Global fashion and home furnishings retail group TJX Companies has reported a decline in sales across its European operations.
According to its latest Q3 trading update, total TJX International sales, which covers the EU, UK and Australia including brands TK Maxx and Homesense, decreased 16% to $1.4bn from $1.7bn against the same period last year.
Total group sales fell 3% to $12.1bn from $12.5bn. Its core US market saw sales result at $9.4bn, representing a small decline of 1%. Net income for the third quarter was $1.1bn.
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated: “I am very pleased with our third quarter performance. U.S. comparable store sales exceeded our expectations, and overall pretax margin, merchandise margin, and earnings per share were strong. I am particularly pleased with the results at our Marmaxx division, which delivered a 3% comp sales increase, driven by a strong increase in its apparel business. Across our geographies, our values and exciting, treasure-hunt shopping experience continued to resonate with consumers throughout the quarter.
“Looking forward, while not immune to macro factors, we are convinced that our flexible business model and value proposition will continue to be tremendous advantages, as they have been for more than four decades and through many kinds of retail and economic environments. We are excited about the abundance of deals we see in the marketplace for quality, branded product.
“Throughout the holiday season, we will be flowing fresh and enticing gift-giving assortments to our stores and online to appeal to our wide customer demographic, and we will be emphasizing our value leadership in our marketing. We remain focused on our long-term vision to become an increasingly profitable, $60-billion-plus revenue company.”
Furthermore, the group has promoted John Klinger to Executive Vice President and Chief Financial Officer, with effect from 29 January 2023.
Ernie added: “I am very pleased with John’s promotion to TJX’s CFO position. John has worked for TJX for over two decades and has both the financial expertise and deep understanding of TJX that are vital to this role. He has worked closely with Scott over many years, and for the past few years, has overseen most of the corporate finance functions as Corporate Controller. John has worked in both divisional and corporate areas for TJX and in the U.S. and internationally. He is seen as a leader within TJX with a strong commitment to the professional development of the Finance team.”