Latest news with #ErnieHerrman
Miami Herald
2 days ago
- Business
- Miami Herald
Marshall's, T.J. Maxx CEO shares key news for #MarshallFinds fans
Marshalls and T.J. Maxx have semi-cult followings. The companies more or less created the treasure hunt model which drives customers to stores even when they don't need something. My wife and son will go to Marshalls simply to see if the local store has a good deal on a designer brand. They might go there with an idea in mind, like "I need a few more nice shirts," or "I could use a new dress for that event in a few months," but mostly they go as entertainment. Related: Is the United States economy bad right now? Invariably, even when they don't need something my son finds some Polo socks or a T-shirt from a brand too trendy for me to know of its existence. That's not unique to how my family shops at Marshalls, it's essentially the business model for all the brands under the TJX banner. Get people into its stores by offering an ever-changing selection of amazing deals. Don't miss the move: Subscribe to TheStreet's free daily newsletter It's a business model that has spawned a lot of knockoffs, none of which has quite captured the magic of the two TJX Companies (TJX) sister sister companies. Marshalls and T.J. Maxx drive foot traffic which seems to results in that invariably leads to sales even when people had no plans to buy anything. That has led to the #MarhsallsFinds hashtag where people share what they bough at what prices. Of course, for that to work, the company needs access to inventory. T.J. Maxx and Marshalls buy retail inventory other retailers can't sell. Sometimes that means getting high-end brands at discount prices when the original manufacturer makes too much or misjudges demand. The original seller would hurt sales of new merchandise if it offered massive sales right next to those items. Instead, those items get bought by TJX which generally can't advertise the brands it has (hence the viral hashtag. Struggling retailers and even whole chains going out of business creates opportunities for Marshalls and T.J. Maxx. That might mean buying lots from a chain that has closed or taking on an order a manufacturer might have otherwise been stuck with. TJX CEO Ernie Herrman is bullish about his company's positioning. "I'd like to start with a few comments on the current environment and the reasons for our continued confidence in our business. We have a very long track record of successfully navigating through many types of challenging economic and retail markets," he shared during the company's first-quarter earnings call. More Retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers He believes that adversity has actually been a positive for the various TJX brands (which also includes HomeGoods). "Each time, we've emerged as an even stronger company with greater market share opportunities. We have a very experienced leadership team that has worked together for multiple decades. While we're not immune to tariff pressure, we are laser focused on our initiatives to offset them by remaining flexible and executing our opportunistic buying approach," he shared. Herrman explained why he thinks his brands are well-positioned. "First is the value proposition we offer to our customers. For us, value is a combination of brand, fashion, quality and price. Our customer surveys tell us that we have an excellent reputation as a value leader in each of our geographies," he said. He also believes that the current market should deliver customers to his stores. "As a trusted value retailer, we have historically attracted new shoppers to our stores in many different types of environments. Therefore, we are convinced that we will have an opportunity to gain market share if more consumers seek out value in the current environment," he added. Herrman also believes that TJX has a structural advantage over its rivals. "Our team of over 1,300 buyers source goods from an ever changing universe of over 21,000 vendors from more than 100 countries around the world. We have a global buying infrastructure and supply chain that has been in place for multiple decades," he added. Related: Chapter 11 bankruptcy, financial woes drag down 3 whiskey brands CFO John Klinger also gave some color on inventory and market opportunities. "Moving to inventory. Balance sheet inventory was up 15% and inventory on a per store basis was up 7% versus last year. We feel great about our inventory levels and have been taking advantage of the excellent deals we have been seeing in the marketplace. Availability of merchandise remains outstanding and we are set up very well to continue to flow fresh assortments to our stores and online," he shared. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
09-07-2025
- Business
- Yahoo
TJX's Q1 Earnings Call: Our Top 5 Analyst Questions
TJX's first quarter results prompted a negative response from investors, despite revenue and profit meeting or exceeding Wall Street's expectations. Management attributed the quarter's performance to steady growth in customer traffic across all divisions and categories, with particular strength in the HomeGoods and international segments. CEO Ernie Herrman emphasized, 'Comp sales grew 3% at the high-end of our plan, with every division, both in the U.S. and internationally, driving increases.' However, management acknowledged margin pressures from unfavorable inventory hedges and rising payroll costs, factors that weighed on profitability. Is now the time to buy TJX? Find out in our full research report (it's free). Revenue: $13.11 billion vs analyst estimates of $13.02 billion (5.1% year-on-year growth, 0.7% beat) EPS (GAAP): $0.92 vs analyst estimates of $0.91 (in line) Adjusted EBITDA: $1.61 billion vs analyst estimates of $1.57 billion (12.3% margin, 2.5% beat) Revenue Guidance for Q2 CY2025 is $13.8 billion at the midpoint, below analyst estimates of $14.08 billion EPS (GAAP) guidance for the full year is $4.39 at the midpoint, missing analyst estimates by 2.7% Operating Margin: 10%, in line with the same quarter last year Locations: 5,121 at quarter end, up from 4,972 in the same quarter last year Same-Store Sales rose 3% year on year, in line with the same quarter last year Market Capitalization: $139.7 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Lorraine Hutchinson (Bank of America) asked about inventory availability amid shipping delays and tariff uncertainty. CEO Ernie Herrman explained that while some categories may see less supply, TJX's flexible buying model enables shifts to alternative categories, and inventory levels are strong. Matthew Boss (JPMorgan) inquired about the progression of sales at Marmaxx and gross margin outlook. CFO John Klinger noted that sales improved as weather disruptions eased, and margin headwinds in the first half are expected to moderate with mitigation efforts in the back half. Adrienne Yih (Barclays) questioned the company's approach to vendor price negotiations and margin management in a high-tariff environment. Herrman described leveraging vendor relationships, adjusting price points, and using category flexibility to maintain value for shoppers. Alex Straton (Morgan Stanley) sought clarity on HomeGoods margin trajectory and tariff impacts on home and toys. Management anticipates continued profitability improvement in HomeGoods and is closely watching sourcing risks for toys, with flexibility to adjust product mix as needed. Michael Binetti (Evercore) asked about the potential for trade-down behavior and customer acquisition trends. Herrman reported no clear signs of basket trade-down, with transaction-driven sales increases and new category introductions attracting shoppers from other retailers. In the coming quarters, the StockStory team will watch (1) TJX's effectiveness in mitigating tariff and supply chain headwinds, (2) continued momentum in customer transactions across U.S. and international segments, and (3) execution of category mix and sourcing strategies, particularly in HomeGoods and toys. Performance in new markets and results from targeted marketing campaigns will also be important markers. TJX currently trades at $124.56, down from $135 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
24-05-2025
- Business
- Business Insider
TJX CEO wants you to find something on the rack that 'almost feels too cheap'
It's an experience that almost anyone shopping at TJ Maxx, Marshalls, Sierra, or Home Goods eventually has: you're browsing items, see a price tag, and think, "that can't be right." Before you know it, you're a full-blown Maxxinista. As it happens, TJX CEO Ernie Herrman said the company wants you to feel a little suspicious when you encounter a sharp deal. "We want a customer to actually say, 'That almost feels too cheap,'" he said in a quarterly earnings call Wednesday. "One out of every 10 hangers I want a customer saying, 'Boy, that that almost feels too inexpensive,' strangely enough." The playbook has been working for the company, which reported strong sales and traffic gains at its family of brands despite a broader slowdown in apparel and housewares categories in recent years. Apart from a bad-weather month in February, monthly visits to TJ Maxx and Marshalls were up roughly 6% to 8% in January, March, and April of this year versus last year, according to foot traffic data from Visits to traditional apparel stores have been basically flat or down for the period. also found that not only do shoppers visit more often, they spend more time in the stores as they hunt for those surprising deals. "A significant part of this success may stem from the segment's inherent 'treasure-hunt' experience — off-price shopping cultivates a browsing mentality, encouraging visitors to linger and explore the constantly changing inventory," Bracha Arnold wrote. This year so far, found TJ Maxx shoppers spent an average of 40.3 minutes in the store, while shoppers at traditional apparel chains averaged 33.3 minutes — a difference of about 20% more time spent trying to find that suspiciously good deal. Of course, there's a lot more to the equation than simply offering low prices. "Value isn't just a function of competitive prices," Global Data retail analyst Neil Saunders said in a note. "It also comes from buying well and meeting customer needs. In our view, TJX merchants are excellent at doing at that and they are one of the key assets that will propel the company forward." On the earnings call, Herrman said TJX has a team of over 1,300 buyers who have relationships with more than 21,000 vendors across more than 100 countries around the world. And while the company is not immune from tariff impacts (Herrman said TJX directly imports about 10% of its goods), much of its sourcing is downstream from other brands and retailers that will likely bear a fair amount of the costs, rather than TJX itself. Global trade chaos now represents a key opportunity for TJX to load up on interesting merchandise, since unexpected inventory surpluses are where off-price retail shines. Jefferies retail analyst Corey Tarlowe found that retail inventories are on the rise for the first time in two years, reversing a trend of leaner, more disciplined inventory strategies in the post-COVID era. "Given these trends, the availability for TJX should remain robust. TJX management noted inventory availability in the marketplace is better than usual," Tarlowe wrote. On the earnings call, Herrman said his buyers aren't tasked with a complex set of price sheets or profit margin targets. Their primary task is finding exciting products they can offer at a compelling discount to the full-price store around the corner. "Our only contract to the customer is that we will have great value on the goods that we put out there, and it'll be below the out-the-door price of traditional retailers," he said.
Miami Herald
22-05-2025
- Business
- Miami Herald
There are more Marshalls near me than ever before, here's why
TJ Maxx, Marshalls, and HomeGoods aren't just stores to me. They're part of a family ritual that's been passed down like a cherished recipe. Growing up, a trip to Marshalls with my fashion-forward Nana wasn't just shopping -it was a full event. We'd load up a cart, grab the family-size dressing room, and try everything on together. It was one of our favorite ways to bond. We didn't need a reason to go. It was our version of quality time, more spontaneous than a brunch reservation and way more fun. Related: An alarming TikTok trend is targeting U.S. shoppers That tradition didn't end with childhood. To this day, I still make those same trips - only now it's with my mom and my aunt. Same stores, same oversized dressing room, same excitement every time we hear a price check on an unexpected deal. There's something comforting about knowing you can walk into a Marshalls or HomeGoods and never quite know what you'll find - but still walk out with something you love (and probably didn't need, but hey, worth it). And it turns out I'm not alone. TJX (TJX) , the company behind those beloved off-price stores, is seeing demand soar - and it's opening more stores to meet it. In its latest earnings report, TJX Companies - the parent of Marshalls, TJ Maxx, HomeGoods, Sierra, and Homesense - made one thing very clear: people are still showing up, and they're showing up strong. The off-price retail giant reported a 5% increase in net sales for the first quarter of fiscal 2026, totaling $13.1 billion. Comparable sales rose 3%, driven by a jump in customer transactions - not higher prices, but more people walking through the doors. And to meet that rising demand, TJX is adding even more locations. The company opened 36 new stores across its banners last quarter, bringing its total to 5,121 stores worldwide. That includes new Marshalls, TJ Maxx, and HomeGoods locations across the U.S., as well as continued expansion in Europe under the TK Maxx name. Related: Lululemon fans get surprising news about store changes Ernie Herrman, TJX CEO and president, credited the company's continued success to its compelling value proposition and treasure-hunt shopping experience. In other words, that same thrill I felt as a kid in the dressing room with my Nana? It's still working - and it's working globally. The momentum is already spilling into Q2. TJX says the quarter is off to a strong start and it's holding steady on its full-year outlook, confident that the current pace of growth will continue. TJX isn't riding a short-term retail trend. It's leaning into a long-term shift in consumer behavior. As inflation continues to pinch household budgets and shoppers get savvier about spending, stores like Marshalls and TJ Maxx offer a kind of permission to indulge without overspending. The model isn't flashy - it's dependable. Instead of chasing big e-commerce plays or ultra-fast fashion cycles, TJX keeps its focus tight: buy name-brand merchandise at a discount, pass the savings on, and keep inventory moving fast. That formula allowed TJX to post a pretax profit margin of 10.3%, which beat internal forecasts even as margin pressures from tariffs and labor costs persisted. And the company isn't just making money; it's sharing it. In Q1 alone, TJX returned $1 billion to shareholders through stock buybacks and dividends. For many shoppers, a trip to Marshalls isn't about necessity - it's about joy. It's about the possibility of finding something unexpected and feeling like you scored. And in a retail landscape full of sameness and stress, that kind of emotional payoff is powerful. More stores, strong sales, and unwavering customer loyalty? That's the kind of retail story even my Nana would have approved of. Related: Target claims big win with self-checkout changes The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Bloomberg
21-05-2025
- Business
- Bloomberg
TJ Maxx Operator Says It Has Flexibility to Offset Tariffs
TJX Cos. executives said the company's global network of vendors and flexibility on price and merchandise will help the company manage tariff pressures. 'We believe there's opportunity for us to buy better,' said Chief Executive Officer Ernie Herrman on a call with analysts.
