TJX Has Phenomenal Suppliers to Gain Market Share

The investor’s call was full of pride and joy as the management demonstrated their ability to find great clothes for their customers. Ernie Herrman, CEO and President of TJX informed their 1,100 buyers who are dealing with 21,000 suppliers to get the best values ​​on apparel and accessories for their stores.

Herrman mentioned the stores that are closing. They are leaving customers looking for new places to shop. TJX now offers fine merchandise in three categories – good, better and best. This is attracting many new customers to TJMaxx and Marshalls stores. Hermann used the word phenomenal several times.

The company reported a 5% increase in comparable US store sales in the 4th quarter. This was after comparable store sales in the 4th quarter last year rose 13%. HomeGoods sales were down 4% while Marmaxx stores were up 8%. During the pandemic period many shoppers improved their homes by buying new furniture. Now clothes are essential.

The company reported for fiscal 2023, ending January 28, 2023 sales of $49.9 billion compared to $48.6 billion the previous year. Net earnings were $3.5 billion compared to $3.3 billion a year earlier. Total diluted earnings per share were $2.97 compared to $2.70 last year.

Ernie Herrman said: “By focusing on our off-price fundamentals, which have served us well through many types of retail and macro environments, we have continued to bring exciting values ​​and a treasure-hunting shopping experience to customers around the world every day. Our eclectic, fast-changing mix of gift-giving variations is clearly resonating with our customers this holiday season. We saw 4% growth in US comp sales in the fourth quarter, well above our plan, and an increase in US customer traffic. Marmaxx delivered a very strong 7% comp increase. The highest quarterly comp this year, driven by excellent sales in the apparel and accessories categories.~

Herrman continued: “For the full year, total sales were close to $50 billion, US company sales were flat and overall profitability improved. During the year our apparel business, including accessories, was strong across the company. Overall our home business sales were softer as we saw extraordinary growth over the previous two years as consumers focused on home purchases. At our international divisions, we saw overall sales increases and improved profitability for the year. Fiscal 2024 is off to a strong start and we remain confident of improving our profitability this year and achieving our target profit margin of 10.6% by fiscal 2025. changing great fashion choices and brands at great values. In the long term, I am confident that we are on track to become a more profitable $60 billion business.

POSTSCRIPT: There is no doubt that TJX Companies will continue to grow and become important as moe shoppers go on a treasure hunt and find clothing they like. at TJX stores in the US, Canada and Europe and Australia.