TJX indicated comparable store sales climbed 6%, more than the company anticipated. It cited the apparel and accessories segment Marmaxx grew 8% in the second quarter, helped by a rebound in its HomeGoods outlets, where comparable sales rose by 4%, compared to the previous year where it was down following extraordinary growth during the pandemic.
CEO Ernie Hermann said overall apparel and accessories sales were “very strong,” and home sales significantly improved, returning to positive comparable sales growth.
Highlights from TJX Q2 results:
- Net sales for the second quarter of Fiscal 2024 were $12.8bn, an increase of 8% versus the second quarter of Fiscal 2023.
- EBIT rose to $1.3bn versus $1.1bn a year earlier.
- Net income for the second quarter of Fiscal 2024 was $989m up from $810m
GlobalData analyst, Neil Saunders shared that the good numbers from TJX show that not all retailers are in the “doldrums” and explains much of TJX’s success is down to the distinct value postion, he said: “Across the board in retail, we see a flight to value as shoppers look to make their budgets stretch further. Through its various banners, TJX is on the right side of these trends and is benefitting as a result.”
Saunders touches on how the wider apparel market was struggling throughout the quarter “especially in volume terms” and whilst many consumers wanted to refresh closets, for outings, travel and work TJMaxx and Marshalls helped them without breaking the bank.
He added: “From our data, both companies picked up an increased share of shoppers as more people visited the chains because of their strong value-for-money proposition.
“…TJX has made the most of the favourable buying environment as other retailers and brands look to offload excess stock.”
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Hermann added that the current quarter is off to a strong start, and the company is “seeing tremendous off-price buying opportunities in the marketplace,” putting it “in an outstanding position to continue shipping fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons.”
H1 2024 highlights:
- Net sales were $24.5bn, an increase of 6% versus the first half of Fiscal 2023.
- Net income for the first half of Fiscal 2024 was $1.88bn up from $1.37bn
TJX raised its full-year outlook for comparable store sales, pre-tax profit margin and earnings per share following the strong quarter.
The company anticipates a 3% to 4% increase in comparable store sales. For the 53-week fiscal year ending 3 February 2024, it foresees a pre-tax profit margin ranging from 10.7% to 10.8%, along with earnings per share falling between $3.66 and $3.72.