TJX Has Phenomenal Suppliers To Gain Share Of Market

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

Herrman pointed to stores that are closing. The are leaving customers in search of 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 4th quarter U.S. stores comparable store sales increase of 5%. This was after last year’s 4th quarter comparable store sales were up 13%. The HomeGoods sales were down 4% while Marmaxx stores were up 8%. During the pandemic period many shoppers improved their homes with the purchase of new furniture. Now apparel is key need.

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

Ernie Herrman said:” By staying focused on our off-price fundamentals, which have served us well though many kinds of retail and macro environments, we continued to bring customers around the world exciting values and a treasure-hunt shopping experience every day. Our eclectic, rapidly changing mix of gift giving assortments clearly resonates with our costumers this holiday season. We saw fourth quarter U.S comp sales grow of 4%, well above our plan, and U.S. customer traffic increase. 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 neared $50 billion, U.S. comp store sales were flat and overall profitability improved. During the year our apparel business, including accessories, across the company were strong. Sales of our home business overall were softer as we saw extraordinary growth during he two prior years when consumers focused on purchases for their homes. At our international divisions’, we saw total sales increases and improved profitability for the year. Fiscal 2024 is off to a strong start and we remain confident in improving oiur profitability this year and reaching our profit margin target of 10.6% by fiscal 2025. We are energized for the year ahead and our plans to keep bringing customers around the globe ever- changing selections of great fashion and brands at excellent values. Longer term, I am confident that we are on track to becoming an increasingly profitable $60 billion plus business.

POSTSCRIPT: There is no doubt that TJX Companies will continue to grow and become important as moe shoppers engage in the treasure hunt and find garments that pleases them.any shoppers ae trying to save money in these difficult times and often they find what they are looking for at TJX stores in the U.S., Canada and Europe and Australia.