Framingham, Mass. – TJX Cos. nameplates are off to a strong start for the fourth quarter, executives said this morning.
Asked during today’s quarterly call with analysts how TJX shoppers are reacting to inflationary pricing, CEO and president Ernie Herrman replied, “No push-back to pricing.”
He added, “We’ve had a higher hit rate of success than we anticipated. We thought there would be handful of items here or there [customers might not buy], but that has not been the case.”
TJX Cos. buyers determine the retail price first then work back from there to establish the right value proposition for an item, also aiming to maintain a gap between its pricing and that on like items at full-price retailers, he said.
The company is well-positioned for the holiday season and will boost its seasonal advertising spend to emphasize product availability and assortment. Most Q4 inventory has already been delivered to or is scheduled to arrive in stores and online ahead of the holidays.
“Our store shelves are full with great gifting selections today, and we expect them to continue being that way throughout the holiday season,” said Herrman.
The third quarter was a strong period at all divisions in the U.S., Canada and Europe – with a robust showing for home across all banners.
HomeGoods saw comp on open-only stores – as measured according to the days open in the period – jump 34%. Sales climbed 20% to $2.25 billion during the quarter ended Oct. 30. The chain experienced increases in both traffic and basket.
The home comp at Marmaxx was in line with that at HomeGoods, Herrman said. For the full division, open-only comp was up 11%. Sales rose 25% to $7.2 billion, with growth in both traffic and basket.
“We’re getting new market share and new customers,” said Herrman. “We think many of these customers are going to stick. We’re obviously making them very happy when they come in.”
Total company sales increased 20% to $12.5 billion, with consolidated open-only comp up 14% on top of a 4% increase in the year-ago Q3.
Net income was up 18% to $1 billion, or $0.84 per diluted share.