Soft Home Rebounds at TJX
May 21, 2007,
HomeGoods, the 270-store division of TJX Companies, saw first-quarter profits rise nearly 20% — and soft home helped lead the way, TJX president and ceo Carol Meyrowitz told analysts last week.
Meyrowitz said the HomeGoods Kids initiative, now in 200 stores, is a growing success, and noted that the "Now You Can" ad campaign is showing results.
TJX reported a quarterly sales increase of 6% to $4.1 billion, but income of $162 million was off 1% from the prior-year quarter. For the full year, the company projects earnings from continuing operations (excluding any "computer intrusion" costs) of $1.80 to $1.85: a 10% to 13% increase year-to-year.
Meyrowitz intimated that the uncertain economic climate is not necessarily a bad thing for the 2,500-store off-price leader, and as is customary for TJX executives, she lauded her buying staff for its opportunistic flair. Noting that the chain's success is built on "intelligent risk-taking" for a merchandise mix that ends up "exciting our customers," Meyrowitz stated, "It's not just raining — but it's pouring merchandising opportunities."
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