That’s evident with The TJX Cos. Inc., which just had another blow-out quarter.
The parent company to T.J. Maxx and Marshalls released quarterly earnings Tuesday before the bell improving on both top and bottom lines and causing company shares to jump more than 2 percent during the trading session, closing 1.83 percent higher to $60.64 a piece.
For the three-month period ending Nov. 2, sales were $10.45 billion, up from $9.8 billion the same time last year. Profits also rose, to $828 million, compared with $762 million during 2019’s third quarter.
“We are extremely pleased with our strong performance in the third quarter as both sales and earnings per share exceeded our expectations,” Ernie Herrman, chief executive officer and president of TJX Cos., said in a statement. “We are especially pleased that Marmaxx, HomeGoods and TJX Canada each delivered a sequential increase in their comp store sales growth, and TJX International maintained its strong momentum driven by excellent performance in Europe.
“Looking ahead, the fourth quarter is off to a solid start and we have many initiatives under way to keep driving traffic and sales to our stores and online during the holiday season and beyond,” Herrman continued. “We are convinced our holiday marketing campaigns will position us as a top shopping destination for exciting gifts at amazing prices. We are seeing fantastic, widespread availability of quality, branded merchandise and are in a great position to capitalize on these opportunities. Longer term, we are confident that we can gain additional market share and continue the successful growth of TJX in the U.S. and internationally.”
The ceo credited the company’s impressive growth to increased store traffic. A rarity in the era of e-commerce, as brick-and-mortar stores continue to shudder at an alarming rate and consumers gravitate to the convenience of online shopping. But The TJX Cos. — despite T.J. Maxx’s and Marshalls’ minimal online presence — have been able to buck the trend.
That’s because shoppers still enjoy the treasure hunt vibe that comes with entering an off-price retailer — something that is difficult to replicate online. Same-store sales at Marmaxx, for example, the company’s largest division, grew 4 percent in the most recent quarter. Comps at TJX International, meanwhile, rose 6 percent during the three-month period.
“TJX managed to prove yet again that the off-price sector remains incredibly healthy and their model continues to thrive and take share, in spite of being the market-share leader,” Ike Boruchow, an analyst at Wells Fargo, wrote in a note. “They are one of the best positioned models in our space today.”
The retailer also bought a 25 percent stake in the privately held Familia, Russia’s only major off-price apparel and home fashion retailer, earlier this month. And, TJX raised its full-year EPS guidance.
“We expect that this reflects the strong availability of product in the marketplace, as well as optimism ahead of the holiday,” Kate Fitzsimons, an analyst at RBC Capital Markets, wrote in a note.
Shares of TJX are up roughly 30 percent year-over-year.