TJX Companies (NYSE: TJX) reported its third-quarter results in November, demonstrating the effectiveness of its off-price retail model. TJX isn't just benefiting from higher-income customers trading down; both transaction volumes and basket sizes increased. That means more customers bought more expensive items, driving comparable-store sales growth of 5%, crushing analyst estimates of 3.7%.
What stands out here is the breadth. Positive comps were recorded at all concepts, including TJ Maxx, Marshalls, HomeGoods, and its international operations. This helped push pretax profit margins higher, to an impressive 12.7%, up 40 basis points from the prior year, despite the company continuing to make investments. By any measure, TJX is firing on all cylinders.
Image source: TJX company presentation.
Sign in to read the full article.
Sign in with Google