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How Did TJX Companies’ International Business Fare?

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Growth across both divisions

TJX Companies (TJX) generated double-digit sales growth in its TJX Canada and TJX International segments in the second fiscal quarter of 2019, which ended on August 4. At the end of the second fiscal quarter of 2019, the TJX Canada segment operated 270 Winners stores, 120 HomeSense stores, and 79 Marshalls stores. The company’s TJX International segment included 552 T.K. Maxx stores and 61 HomeSense stores in Europe and 42 T.K. Maxx stores in Australia.

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Performance of TJX Canada

TJX Canada’s sales grew 12.7% on a year-over-year basis to $938 million in the second fiscal quarter of 2019. The segment’s same-store sales growth was 6%—compared to 7% in the second fiscal quarter of 2018. The segment’s apparel business performed well. However, the company thinks that there’s room for improvement in the HomeSense business.

The company expects TJX Canada’s same-store sales growth to be 3%–4%. The segment’s overall sales are expected to be $3.8 billion–$3.9 billion in fiscal 2019.

TJX International’s sales

TJX International’s sales grew 12.3% to $1.2 billion in the second fiscal quarter of 2019. The segment delivered impressive same-store sales growth of 4%—compared to 1% growth in the second fiscal quarter of 2018. The company’s UK business performed well compared to its competitors. The sales in Australia were strong in the second fiscal quarter of 2019.

For the TJX International segment, the company expects same-store sales growth of 2% on sales of $5.2 billion in fiscal 2019.

Next, we’ll discuss TJX Companies’ margins in the second fiscal quarter of 2019.

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