Home Home Decor TJX: There’s no push-back on higher prices

TJX: There’s no push-back on higher prices


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.

 





Source link

RELATED ARTICLES

Amazon reports unprofitable Q4 and full year for 2022

SEATTLE – Net income for e-commerce giant Amazon decreased $300 million in the fourth quarter of 2022, compared with earnings of $14.3 billion in...

Kohl’s quells activist investor just in time for new CEO succession

Menomonee Falls, Wis. – As it seats its new CEO, Kohl’s has reached a détente with the activist investor that has bedeviled the...

New 700-home Lewes neighbourhood claims to be UK’s most sustainable | News

Register for free to finish this article. Sign up now for the following benefits: Four FREE articles of your choice per month Breaking news, comment and...
- Advertisment -

Most Popular

Amazon reports unprofitable Q4 and full year for 2022

SEATTLE – Net income for e-commerce giant Amazon decreased $300 million in the fourth quarter of 2022, compared with earnings of $14.3 billion in...

Kohl’s quells activist investor just in time for new CEO succession

Menomonee Falls, Wis. – As it seats its new CEO, Kohl’s has reached a détente with the activist investor that has bedeviled the...

New 700-home Lewes neighbourhood claims to be UK’s most sustainable | News

Register for free to finish this article. Sign up now for the following benefits: Four FREE articles of your choice per month Breaking news, comment and...

20 Best Tall Indoor Plants To Liven Up Your Space

Courtsey A beautiful indoor plant can dress up any room by adding color, texture and dimension to the space. While you can't go wrong...

Recent Comments