TJX Says Customer Traffic Drove 6% Sales Growth in Q2

TJX, the parent company of popular off-price retailers like T.J.Maxx and Marshalls, recorded 6% overall comparable sales growth in the quarter ending on July 29.

The company’s diverse product mix and increased customer traffic were key factors contributing to this growth, TJX CEO Ernie Herrman said Wednesday (Aug. 16) during the company’s quarterly earnings call. He emphasized that the mix of branded fashionable merchandise and great values resonated with shoppers, leading to increased sales.

“For us, value also means delivering desirable brands, fashionable merchandise and great quality to our shoppers,” Herrman said. “We believe our value proposition is one of the best in all of retail, and will continue to attract consumers to our retail banners all around the world.”

Moreover, TJX’s financial performance saw significant improvements compared to the previous year, the company reported. Both the pretax profit margin and earnings per share increased significantly, showcasing the company’s strong operational performance.

TJX Chief Financial Officer John Klinger reported that the company’s net sales grew to $12.8 billion, an 8% increase compared to the second quarter of the previous fiscal year. The company’s pretax margin also experienced a notable increase of 120 basis points. This growth was driven by lower freight costs and expense leverage, Klinger said.

While TJX experienced overall sales growth, specific divisions within the company also performed exceptionally well, Herrman said. Marmaxx, which includes T.J.Maxx and Marshalls, saw an 8% increase in comparable store sales. This growth can be attributed to the strong customer traffic that these stores attracted. HomeGoods, another division of TJX, also showed a positive trend with a 4% increase in comparable store sales.

Looking ahead, TJX plans to continue offering a diverse mix of brands and merchandise to attract value-conscious shoppers. The company has strong marketing campaigns planned to reinforce its value leadership position. TJX expects full-year comparable sales growth to be in the range of 3% to 4%, demonstrating its confidence in its future performance.

“The marketplace is loaded with outstanding buying opportunities, and we are confident that we will continue to offer a terrific mix of brands and an outstanding assortment of gifts to our shoppers during the fall and holiday shopping seasons,” Herrman said during the call.