TJX Shrinks and Makes More Money at the Same Time — Market Mad House

The TJX Companies (NYSE: TJX) exposes the confusion in brick and mortar retail. To explain, TJX is making more money as its revenue growth shrinks.

In particular, TJX’s revenue growth rate fell by -6.08% in the quarter ending on 2 November 2019. Notably, that was the second quarter of falling revenue growth at TJX; TJX’s revenue growth rate fell by -0.45% in the previous quarter.

However, TJX’s quarterly revenues grew from $9.781 billion on 3 August 2019 to $10.451 billion on 2 November 2019. In addition, TJX’s quarterly operating income grew from $1.024 billion on 3 August 2019 to $1.25 billion on 2 November 2019.

Plus, TJX’s quarterly net income grew from $785.26 million on 3 August 2019 to $828.26 million three months later. Finally, TJX’s quarterly gross profit grew from $2.756 billion in August 2019 to $3.011 billion in November 2019. Therefore, TJX is making more money as its growth rate collapses.

How much Cash is TJX Generating?

Meanwhile, TJX’s operating cash flow grew from $750 million on 3 August 2019 to $974.28 million three months later. In addition, TJX’s free cash flow grew from $488.9 million to $559.59 million in the same period.