Off-price retail parent company TJX Companies has reported strong earnings in its first quarter, with a 3% rise in comparable sales, amid an increasingly challenging market.
Additionally, total sales went up 5% to $13.11 billion, ahead of estimates of $13.02 billion.
Ernie Herrman, TJX’s president and CEO, said: “While we’re not immune to tariff pressure, we are laser focused on our initiatives to offset them by remaining flexible and executing our opportunistic buying approach.”
However, similarly to the other businesses in the US, TJX was negatively impacted by additional tariff costs, which led to profits falling to $1 billion compared to $1.07 billion in the year prior.
TJX is confident in its business strategy despite the slight dip in profits, which offers affordable merchandise from a diverse brand of portfolios, including TJMaxx, Marshalls, HomeGoods, HomeSense, TKMaxx and Sierra.
Herrman added: “I am convinced that our broad assortments of great brands and fashions, at compelling prices, will continue to be a tremendous draw for shoppers seeking value.
“Further, I am confident that the strength, flexibility, and resiliency of our off-price business model will serve us well in today’s macro environment, as it has throughout our long, successful history.”
In the upcoming fiscal year, the company expects consolidated comparable sales to increase by 2% to 3%.
Additionally, TJX expects the pretax profit margin to be between 11.3% and 11.4%.
TJX expanded its retail footprint during the first quarter, opening 36 new stores and has ambitious plans to open 130 new stores in 2025.
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