TJX’s performance is gratifying, and household products play a major role

TJX delivered a stellar performance in the first quarter of its fiscal year that ended on May 4, in which the home furnishing category surpassed its core apparel business and performed particularly well. The performance boosted overall revenue and prompted the company to raise its forecast for annual pre-tax margins and earnings per share.

During this quarter, all divisions of TJX Company achieved revenue growth, especially the home furnishing division, whose sales and profitability far exceeded expectations. Data shows that as of May 4, HomwGoods' net sales have successfully exceeded the US$2 billion mark, and same-store sales have achieved a 4% growth, compared with a 7% decrease in the same period last year. This successful reversal is undoubtedly eye-catching. .

In terms of specific performance, Marmaxx U.S. net sales reached US$7.75 billion, a year-on-year increase of 5%, and comparable same-store sales also increased by 2%. HomeGoods U.S. net sales, including Home Sense statistics, reached $2.079 billion, a year-on-year increase of 6%. In the Canadian market, TJX Canada continues to demonstrate solid growth. Its net sales in the first quarter were US$1.113 billion, a year-on-year increase of 7%, and comparable same-store sales increased by 1%, proving the stability and continued growth potential of this division in the Canadian market. In the international market, TJX International continued to expand its influence, with first-quarter net sales of US$1.537 billion, a year-on-year increase of 9%.

TJX CEO and President Ernie Herrman said the company is actively expanding into categories with greater demand and seizing market opportunities. He particularly emphasized that two brands, HomeGoods and Home Sense, are increasing their purchases to attract more repeat customers.

"Despite the weakness in other furniture businesses, we were able to successfully find room for demand," Herrman explained. This shows TJX's flexibility and adaptability in market competition.

It’s worth mentioning that TJX continues to attract new Generation Z and Millennial shoppers. This quarter, the company successfully attracted consumers of different household income levels through precise advertising strategies, further broadening its customer base.

“It’s wonderful to see generations of people shopping together in our stores,” Herrman exclaimed. This reflects TJX's success in meeting the needs of consumers of different age groups.

Based on the excellent performance in the first quarter, TJX raised its performance forecast for the entire fiscal year. Pre-tax margins are expected to reach 11.0% to 11.1%, while diluted earnings per share expectations are also raised to $4.03 to $4.09. At the same time, the company also plans to increase its consolidated sales forecast for comparable stores by 2% to 3%.

With the overall recovery of the U.S. home furnishings market, we have reason to expect that TJX will continue to maintain its flexible market strategy and achieve even better performance.