What to Expect from TJX and Ross’s Sales Growth



Recent performance

TJX Companies’ (TJX) sales grew 8.7% to $39 billion in fiscal 2019, which ended on February 2. The company’s same-store sales grew 6% in fiscal 2019, which was a significant improvement compared to same-store sales growth of 2% in fiscal 2018.

TJX Companies’ top-line growth in fiscal 2019 was driven by strong same-store sales and a 3% contribution from non-comparable sales (includes sales from new stores, closed stores, and e-commerce sales). Same-store sales at the company’s Marmaxx (US), HomeGoods (US), TJX Canada, and TJX International segments grew 7%, 4%, 4%, and 3%, respectively, supported by higher customer traffic.

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Ross Stores’ (ROST) sales grew 6.0% to $15.0 billion in fiscal 2018, which ended on February 2. Ross Stores’ top-line growth in fiscal 2018 was driven by the addition of 95 net new stores and same-store sales growth of 4%. The same-store sales growth in fiscal 2017 was 4% as well. Overall, Ross Stores’ net sales, as well as same-store sales growth, lagged TJX Companies in the previous fiscal year.

Sales outlook

TJX Companies expects its consolidated sales to increase in the range of 5% to 6% to $41 billion to $41.2 billion in fiscal 2020, which ends on February 1, 2020. TJX Companies expects its same-store sales growth in the range of 2% to 3%.

TJX Companies aims to capture more business in the current fiscal year through new stores, various marketing initiatives across television and digital media, and by enhancing its loyalty programs.

Ross Stores issued conservative sales guidance for its fiscal 2019, which ends on February 1, 2020. The company expects a highly competitive retail landscape and an uncertain macro environment to put pressure on its performance. Ross Stores expects its fiscal 2019 sales growth in the range of 5% to 6% and same-store sales growth in the 1% to 2% bracket. Ross Stores continues to invest in its merchandising organization to ensure that it offers attractive bargain deals to its customers and thus drives improved customer traffic. Ross Stores also sees significant opportunity to expand its store base to boost its sales.


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