TJX Net Sales Miss Estimates In Q2

With heightened competition in the off-price space, TJX Cos. reported comp sales and total revenue that came out below the estimates of analysts. The discount department store retailer’s net sales were $9.78 billion, which were below estimates of $9.90 billion, Chain Store Age reported.

Same-store sales increased 2 percent at Marmaxx U.S. (T.J.Maxx and Marshalls), 6 percent at TJX International and 1 percent at TJX Canada. The TJX Companies CEO and President Ernie Herrman said, according to the report, “We were very pleased that customer traffic drove our consolidated comp and was up at each of our four major divisions.”

Herrman continued, “This quarter marks the 20th straight quarter of customer traffic increases at TJX and Marmaxx. This speaks to the consistency and fundamental strength of our treasure-hunt shopping experience through many types of retail and economic environments.”

GlobalData Retail Managing Director Neil Saunders noted in comments that the retailer’s largest hurdle is that shoppers have not taken in the benefits of the bonus and tax windfalls of the year before. He said, according to the report, “This means their attitude to buying product has been a little more cautious and conservative, with visit frequency and volumes down marginally.” Saunders continued per the report, “When stacked up against some tough prior year numbers, this has flattened the growth curve.”

In separate news, reports surfaced earlier this year that T.J.Maxx was partnering with Instagram tastemakers to promote a term called “Maxximizing.” The retailer was launching a game throughout several days and cities that people could play on Instagram. The five tastemakers were Rachel Choy, a lifestyle blogger; Hannah Simone, an actress; Jeremiah Brent, an interior designer; Alli Webb, founder of Drybar; and Myleik Teele, founder of curlBOX. They were to pick items for six product installations featured in large pods in Los Angeles March 14-16, New York City March 5-7, and in new locations in those cities every day.