TJX Blames Self-Inflicted Store Mix Errors for Marmaxx Sales Miss
TJX is trading near its 52-week low of $133.34 (9.8% above the low).
Summary
TJX's largest segment, Marmaxx, posted only 1% same-store sales growth, down from 3% a year ago, and CEO Ernie Herrman admitted the miss was self-inflicted—poor store mix execution left the wrong goods in the wrong stores. The stock fell 3.1% to $146.22, now down 5.2% year to date. Management raised full-year adjusted EPS guidance to $5.15-$5.20 from $5.08-$5.15, but that still trails the $5.23 consensus. The company plans to open more stores next year targeting 4% growth and is stepping up marketing ahead of the holidays. TJX also lifted its global store target to 7,500, betting bigger on brick-and-mortar.
At the time of this announcement, TJX was trading at $146.45 on NYSE in the Trade & Services sector, with a market capitalization of approximately $161.8B. The 52-week trading range was $133.34 to $170.00. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.