Stock Analysis on Net
Stock Analysis on Net

TJX Cos. Inc. (NYSE:TJX)

Common-Size Income Statement 

TJX Cos. Inc., common-size consolidated income statement

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12 months ended: Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales, including buying and occupancy costs -69.40 -70.00 -72.39 -71.50 -76.34 -71.54
Gross earnings 30.60% 30.00% 27.61% 28.50% 23.66% 28.46%
Selling, general and administrative expenses -19.42 -19.31 -17.88 -18.70 -21.85 -17.87
Operating income 11.18% 10.69% 9.73% 9.79% 1.81% 10.59%
Impairment on equity investment 0.00 0.00 -0.44 0.00 0.00 0.00
Loss on early extinguishment of debt 0.00 0.00 0.00 -0.50 -0.97 0.00
Interest expense, excluding capitalized interest -0.13 -0.15 -0.17 -0.25 -0.60 -0.14
Interest income 0.46 0.46 0.16 0.01 0.04 0.12
Interest income (expense), net 0.32% 0.31% -0.01% -0.24% -0.56% -0.02%
Income before income taxes 11.50% 11.01% 9.28% 9.06% 0.28% 10.56%
(Provision) benefit for income taxes -2.87 -2.75 -2.28 -2.30 0.00 -2.72
Net income 8.63% 8.25% 7.00% 6.76% 0.28% 7.84%

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

Cost of Sales, Including Buying and Occupancy Costs
The percentage relative to net sales exhibited a significant increase from -71.54% in 2020 to a peak of -76.34% in 2021, indicating higher cost incidence that year. Subsequently, this ratio decreased, stabilizing around -70% by 2024 and improving slightly to -69.4% in 2025, suggesting improved cost management or favorable pricing conditions over the longer term.
Gross Earnings
Gross earnings showed an inverse trend to the cost of sales, dropping sharply to 23.66% of net sales in 2021, before rebounding to 28.5% in 2022 and maintaining levels near 30% in both 2024 and 2025. This recovery signals strengthened gross profitability aligned with the cost containment observed after 2021.
Selling, General, and Administrative Expenses (SG&A)
SG&A expenses as a percentage of net sales increased markedly in 2021 to -21.85%, a notable rise from -17.87% in 2020. Following this peak, these expenses decreased in 2022 and 2023, remaining close to -19.3% in the most recent years. Despite improvement, SG&A costs remain elevated compared to the initial period.
Operating Income
Operating income suffered a steep decline to 1.81% in 2021 from 10.59% in 2020, reflecting the impact of increased costs and expenses. However, operating margins recovered strongly in subsequent years, climbing to 11.18% in 2025, exceeding initial levels. This indicates effective operational adjustments and cost control efforts after the 2021 downturn.
Non-Recurring Items
Impairment on equity investment appeared as a small negative impact in 2023 (-0.44%), and losses from early debt extinguishment were incurred in 2021 (-0.97%) and 2022 (-0.5%), temporarily affecting profitability during those years. These one-time charges contributed to operating volatility.
Interest Expense and Income
Interest expense showed a modest fluctuation, peaking at -0.6% in 2021 but declining steadily to -0.13% by 2025, reflecting improved financing cost structure. Interest income was minimal initially but rose significantly in 2024 and 2025 to 0.46%, resulting in a positive net interest margin of approximately 0.3% in those years, which contributed moderately to income before taxes.
Income Before Income Taxes
The pre-tax income mirrored operating income trends, plunging sharply to 0.28% in 2021 from 10.56% in 2020, then progressively recovering to 11.5% in 2025, surpassing the initial figure. This recovery highlights the company’s capacity to restore profitability following a period of heightened costs and one-time charges.
Provision for Income Taxes
The tax provision as a percentage of net sales was zero in 2021, likely reflecting the low pre-tax income, but otherwise remained consistently negative around -2.3% to -2.87% in other years. This stable tax outflow aligns with the recovery and growth in pre-tax earnings.
Net Income
Net income as a percentage of net sales followed a similar pattern to operating and pre-tax income, dropping severely to 0.28% in 2021 from 7.84% in 2020, then gradually improving to 8.63% in 2025, surpassing the initial year’s level. This upward trajectory reflects overall improved cost control, operating efficiency, and financial management after the 2021 dip.