What drove TJX's earnings growth in Q3 2025?

TJX's earnings growth in Q3 2025 was primarily driven by a 6% year-over-year increase in net sales, which reached $14.1 billion, and a 3% rise in comparable store sales. Additionally, the company's EPS grew by 11% to $1.14, and the pretax profit margin improved to 12.3%. 1. **Revenue Growth**: The increase in net sales was a significant contributor to the earnings growth. TJX's global expansion, including the addition of 56 stores during Q3 FY25, reaching a total of 5,057 stores, has likely played a role in driving sales growth. 2. **Comparable Store Sales Growth**: The 3% increase in comparable store sales indicates that existing stores are also experiencing growth, which is a positive indicator for earnings. This growth could be attributed to effective marketing strategies, customer loyalty, and a strong product offering. 3. **Profit Margin Improvement**: The improvement in pretax profit margin to 12.3% suggests that TJX is managing its costs effectively, which has contributed to the earnings growth. This could be due to better inventory management, reduced expenses, or increased operational efficiency. 4. **Dividend and Share Buybacks**: TJX returned value to shareholders through dividends and share buybacks, with a 13% year-over-year increase in dividends per share. While not a direct driver of earnings growth, these actions can enhance shareholder value and contribute to a positive perception of the company. In summary, TJX's earnings growth in Q3 2025 was driven by a combination of revenue growth, improved profit margins, and effective shareholder return strategies.