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TJX forecasts annual sales growth, profit below estimates on muted consumer spending

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February 26, 2025

Off-price retailer TJX Cos on Wednesday forecast annual comparable sales growth and profit below Wall Street estimates amid concerns of muted consumer spending, even as it beat expectations for the crucial holiday quarter.

TK Maxx

TJX’s tepid forecast follows cautious annual projections from retailers, including behemoth Walmart and home improvement chains Home Depot and Lowe’s.

“Per usual, (TJX) followed up the (quarterly) beat with what we expect will be conservative guidance,” said BMO Capital Market analyst Simeon Siegel.

“We continue to believe TJX wins because they are becoming an increasingly important value option for consumers.”

U.S. customer spending has taken a hit from high interest rates and persistent inflation for two years. The uncertainties in the economy are exacerbated by President Donald Trump‘s new tariff on Chinese goods and proposed levies on some other countries.

However, executives at TJX — which sources its products globally, particularly from China, India and southeastern Asia — said direct imports from China are an “extremely small percentage” of its business, with a possibility for higher costs only in the short or medium term.

“Fiscal 2026 guidance assumes a small negative impact on the first half of the year from the current China tariffs on merchandise that we were committed to,” Chief Financial Officer John Klinger said on a post-earnings call.

Shares of the TJ Maxx parent were up nearly 4%, after it also announced a plan to repurchase shares worth $2 billion to $2.5 billion during fiscal 2026.

TJX expects comparable store sales to grow between 2% and 3% during fiscal 2026, compared with analysts’ average estimate of a 3.4% rise, according to data compiled by LSEG.

It forecast annual earnings per share of $4.34 to $4.43, compared with the estimate of $4.59.

Net sales of $16.35 billion for the quarter ended February 1 beat the estimate of $16.20 billion.

Its per-share profit of $1.23 was also above analysts’ expectation of $1.16.
 

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Primark to roll out Click & Collect to all UK stores by summer

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February 26, 2025

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February 26, 2025

Value fashion and lifestyle retail giant will complete rolling out its Click & Collect service to all 186 stores across the UK for summer, months ahead of schedule. Eighteen new stores are set to go C&C live from today (26 February) taking the total number of Primark stores to 131 across England and Wales, almost three-quarters of its UK estate.

And as the rollout continues, Primark said “thousands more products” will be available to shoppers for the first time, including women’s, men’s, kids and homewares, as well as the retailer’s new adaptive clothing range launched last month.

Although the retailer continues to avoid selling goods online, its customers can browse and order on its website before picking up their items in store from two days later.

Kari Rodgers, UK Retail director, said: “We know that our customers love the convenience that Click & Collect offers, as well as the opportunity to access ranges otherwise only found in larger stores. With the roll out now due to complete in time for summer we hope this will help make summer holiday shopping that little bit easier.”

Meanwhile, Primark said independent research conducted by Public First claims the retailer now contributes £2.6 billion to the UK economy and supports 54,000 jobs across the country.

Additionally, it said 2.3 million people cite Primark as the main reason for visiting their high street each week, with every £10 spent at a Primark store also generating an additional £3.60 for the high street. “This means Primark supports around £1 billion of spending in other stores and £500 million in restaurants each year”, it noted.

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Strathberry opens fourth store and second in hometown Edinburgh

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February 26, 2025

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February 26, 2025

Scottish “accessible luxury” brand Strathberry has opened its fourth store. The new Victoria Street, Edinburgh, store becomes the handbag-centric brand’s second location in the city, adding to its Multrees Walk store, which opened in 2020.

Embracing the listed property’s architectural features, the store also includes its Strathberry Lounge, decorated with a selection of curated books, decorative and locally sourced objects, “conveying a sense of home and warmth”.

Inspired by art and culture, Strathberry’s design features bespoke wall art as part of is ongoing collaboration with local Scottish artists and craftspeople. It includes local artist Hayley McCrirrick’s commission to create artwork inspired by the colourways of the brand’s signature styles.

Founded by husband-and-wife team Guy and Leeanne Hundleby in 2013, they describe the new store as “exuding a contemporary yet heartfelt charm” while complementing the original store on Multrees Walk and London stores on Burlington Arcade and in Covent Garden.

The expanding business, which is expected to deliver a new set of  accounts in April, has a track record for growing sales and profits. Accounts filed for the year ended last April showed an increase in turnover and rises in all measures of profit. Then, turnover increased to £26.88 million from £17.382 million in the previous 12 months. And despite the cost of sales increasing by almost £5 million and admin expenses rising by more than £2 million, gross profit was up to £15 million from £10.28 million and operating profit increased to just short of £3 million from £1.36 million.

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Steve Madden reports 15% revenue surge in 2024

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February 26, 2025

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February 26, 2025

American footwear brand Steve Madden announced on Wednesday a 15.2% increase in 2024 full-year revenue to $2,282.9 million, following a double-digit jump in wholesale revenues in the fourth quarter. 

Steve Madden reports 15% revenue surge in 2024. – Steve Madden

The Long Island City, New York-based company said fourth quarter revenue increased 12% to $582.3 million, backed by a 13.6% increase in its wholesale business. Wholesale footwear revenue increased 1%, while wholesale accessories and apparel revenue increased 35.4%. 

In the quarter, direct-to-consumer revenue was $176.0 million, an 8.4% increase compared to the fourth quarter of 2023, driven by increases in both the brick-and-mortar and e-commerce businesses.

Profit as a percentage of direct-to-consumer revenue was relatively flat at 62%, compared to 62.7% in the fourth quarter of 2023, driven by an increase in promotional activity.

“We are pleased to have delivered earnings results at the high end of our guidance range for the fourth quarter and full year 2024. For the year, revenue grew 15% and Adjusted diluted EPS increased 9% compared to 2023,” said Edward Rosenfeld, chairman and chief executive officer.

“Our strong performance in 2024 was driven by our team’s disciplined execution of our key strategic initiatives, with robust gains in international markets, non-footwear categories and direct-to-consumer channels, as well as a return to revenue growth in our U.S. wholesale footwear business.”

Earlier this month, Steve Madden announced plans to buy UK-based luxury brand Kurt Geiger in an all-cash deal valued at $360.09 million, expanding its presence in international markets.

For 2025, the company expects revenue will increase 17% to 19% compared to 2024. Diluted EPS is expected to be in the range of $2.30 to $2.40, assuming the Kurt Geiger acquisition closes on May 1, 2025.

“Looking ahead, we are cautious on the near-term outlook, as we face meaningful headwinds in 2025, most notably the impact of new tariffs on goods imported into the United States. That said, we have a proven ability to navigate difficult market conditions with our agile business model, and we are set to add a powerful new growth engine to the company with the pending acquisition of Kurt Geiger, which we expect to close in the second quarter of 2025,” added Rosenfeld.

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