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Assessing TJX Companies’ Fiscal 1Q18 Results

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Part 2
Assessing TJX Companies’ Fiscal 1Q18 Results PART 2 OF 6

Analyzing TJX Companies’ International Business in Fiscal 1Q18

International segments

TJX Companies (TJX) has two international segments TJX Canada and TJX International. TJX’s Canada segment accounted for 9.5% of the company’s net sales in fiscal 1Q181. TJX’s International segment, which includes the company’s stores in Europe and Australia, contributed 12.3% of the fiscal 1Q18 net sales.

Analyzing TJX Companies’ International Business in Fiscal 1Q18

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TJX Canada’s sales

In fiscal 1Q18, TJX Canada’s net sales grew ~7.7% on a year-over-year basis to $739 million. The segment’s same-store sales rose 3% in fiscal 1Q18—compared to 14% in fiscal 1Q17. The company blamed unfavorable weather for the slower same-store sales growth rate during the quarter. At the end of fiscal 1Q18, TJX Canada operated 258 Winners stores, 109 HomeSense stores, and 61 Marshalls stores.

TJX International’s sales

In fiscal 1Q18, TJX International’s sales fell 2.5% and the segment’s same-store sales were flat compared to fiscal 1Q17. Foreign currency translation had a $102 million negative impact on the segment’s fiscal 1Q18 top line.

At the end of fiscal 1Q18, TJX Companies operated 515 T.K. Maxx stores and 46 HomeSense stores in Europe and 35 T.K. Maxx stores in Australia.

Unlike TJX Companies, rival off-price retailers Ross Stores (ROST) and Burlington Stores (BURL) lack an international presence.

For fiscal 2018, TJX Companies expects TJX Canada’s same-store sales to grow 2%–3% on sales of $3.3 billion–$3.4 billion. TJX International is expected to deliver same-store sales growth of 1%–2% on sales of $4.7 billion in fiscal 2018.

In the next part, we’ll analyze TJX Companies’ fiscal 1Q18 earnings.

  1. Fiscal 1Q18 ended on April 29, 2017
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