TJX Cos. remains bullish on home after strong Q3
The home business was healthy across the board at TJX Cos., including in international regions and stores that carry a mix of home and apparel.
FRAMINGHAM, Mass. – The home business was healthy across the board at TJX Cos. in the third quarter, including in international regions and stores that carry a mix of home and apparel.
In the U.S., HomeGoods comped up 3% on top of a 9% increase in the year-ago quarter. The chain’s sales for the quarter ended Nov. 3 climbed 7% to $2.4 billion. At the 67-unit U.S. Home Sense chain – whose financial results are included in the HomeGoods figures – sales have also picked up as the company has tweaked the mix.
Home assortments in the company’s nameplates are benefitting from the collaboration between merchants in the Marmaxx, HomeGoods and international divisions, company CEO and president Ernie Herrman told investors during this week’s quarterly call.
“Our customers [are] open to look for fun, eclectic fashion home merchandise and an ever-changing assortment,” he added. “That has been picking up over the last few quarters. I’m feeling more bullish quarter by quarter.”
Consolidated net sales for Q3 climbed 6% to $14.1 billion, with company comp up 3% on top of a 6% increase in the year-ago quarter. Same-store sales rose in every division, driven in each case by higher transactions.
Gross profit margin was 31.6%, up 0.5 percentage points versus last year, primarily due to an increase in merchandise margin. Net income was $1.3 billion and diluted earnings per share were $1.14, up 11% versus $1.03 in the third quarter of last year’s Q3.
International Growth on the Agenda
TJX Cos. is moving to expand its international presence. During the third quarter, the company completed its investment in the joint venture with Grupo Axo, S.A.P.I. de C.V. (Axo) an operator of global brands in Mexico and South America in both full- and off-price formats. Its $179 million cash investment gives it a 49% stake in the enterprise, which includes over 200 stores under the Promoda, Reduced, and Urban Store banners.
In early Q4, TJX completed its investment for a 35% non-controlling, minority equity stake in Brands For Less (BFL) for $344 million. Based in Dubai, BFL is the region’s only major off-price retailer of branded apparel, toys, and home fashions. It currently operates over 100 stores, primarily in the UAE and Saudi Arabia.
The company is also planning to enter Spain with its TK Maxx banner in early 2026 and could eventually operate up to 100 stores in the country, said Herrman.
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