Investors will be looking for confirmation of continued like-for-like sales growth, progress in reducing inventories and raised guidance when discount apparel-to-home fashions seller TJX Companies (TJX:NYSE) delivers second quarter results (16 August). The consumer spending squeeze from high inflation should supporting market share gains.
Trading as T.J. Maxx, Marshalls and HomeGoods in the US and T.K. Maxx and HomeSense in Europe, the ‘off-price’ retailer has repeatedly proven its resilience in tougher economic times as cash-strapped consumers trade down and increased its 2024 earnings per share guidance alongside forecast-beating first quarter earnings (17 May).
These showed a 3% increase in first quarter like-for-like store sales, at the high end of company guidance and driven by an increase in customer traffic and a 5% like-for-like sales increase at Marmaxx, the group’s largest division which combines the T.J. Maxx, Marshalls and Sierra store chains.
CEO Ernie Herrman said the strength and flexibility of TJX’s off-price business model and wide demographic reach provide ‘great confidence in our ability to continue to succeed in today’s retail environment.
‘Every day, our global organisation is focused on bringing customers around the world excellent values on great fashions and great brands and an exciting, treasure-hunt shopping experience. We are pleased that the second quarter is off to a good start and we are seeing phenomenal off-price buying opportunities in the marketplace.’
US
Quarterly results
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