TJX
Cos. elevated a longtime company veteran to the finance chief role, a move that comes as the owner of retail brands such as T.J. Maxx, HomeGoods and Marshalls grapples with lower sales.
The Framingham, Mass.-based company Wednesday said
John Klinger
would become its next chief financial officer, effective Jan. 29. Mr. Klinger, who joined TJX in 2000, currently serves as executive vice president and corporate controller. He is set to succeed
Scott Goldenberg,
who has been CFO since 2012. Mr. Goldenberg will continue as senior executive vice president of finance with responsibility for corporate functions such as global communications, risk management and new business development, the retailer said. TJX declined to make Mr. Klinger available for an interview.
The company posted lower sales for the period ended Oct. 29 as declines in its U.S. homegoods division and the strong U.S. dollar weighed on the quarter’s results. U.S. comparable-store sales, which exclude e-commerce sites, fell 2%, driven by a 16% drop in comparable sales for the U.S. homegoods business. Meanwhile, comparable sales for the company’s Marmaxx business, which includes T.J. Maxx, Marshalls and Sierra stores, rose 3%.
Net income for the quarter rose to $1.06 billion, compared with $1.02 billion a year earlier. Net sales fell nearly 3%, to around $12.17 billion.
While TJX isn’t immune to macro factors, Chief Executive
Ernie Herrman
said Wednesday that the company’s off-price retail model will continue to be an advantage as consumers’ wallets remain stretched.
The company said it expects U.S. comparable-store sales to pick up in the holiday quarter and increased its outlook for U.S. same-store sales to flat to up 1% compared with the previous quarter’s prediction of flat to down 1%. For the 2023 fiscal year, TJX forecasts U.S. comparable-store sales to fall 1% to 2%. TJX in August projected a full year decline in U.S. same-store sales of 2% to 3%.
Other U.S. retailers have also posted mixed results for their latest quarters.
Target Corp.
on Wednesday said consumers have pulled back on spending, dinging the retail giant’s sales and profits during the period ended Oct. 29. Meanwhile,
Walmart Inc.
earlier this week reported stronger-than-expected sales for its latest quarter, an indicator that shoppers continue spending ahead of the holiday season, despite looking for deals.
The CFO change is expected to be seamless with Mr. Klinger having a more than two-decade-long tenure at TJX and Mr. Goldenberg staying on, said Aneesha Sherman, a senior analyst at investment-management firm
AllianceBernstein
LP. Looking ahead, Mr. Klinger will need to focus on margins and forecasting, she said.
Forecasting for the last two years has been “kind of a black box” at retailers including TJX, according to Ms. Sherman. This is because they’ve withheld key metrics such as the figures for comparable-store sales, since they weren’t meaningful as a result of store closures brought on by the pandemic, she said.
“For the last two years, it’s been very hard to plan and guide this business, and that’s going to get easier,” Ms. Sherman said.
Write to Jennifer Williams-Alvarez at [email protected] and Colin Kellaher at [email protected]
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