Significant domestic sales
TJX Companies’ (TJX) domestic business consists of its Marmaxx and HomeGoods divisions. The off-price retailer’s Marmaxx segment includes sales from T.J. Maxx and Marshalls stores as well as from tjmaxx.com. In the first nine months of fiscal 2019, which ended on November 3, the Marmaxx segment accounted for 62% of the company’s overall sales, while the HomeGoods segment contributed 15%.
Recent performance and expectations
In the first nine months of fiscal 2019, sales of the Marmaxx segment increased 10.6% to $17.2 billion. This growth was a result of the contribution from new stores and same-store sales growth of 7%. The segment’s sales growth was driven by higher units sold and a rise in average ticket size. As of November 3, the company operated 1,247 T.J. Maxx stores, 1,091 Marshalls stores, and 35 Sierra Trading Post stores. TJX Companies believes that there is a potential to expand the store network of the Marmaxx segment to 3,000 stores over the long term.
TJX Companies expects sales of the Marmaxx segment to come in at $23.8 billion in fiscal 2019, which ends on February 2, 2019, compared to $22.2 billion in fiscal 2018. The company expects the same-store sales of the Marmaxx segment to grow 6% in fiscal 2019.
Sales of the HomeGoods segment grew 15.8% to $4.1 billion in the first nine months of fiscal 2019 with same-store sales growth of 4%. As of November 3, TJX Companies operated 745 HomeGoods stores and 16 Homesense stores.
The company forecasts the HomeGoods segment’s sales to be $5.8 billion in fiscal 2019 with same-store sales growth of 4%. The segment’s fiscal 2018 sales were $5.1 billion.
TJX Companies sees significant opportunity in the home segment and expects to operate a total of 1,400 HomeGoods and Homesense stores over the long term.
Next, we’ll discuss the company’s international operations.