T.J. Maxx shoppers might start seeing higher prices in the off pricer’s stores next quarter.
TJX Companies CEO Ernie Herrman said in a call with investors that the company is seeing “very, very little resistance” in regards to price changes, which it is rolling out across different categories.
Like other companies, the off-price retailer, which owns T.J. Maxx and Marshalls, had been impacted by general price increases due to inflation. And while the company has strategically implemented these increases, it has managed to still maintain its value proposition for consumers looking for a deal.
“In a retail environment where overall pricing has been reset higher, we believe our value proposition will be even more compelling and visible to consumers and that our treasure hunt shopping experience will hold tremendous appeal,” Herrman said.
The Framingham, Mass.-based off-price retailer reported a net profit of $1.062 billion in the third quarter of fiscal 2023, up from $1.023 billion the same time last year. Net sales for the third quarter of 2023, however, were $12.2 billion, a decrease of 3% from $12.5 billion versus the third quarter of 2022.
Herrman said on the earnings call that the retailer is well positioned for the holidays, given a marketplace that is “absolutely loaded with quality branded merchandise across good, better and best brands.” Herrman also noted that the company is focusing even more this holiday season on fresh flowing branded goods that are gift-oriented coming in later than normal, which, he said, is going to “bode well” for Q4 sales, especially in the last week or two right before Christmas.
Looking ahead, TJX is now planning total sales for the full fiscal year in the range of $49.3 billion to $49.5 billion. The change versus its previous guidance is due to its forecast that unfavorable foreign exchange rates will negatively impact Q4 reported sales.