What drove TJX's earnings growth in 2025?

TJX's earnings growth in 2025 was driven by several key factors: 1. **Increase in Net Sales**: The company reported a 4% increase in net sales, reaching $56.4 billion. This growth was primarily fueled by a 4% rise in comparable store sales and a 2% boost from non-comparable store sales. 2. **Cost Control Efforts**: TJX managed to decrease the cost of sales, including buying and occupancy costs, as a percentage of net sales to 69.4% from 70.0%. This improvement in cost control contributed significantly to the enhanced profitability margins. 3. **Strategic Store Expansion**: The company operated over 5,000 stores worldwide, marking a 3% increase in store count and a 2% rise in selling square footage compared to the previous year. This strategic expansion into new markets, including the announcement of entering the Spanish market with its TK Maxx banner in fiscal 2027, has bolstered its revenue streams. 4. **Dividend and Share Repurchases**: TJX returned $4.1 billion to shareholders through share repurchases and dividends during the fiscal year, including a 13% increase in its quarterly dividend. Such shareholder returns reflect the company's confidence in its financial health and its commitment to creating value for investors. In summary, TJX's earnings growth in 2025 was driven by a combination of increased net sales, improved cost control, strategic store expansion, and effective shareholder return policies.