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TJX (TJX) , which owns TJ Maxx, HomeGoods, Marshalls, etc., recently saw a spike in sales, and it is confident that it will be able to maintain that momentum even if President-elect Donald Trump passes a policy that some retailers claim will negatively impact their consumers’ wallets.
In TJX’s fiscal third-quarter earnings report for 2024, the company said overall comparable store sales increased by 3% year-over-year.
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Specifically, Marshalls, TJ Maxx and Sierra combined, grew their comparable store sales in the U.S. by 3%, compared with the same time period last year. Also, HomeGoods and HomeSense’s U.S. comparable store sales rose by 3% year-over-year.
Related: Target flags startling customer behavior ahead of holidays
The growth in sales contributed to TJX's net income of almost $1.3 billion, or $1.14 a share, during the quarter, up 11% from what it earned during the same quarter in 2023.
TJ Maxx could benefit from the 'chaos' of Trump's tariffs proposal
As TJX sees a boost in sales, it claims that Trump’s proposed tariffs, which include 60% to 100% on all goods that come from China and 10% to 20% on goods imported from all other countries, will actually help its stores thrive.
Tariffs are fees companies usually pay to import goods from overseas, and often, the extra costs are passed down to consumers, resulting in higher prices for goods/services.
Chip Somodevilla/Getty Images
During a recent earnings call, TJX CEO Ernie Herrman claimed that the company imports a “very small portion” of its goods from overseas.
“The bulk of our inventory is bought from brands,” said Herman during the call. “So we don’t even have visibility into where those goods are from.”
TJ Maxx, HomeGoods, Marshalls and other TJX stores mostly rely on brands having excess inventory and other supply chain disruptions in order to sell merchandise for 20% to 60% less than their full price.
Related: Lowe’s sounds alarm bells around a growing problem
Herman said that the proposed tariffs could push its manufacturers to order their goods in bulk early in an effort to avoid paying the extra tax once it's officially imposed. He claims that this could create “additional availability of goods at advantageous prices” for TJX’s companies.
“When there’s chaos out there in the market a little, if that happens a little bit on certain categories, ultimately, usually, that’s an opportunity for us,” said Herman.
Retailers sound the alarm on Trump's proposed tariffs
Some retailers have recently been warning their consumers that Trump’s proposed tariffs could force them to increase their prices.