Cut-price clothing retailer TJ Maxx’s owner today hailed double-digit growth in net sales and stronger growth in same-store sales than it’s experienced in two years.
TJX reported a 12 per cent year-on-year rise in net sales to $9.3bn (£7.2bn) for its second quarter results, eclipsing last year’s three per cent growth in revenue. Meanwhile same-store sales improved six per cent across the company’s four brands, Marmaxx, HomeGoods, TJX Canada and TJX International.
Pre-tax profits stood at 10.6 per cent, flat compared with the same period a year ago, which stood at 10.7 per cent. The company said it has ample liquidity to take advantage of any acquisition opportunities.
Why it’s important
TJX’s same-store sales surpassed analyst expectations with room to spare, according to Reuters, which reported that industry observers had forecast just a 2.2 per cent increase. That metric hasn’t risen above five per cent for the last two years for the retailer, with discounts attracting customers to its TJ Maxx and Marshalls stores.
What the CEO said
CEO Ernie Herrman said: “Customer traffic was once again the primary driver of our comp store sales increases at all of our divisions as we continue to reach a very wide customer demographic. We have been attracting new customers to all our divisions, a significant share of whom are younger customers. This is great for our business today and for the future.
“We were especially pleased with the robust performance of our apparel business. With our strong second quarter performance, we are raising our guidance for full-year earnings per share and comparable store sales growth. Looking forward, the third quarter is off to a very strong start and we have many exciting opportunities we are pursuing in the second half of the year.”
TJX’s stock rose almost five per cent to £1.06 on the back of the results.