Retailers wondering where their market share went would do well to look to The TJX Cos. Inc.
The off-pricer, which continued to roll on in the second quarter with a double-digit earnings increase, said it is on track to log more than $25 billion in sales this year. The corporate parent of TJ Maxx and Marshalls is gunning to eventually hit $40 billion, which is the equivalent of adding Gap Inc.’s total sales to its current business.
“All of our businesses in the U.S., Canada and Europe are on track and delivering excellent results,” said Carol Meyrowitz, chief executive officer, on a conference call detailing second-quarter results. “Customer traffic was up significantly over increases last year, which we believe speaks to the strength of our brand, fashion and value…. The numbers speak for themselves.”
Net earnings rose 20.9 percent to $421.1 million, or 56 cents a diluted share, from $348.3 million, or 45 cents, a year earlier. Profits beat analysts’ earnings per share expectations by 1 cent. Sales for the three months ended July 28 rose 8.7 percent to $5.95 billion from $5.47 billion on a 7 percent comparable-store sales gain.
TJX boosted its annual profit projection by 1 cent to a range of $2.39 to $2.45. That projection was seen as conservative by analysts and is well ahead of last year’s earnings of $1.93.
“With our broad U.S. and international reach, we believe our demographic audience is the widest in retail,” said Meyrowitz, who highlighted the company’s offensive prowess.
“We are convinced we will continue to attract more U.S. and international customers with our value,” she said. “Our customer traffic is up midteens over the last three years and continues to increase. While we have made significant market share gains, enormous opportunities remain. Our customer reach indicates that our U.S. penetration is still well below [that of] most U.S. department stores.”
Meyrowitz also noted that TJX is scooping up more real estate, attracting younger customers and has a global span.
Marmaxx, the company’s largest division, has 1,896 doors under the TJ Maxx and Marshalls banners and is seen internally as able to add another 500 stores.
“Marmaxx has been very successful in moderate-income markets and in both densely populated urban markets and rural areas,” Meyrowitz said.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)