Home sweet home: Category outperforms at TJX during Q1

 

 

FRAMINGHAM, Mass. – Transactions drove comp increases at each of TJX Cos.’s divisions during the first quarter. Overall comp store sales increased 3%, at the high end of the company’s plan, and both profitability and earnings per share were well above expectations.

While the apparel and home segments each generated growth, the latter outperformed during the period, including at the Marmaxx division.

HomeGoods’ net sales climbed past the $2 billion mark during the period ended May 4. Same-store sales rose 4% compared with a 7% decline in the year-ago quarter. Segment profit margin grew significantly, up 9.5%.

TJX fintabs, 5-22-2024

Ernie Herrman, CEO and president of TJX Cos., credited the company’s ability to amplify categories that are in greater demand. In addition, the company’s U.S. nameplates have grabbed a bigger share of the giftable business. And both HomeGoods and Home Sense have been adding consumable items that drive repeat business, he said.

“The furniture business in the industry has been very soft elsewhere. We’re able to flex to where the action is more demanding,” he explained.

The company also continues to attract new Gen Z and Millennial shoppers. During the quarter, its U.S. banners also pulled in consumers with household incomes above and below $100,000. “It’s really great when we see multiple generations shopping our stores together,” said Herrman.

Having beat its quarterly profit estimates, TJX raised its outlook today.

For the full fiscal year, TJX Cos. increased its guidance for pretax profit margin to be in the range of 11.0% to 11.1% and increased its diluted earnings per share outlook to be in the range of $4.03 to $4.09.

The company continues to plan consolidated comparable store sales to be up 2% to 3%.

 

See also:

  • Home Sense, Costco & TJMaxx lead volume retailers in Q1 traffic gains
  • Happy campers: HomeGoods gives ‘finders’ a chance to vacation in style

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