increase of 5% compared to $7.4 billion for the first quarter of fiscal 2024. This increase in the first quarter reflects a 3% increase from non-comp store sales and a 2% increase from comp store sales. For the first quarter of fiscal 2025, the increase in comp store sales was driven by an increase in customer transactions. In addition, Marmaxx home comp store sales growth outperformed apparel comp store sales growth. Geographically, comp store sales growth was strongest in the Midwest and West regions for the first quarter of fiscal 2025.
Current wording
For both the second quarter and first six months of fiscal 2025, the increase in comp store sales was driven by an increase in customer transactions. In addition, Marmaxx home comp store sales growth outperformed apparel comp store sales growth. Geographically, comp store sales growth was strongest in the West region for the second quarter and in the West and Midwest regions for the first six months of fiscal 2025.
Previous wording
Our Marmaxx e-commerce sites, tjmaxx.com and marshalls.com, together with sierra.com, represented less than 3% of Marmaxx’s net sales for the first quarter of fiscal 2025 and fiscal 2024, and did not have a significant impact on year-over-year segment margin comparisons.
Current wording
Our Marmaxx e-commerce sites, tjmaxx.com and marshalls.com, together with sierra.com, represented less than 3% of Marmaxx’s net sales for both the second quarter and first six months of fiscal 2025 and fiscal 2024, and did not have a significant impact on year-over-year segment margin comparisons.
Previous wording
Net sales for HomeGoods were $2.1 billion for the first quarter of fiscal 2025, an increase of 6%, compared to $2 billion for the first quarter of fiscal 2024. This increase in the first quarter reflects a 4% increase from comp store sales and a 2% increase from non-comp store sales. The increase in comp store sales for the first quarter was driven by an increase in customer transactions, partially offset by a decrease in average basket. For the first quarter of fiscal 2025, all geographies generally performed in line with the overall comp store sales increase.
Current wording
Net sales for HomeGoods were $2.1 billion for the second quarter of fiscal 2025, an increase of 4%, compared to $2 billion for the second quarter of fiscal 2024. This increase in the second quarter reflects a 2% increase from comp store sales and a 2% increase from non-comp store sales.
Previous wording
Segment profit margin increased to 14.2% for the first quarter of fiscal 2025 compared to 14.0% for the same period last year. The increase in segment profit margin for the first quarter of fiscal 2025 was primarily driven by higher merchandise margin which reflects lower freight costs and higher markon. This was partially offset by capitalized inventory costs, incremental store wage and payroll costs and investments in supply chain. Capitalized inventory costs reflect a greater portion of our buying and distribution costs being expensed in the first quarter of fiscal 2025 as compared to last year.
Current wording
Segment profit margin increased to 9.3% for the first six months of fiscal 2025 compared to 8.0% for the same period last year. This increase in segment profit margin for the first six months of fiscal 2025 was primarily driven by higher merchandise margin which reflects lower freight costs and higher markon. This was partially offset by incremental store wage and payroll costs and higher supply chain costs.
Previous wording
Net sales for TJX Canada were $1.1 billion for the first quarter of fiscal 2025, an increase of 7%, compared to $1 billion for the first quarter of fiscal 2024. This increase in the first quarter reflects a 4% increase in comp store sales, a 4% increase in non-comp store sales, partially offset by a negative foreign currency exchange rate impact of 1%. The increase in comp store sales for the first quarter of fiscal 2025 was driven by an increase in customer transactions.
Current wording
Net sales for TJX Canada were $1.2 billion for the second quarter of fiscal 2025, an increase of 2%, compared to $1.2 billion for the second quarter of fiscal 2024. This increase in the second quarter reflects a 2% increase in comp store sales, a 2% increase in non-comp store sales, partially offset by a negative foreign currency exchange rate impact of 2%.
Previous wording
Segment profit margin increased to 12.3% for the first quarter of fiscal 2025 compared to 11.3% for the same period last year. This increase for the first quarter of fiscal 2025 was primarily driven by higher merchandise margin and favorable supply chain costs, partially offset by incremental store wage and payroll costs. Merchandise margin reflects lower freight costs, lower markdowns, and higher markon.
Current wording
Segment profit margin was 13.7% for the first six months of fiscal 2025, flat compared to the same period last year. Segment profit margin was flat for the first six months of fiscal 2025 due to higher merchandise margin, offset by incremental store wage and payroll costs. Merchandise margin reflects lower freight costs, lower markdowns, and higher markon.
Previous wording
Net sales for TJX International were $1.5 billion for the first quarter of fiscal 2025, an increase of 9%, compared to $1.4 billion for the first quarter of fiscal 2024. This increase in the first quarter reflects a 5% increase in non-comp store sales, a 2% increase in comp store sales and a positive foreign currency exchange rate impact of 2%. The increase in comp store sales for the first quarter was driven by an increase in customer transactions.
Current wording
Net sales for TJX International were $1.7 billion for the second quarter of fiscal 2025, an increase of 4%, compared to $1.6 billion for the second quarter of fiscal 2024. This increase in the second quarter reflects a 2% increase in non-comp store sales, a 1% increase in comp store sales and a positive foreign currency exchange rate impact of 1%.
Previous wording
Segment profit margin increased to 4.0% for the first quarter of fiscal 2025 compared to 2.7% for the same period last year. This increase for the first quarter of fiscal 2025 was due to higher merchandise margin, partially offset by the unfavorable impact of transactional foreign exchange. Merchandise margin reflects higher markon, lower freight costs, and lower markdowns.
Current wording
This increase for both the second quarter and first six months of fiscal 2025 was due to a favorable year-over-year impact from a prior year reserve related to a German COVID program receivable and higher merchandise margin, partially offset by the unfavorable impact of transactional foreign exchange and incremental store wage. Merchandise margin reflects higher markon and lower freight costs.
Previous wording
The decrease in general corporate expense for thefirst quarter of fiscal 2025 was primarily driven by favorable mark-to-market adjustments on fuel hedges, partially offset by higher other administrative costs.
Current wording
The increase in general corporate expense for the second quarter of fiscal 2025 was primarily driven by unfavorable mark-to-market adjustments on fuel hedges and higher other administrative costs, partially offset by favorable mark-to-market adjustments on inventory hedges.
Previous wording
As of May 4, 2024, we held $5.1 billion in cash. Approximately $1.3 billion of our cash was held by our foreign subsidiaries with $722 million held in countries where we intend to indefinitely reinvest any undistributed earnings. We have provided for all applicable state and foreign withholding taxes on all undistributed earnings of our foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through May 4, 2024. If we repatriate cash from such subsidiaries, we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid.
Current wording
As of August 3, 2024, we held $5.3 billion in cash. Approximately $1.5 billion of our cash was held by our foreign subsidiaries with $877 million held in countries where we intend to indefinitely reinvest any undistributed earnings. We have provided for all applicable state and foreign withholding taxes on all undistributed earnings of our foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through August 3, 2024. If we repatriate cash from such subsidiaries, we should not incur additional tax expense and our cash would be reduced by the amount of withholding taxes paid.
Previous wording
Operating activities resulted in net cash inflows of $737 million for the three months ended May 4, 2024 and net cash inflows of $745 million for the three months ended April 29, 2023.
Current wording
Operating activities resulted in net cash inflows of $2.4 billion for the six months ended August 3, 2024 and net cash inflows of $2.1 billion for the six months ended July 29, 2023.
Previous wording
Operating cash flows decreased $8 million compared to fiscal 2024 primarily due to a $264 million decrease in accrued expenses, the largest component of which was higher incentive compensation costs. This was partially offset by a $179 million increase in net income and a $70 million change in merchandise inventories net of accounts payable.
Current wording
Operating cash flows increased $280 million compared to fiscal 2024 primarily due to a $289 million increase in net income and $251 million change in merchandise inventories net of accounts payable. This was partially offset by a $218 million decrease in accrued expenses due to incentive compensation costs.
Previous wording
Investing activities resulted in net cash outflows of $427 million for the three months ended May 4, 2024 and $362 million for the three months ended April 29, 2023. The cash outflows for both periods were driven by capital expenditures.
Current wording
Investing activities resulted in net cash outflows of $990 million for the six months ended August 3, 2024 and $819 million for the six months ended July 29, 2023. The cash outflows for both periods were driven by capital expenditures.
Previous wording
Investing activities in the first three months of fiscal 2025 primarily reflected property additions for store improvements and renovations, investments in our new stores, as well as investments in our distribution centers and offices, including information technology. We anticipate that capital spending for the full fiscal year 2025 will be approximately $2.0 billion to $2.1 billion. We plan to fund these expenditures with our existing cash balances and through internally generated funds.
Current wording
Investing activities in the first six months of fiscal 2025 primarily reflected property additions for store improvements and renovations, investments in our new stores, as well as investments in our distribution centers and offices, including information technology. We anticipate that capital spending for the full fiscal year 2025 will be approximately $2.0 billion to $2.1 billion.
Previous wording
Financing activities resulted in net cash outflows of $840 million for the first three months of fiscal 2025 and net cash outflows of $837 million for the first three months of fiscal 2024. The cash outflows for both periods were primarily driven by equity repurchases and dividend payments.
Current wording
Financing activities resulted in net cash outflows of $1.7 billion for the first six months of fiscal 2025 and net cash outflows of $2.2 billion for the first six months of fiscal 2024. The cash outflows for both periods were primarily driven by equity repurchases and dividend payments.
Previous wording
Under our stock repurchase programs, we paid $509 million to repurchase and retire 5.3 million shares of our stock in the first three months of fiscal 2025. As of May 4, 2024, approximately $3.0 billion remained available under our existing stock repurchase programs. We paid $500 million to repurchase and retire 6.4 million shares of our stock in the first three months of fiscal 2024. We currently plan to repurchase approximately $2 billion to $2.5 billion of stock under our stock repurchase programs in fiscal 2025. For further information regarding equity repurchases, see Note D – Capital Stock and Earnings Per Share of Notes to Consolidated Financial Statements.
Current wording
Under our stock repurchase programs, we paid $1.1 billion to repurchase and retire 10.4 million shares of our stock in the first six months of fiscal 2025. During the second quarter of fiscal 2025, we completed stock repurchases representing all of the $1 billion that remained as of February 3, 2024 from the previously announced stock repurchase program. As of August 3, 2024, approximately $2.5 billion remained available under our existing stock repurchase program. We paid $1 billion to repurchase and retire 13.1 million shares of our stock in the first six months of fiscal 2024. We currently plan to repurchase approximately $2 billion to $2.5 billion of stock under our stock repurchase programs in fiscal 2025. For further information regarding equity repurchases, see Note D – Capital Stock and Earnings Per Share of Notes to Consolidated Financial Statements.
Previous wording
We declared quarterly dividends on our common stock of $0.375 per share for the first quarter in fiscal 2025 and $0.3325 per share for the first quarter in fiscal 2024. Cash payments for dividends on our common stock totaled $380 million for the first three months of fiscal 2025 and $343 million for the first three months of fiscal 2024.
Current wording
We declared quarterly dividends on our common stock of $0.375 per share for each of the quarters in the first six months of fiscal 2025 and $0.3325 per share for each of the quarters in the first six months of fiscal 2024. Cash payments for dividends on our common stock totaled $803 million for the first six months of fiscal 2025 and $725 million for the first six months of fiscal 2024.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Net sales for the six months ended August 3, 2024 totaled $25.9 billion, a 6% increase versus net sales of $24.5 billion for the first six months fiscal 2024. This increase reflects a 3% increase in comp store sales, a 3% increase from non-comp store sales and a neutral foreign currency exchange rate impact. Net sales from our e-commerce sites combined amounted to less than 2% of total sales for each of the first six months of fiscal 2025 and fiscal 2024.
Current report — wording carried from elsewhere
The increase in comp store sales for both the second quarter and first six months was driven by an increase in customer transactions, partially offset by a decrease in average basket.
Current report — wording carried from elsewhere
The increase in general corporate expense for the first six months of fiscal 2025 was primarily driven by higher other administrative costs.
Current report — wording carried from elsewhere
We plan to fund these expenditures and investments with our existing cash balances and through internally generated funds.