TJ Maxx parent beats holiday-quarter sales estimates on steady demand

By Thomson Reuters Feb 28, 2024 | 6:37 AM

(Reuters) -TJ Maxx parent TJX Cos surpassed market expectations for fourth-quarter sales on Wednesday as budget-conscious shoppers flocked to the off-price retailer’s stores in search of holiday deals.

With interest rates still high, customers are seeking bargains on apparel, cosmetics and home goods, boosting sales at discount retailers such as TJX and Ross Stores.

TJX also announced a share buyback plan of $2 billion to $2.5 billion in fiscal 2025.

Net sales for TJX’s core Marmaxx segment in the U.S. grew 5% in the quarter, driven by demand for cosmetics and skincare products. Its HomeGoods segment rose 7%.

Overall comparable store sales rose 5%, higher than analysts’ expectations of 4.15%, indicating holiday demand remained robust, aided by a healthy inventory.

The company posted net sales of $16.41 billion for the three months to Feb. 3, compared with analysts’ average estimate of $16.21 billion, according to LSEG data.

(Reporting by Savyata Mishra and Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath)