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Bloomberg
TJX Companies Inc, the owner of the Marshalls and TJ Maxx chains, reported sales growth that missed analysts’ projections, even as foot traffic into its stores continued to grow. The shares slipped.
Comparable sales rose 2 percent in the second quarter, below the average estimate for 3 percent growth, according to Consensus Metrix, and down from last year’s speedier 6 percent pace.
Inventory swelled to $5.1 billion as of the beginning of August, up from $4.5 billion a year earlier. That could be a red flag for investors that less popular items are piling up. Similar issues have plagued other department stores in recent quarters.
Still, even as same-store sales grew less than expected, the
retailer’s popular “treasure hunt†shopping experience is still driving buyers into stores. The company logged its 20th straight quarter
of customer traffic increases at TJX and Marmaxx, it said, setting it apart from rivals who haven’t been able to get new shoppers to visit as internet competitors grow.