Framingham, Mass. – The balance of sales from home merchandise at TJX Cos.’ banners is settling back into normal levels following the pandemic era boom.
“We were up against an enormous increase last year,” noted CEO and president Ernie Herrman.
While the company’s volume of sales in home categories is declining compared to 2021, its hasn’t slowed as much at TJX as it has at other retailers, he told investors during Wednesday’s quarterly call. At Marmaxx, the sales contribution from home vs. apparel is already trending back to where it had been in 2020.
Next year, the company foresees home returning to its typical growth of positive low single-digit comps.
Same-store sales at HomeGoods fell 16% in Q3 against a 34% spike in the year-ago period. At Marmaxx, where apparel was the stand-out performer, comp rose 3% on top of 11% growth last year.
Herrman acknowledged the macroeconomic uncertainty buffeting consumers, but said it was hard to determine how much of the company’s market share gains are coming from trade-down shoppers.
“We are trying to trade as broadly as we can. We’re going after all demographics,” he said.
Although company-wide sales were on the light side during Q3, profit beat expectations and TJX raised its guidance for Q4. The company now expects U.S. comparable store sales will be flat to up 1% compared to a 13% U.S. open-only comp store sales increase in last year’s fourth quarter.