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HomeGoods A Star in TJX Q2

Net sales up 15.8 percent, same-store sales up 9 percent
Posted on August 18, 2015 by David Gill

TJXFRAMINGHAM, Mass.-HomeGoods proved a winner again for The TJX Cos. in its fiscal second quarter, recording a net sales gain of 15.8 percent, to $895 million, and same-store sales growth of 9 percent.

These results were part of TJX’s overall net sales increase of 6.5 percent in the quarter, which ended on Aug. 1. Net sales finished the quarter at $7.4 billion and included a companywide same-store sales increase of 6 percent. Net income rose 6.1 percent to $549.3 million.

Net sales at TJX’s Marmaxx group (T.J.Maxx and Marshalls) totaled $4.8 billion, up 6.9 percent. This included a same-store sales pickup of 4 percent.

“It was great to see that comp sales were entirely driven by customer traffic—our fifth consecutive quarter of sequential traffic improvement—and we had strong sales across all divisions,” said Carol Meyrowitz, TJX’s CEO. “We are proud of our strong comp sales, traffic increases and merchandise margins, all of which are core to a successful retail business.”

Gross margin finished the quarter at 29.1 percent, up 48 basis points from last year’s second quarter. Selling, general and administrative expenses rose 11.1 percent in dollars and 71 basis points as a percentage of sales, to 16.9 percent.

Meyrowitz also said the third quarter “is off to a solid start ... Today, we are a nearly $30 billion retailer with a clear vision for growth, a differentiated apparel and home fashions business, and a world-class organization.” She added that the company continues on course to eventually become a $40 billion-plus retailer.