Framingham, Mass. – TJX Cos. reported strong performance driven by increased transactions across its divisions in the first quarter.
Overall comparable store sales rose by 3%, at the upper end of the company’s expectations, with profitability and earnings per share significantly exceeding forecasts.
While both apparel and home segments showed growth, the home category particularly excelled, including at the Marmaxx division.
During the period ending May 4, HomeGoods surpassed $2 billion in net sales, with a 4% increase in comparable store sales compared to a 7% decline in the same quarter last year. The segment’s profit margin expanded notably by 9.5%.
Ernie Herrman, CEO and president of TJX Cos., attributed the company’s success to its ability to emphasize categories experiencing higher demand. He noted that TJX’s U.S. brands captured a larger share of the gift business market. Additionally, both HomeGoods and Home Sense have strategically expanded their offerings of consumable items, enhancing customer retention.
“In a challenging furniture market, we have adapted to meet the evolving demands,” Herrman explained.
The company continues to attract new generations of shoppers, including Gen Z and Millennials. During the quarter, TJX’s U.S. banners also drew in customers across varying household income levels, both above and below $100,000.
“It’s particularly rewarding to see multiple generations shopping together in our stores,” Herrman commented.
Following its strong quarterly performance, TJX revised its outlook upwards.
For the full fiscal year, TJX Cos. raised its guidance for pretax profit margin to between 11.0% and 11.1%, and increased its expected diluted earnings per share to the range of $4.03 to $4.09.
The company maintains its forecast for consolidated comparable store sales to grow by 2% to 3%.
