Soft home rebounds at TJX

Framingham, Mass. – HomeGoods, the 270-store division of TJX Companies, saw first-quarter profits rise nearly 20% -- and soft home helped lead the way, said TJX president and ceo Carol Meyrowitz to analysts this morning.

“Soft home was up about 5%” in the HomeGoods unit, Meyrowitz said, noting, “We are beginning to see top of bed and the sheet business turn around.” She added that the chain’s towel wall also is performing well. HomeGoods, with quarterly sales of $333.2 million, saw profit up 19.6% to $10.2 million. Comps were up 3%, beating the companywide rate of 2%.

Meyrowitz also singled out the HomeGoods Kids initiative, now in 200 stores, as 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. Nevertheless for the full year ahead, 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. TJX projects a 3% comp gain.

In the first quarter, missy sportswear was the single biggest disappointment, the company said, due in some part to unseasonably cool and wet spring weather.

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.”

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!