Home Goods passed a key sales milestone as The TJX Cos. posted a strong fourth quarter with solid comp and earnings gains that beat expectations.
TJX net income was $1.77 billion, or $1.58 per diluted share, versus $1.4 billion, or $1.23 per diluted share, in the year-earlier quarter. Adjusted for one-time events, diluted earnings per share were $1.43, up 16% from the prior-year quarter’s earnings result, according to the company.
Zacks Investment Research, in its consensus analyst estimate, forecast earnings per adjusted diluted share of $1.38 and revenues of $17.45 billion.
Comparable stores sales in the fourth quarter were up 5%, with Marmaxx, including the T.J. Maxx and Marshalls banners, up 5%, HomeGoods up 6%, TJX Canada up 7% and TJX International up 4%. Net sales were $17.74 billion versus $16.35 billion in the year-before quarter, the company reported.
In the full year, TJX net income was $5.49 billion, or $4.87 per diluted share, versus $4.86 billion, or $4.26 per diluted share, in the year earlier. Adjusted diluted earnings per share were $4.73, up 11% versus from the prior year’s earnings result. Net sales were $60.37 billion versus $56.36 billion, the company maintained.
TJX provided financial guidance for the year ahead including a comp gain of 2% to 3% and a diluted earnings per share advance in the range of $4.93 to $5.02.
John Klinger, TJX senior executive vice president and CFO, said in a conference call that fourth quarter sales benefited from a higher average basket and an increase in customer transactions. “Further, we saw strong comp sales increases in both our apparel and home categories, as we have all year long,” he said.
In the conference call, Ernie Herrman, TJX president and CEO pointed out that, for the first time, HomeGoods annual sales surpassed $10 billion during the full year past.
In announcing the financial results, Herrman said, “Thanks to the collective efforts and sharp execution of our teams, we delivered above-plan results on both the top- and bottom-line. Annual sales surpassed $60 billion, marking a major milestone for our company. Full-year comparable sales grew a very strong 5% and overall profitability and earnings per share both increased significantly. We are pleased with the strong and consistent sales performance across all of our businesses, with each division delivering comp sales growth of 4% or better for the year. We had an excellent fourth quarter, with sales, profitability and earnings per share all well above our plan. Throughout the year, we stayed focused on our off-price fundamentals to bring customers great values, brands and fashions as well as an exciting treasure-hunt shopping experience every day. As we begin 2026, the first quarter is off to a strong start and availability of quality merchandise continues to be outstanding.”
