TJX Q1 Net Rise 8 Percent; HomeGoods Makes Strong Gains
FRAMINGHAM, Mass.-The TJX Cos. registered an 8 percent gain in first-quarter net income, to $452.9 million, with the HomeGoods home specialty chain providing some of the drive.
Net sales for the corporation as a whole were up 6.8 percent to $6.2 billion, in the quarter which ended on May 4. This included a pickup of 2 percent in overall same-store sales. HomeGoods reported an increase of 15.8 percent in first-quarter net sales, including a same-store increase of 7 percent on top of last year's gain of 9 percent. The Marmaxx division (T.J. Maxx and Marshalls) had sales gains of 6.4 percent overall and 1 percent in same stores.
Gross margin for TJX was up 22 basis points to 28.4 percent. Selling, general and administrative expenses rose 8.1 percent in dollars and 21 basis points as a percentage of sales, to 16.5 percent.
TJX CEO Carol Meyrowitz said, "We believe the flexibility of our business model allowed us to achieve this (sales) growth despite the unfavorable weather patterns across most of our regions for much of the quarter. Flowing the right merchandise at the right time continued to be key to strong merchandise margins."
Meyrowitz also said the retail company's second fiscal quarter is off to a strong start as well. "Longer term," she said, "we remain very confident in our continued ability to grow sales and profitability, as we are well on the road to being a $40 billion-plus company."