TJX Cos. happy with home in Q3

While unseasonable weather did somewhat dampen apparel sales, the home business for TJX Cos. skated through the third quarter across the company’s various nameplates in North America.

HomeGoods was a quarterly highlight, posting a 15% jump in net sales to $851 million and a 7% comp gain.

“HomeGoods had an outstanding quarter,” noted Carol Meyrowitz, ceo, during the company’s earnings call this morning. “We are doing a lot of work on our supply chain to continue the growth at HomeGoods.”

She later added the brand’s “turns are insane, and it is a brand everyone loves…I think some day it will be online” but specific plans for the expansion into e-commerce were not shared.

At Marmaxx, the home category – along with jewelry and accessories – was “terrific” in the quarter. The brand posted a 4.2% increase in net sales to $4.67 billion and a 1% comp increase.

“We are very pleased with our comps and traffic in August and September, which were significantly better than in October when unseasonable weather damped demand for apparel,” she continued.

Looking to bridge its fledgling online business with its store presence, the company is expanding its TJMaxx marketing for the dot-com business with more in-store signage and online promotional efforts.

TJX Canada also made strides, with a 0.7% increase in net sales to $792 million and a 3% comp gain.

Meyrowitz said Marshalls “showed consistent performance in Canada.”

Total company results for the third quarter, ended Nov. 1, included a 6% increase in net sales to $7.4 billion, and consolidated comparable store sales increased 2%.

Net income fell 4.4% to $595 million. Diluted earnings per share dipped 1% to 85 cents compared with last year’s $.86 per share, which included a tax benefit of $.11. Excluding this benefit, diluted earnings per share increased 13% on an adjusted basis over last year’s adjusted $.75 per share.

For the first nine months, net sales rose 6% to $20.8 billion, and consolidated comparable store sales increased 2% on top of last year’s 3% increase.

For the first nine months, net sales were up 6% to $20.8 billion. Net income slipped 0.8% to $1.6 billion, and diluted earnings per share were $2.22.

Turning to the holiday season, TJX Cos. is “off to a very strong start,” Meyrowitz said. “We remain very confident in the short- and long-term growth prospects for our business as we grow TJX to a $40 billion-plus company.”

Source: Home Textiles Today