T.J. Maxx just announced solid earnings, with revenue and profits both coming in better than analysts had been expecting. Plus, the off-price retailer announced that 2023 was a record year for the bottom line.
“We surpassed $50 billion in annual sales, a milestone for our company,” said Ernie Herrman, CEO and president of parent company TJX, in a statement. The company’s stock was flat in pre-market trading and opened that, but it did eke out a new record just about $100 a share.
Swinging doors
The big number from the earnings release is part of a long pattern that discount destinations like T.J. Maxx, along with its Marshalls and HomeGoods stores, has taken advantage of. In-person shoppers still like going there for the stuff they can’t get through online shopping, and that loyalty shows up in a way that straight-price stores can’t muster.
A retail report released last month finds that fewer than two in five shoppers visited full-price shops to buy their clothes, down from more than half of them just five years ago. Additionally, more of them are now visiting off-price stores — like T.J. Maxx — than their full-price counterparts.
“Last year saw an acceleration of the redistribution of foot traffic between non-off-price apparel retailers, off-price apparel chains, and thrift shops—a trend which began even before covid,” read the report from the data firm Placer.ai.