TJX Companies’ International Segments

In the previous part of this series, we looked at TJX Companies’ (TJX) US segments, Marmaxx and HomeGoods. TJX Companies also has the following two international segments:

• TJX Canada
• TJX Europe

TJX Companies has more than two decades of experience in Canada. As of the end of fiscal 2015, TJX Canada had 234 Winners stores, 96 HomeSense stores, and 38 Marshalls stores.

The Winners stores in Canada are comparable to T.J. Maxx stores in the United States. They offer apparel and home fashions. Some of these stores also offer fine jewelry and the Runway, a designer section. The HomeSense chain, which was launched in 2001, offers home fashions merchandise.

In 2011, TJX Companies introduced the Marshalls stores in Canada. The Marshalls stores are different from the Winners stores in terms of their expanded footwear department and the Cube juniors’ department.

The TJX Canada segment accounted for 9.9% of TJX Companies’ net sales and 10.0% of the total segment profits. The segment’s profit margin was 13.6% in fiscal 2015 ending January 31, 2015.

TJX Europe, the other international segment, has 440 stores under the T.K. Maxx and HomeSense brands. They’re located in the United Kingdom, Ireland, Germany, and Poland. In 2015, TJX Companies launched its first store in Austria. Part 9 of this series discusses the company’s international expansion plans.

Launched in 1994, T.K. Maxx stores offer a merchandise mix similar to T.J. Maxx, Marshalls, and Winners. The company opened its first HomeSense store in the United Kingdom in 2008. Currently, there are 33 stores in the United Kingdom offering merchandise similar to HomeGoods stores in the United States and HomeSense in Canada.

In fiscal 2015, the TJX Europe segment accounted for 14.1% of the company’s net sales and 8.6% of the total segment profits. The segment profit margin was 8.2%.

TJX Companies’ rivals Ross Stores (ROST) and Burlington Stores (BURL) lack an international presence. Upscale department store Nordstrom (JWN) opened its first store in Canada in 2014 and is further expanding internationally. In 2014, Macy’s (M) announced its plans to open a Macy’s store and a Bloomingdale’s store in Abu Dhabi, United Arab Emirates, in 2018.

TJX Companies makes up ~2.0% of the Consumer Discretionary Select Sector SPDR Fund (XLY). TJX Companies’ international segments have helped boost the company’s same-store sales.