On TJX Cos.’ second-quarter analyst call, Ernie Herrman, CEO, said TJX increased its long-term store-opening targets while indicating its Sierra outdoor-themed off-price concept will continue to contribute “disproportionately” to those expansion efforts.
The company increased its overall long-term store growth potential by 500 stores to a total of 7,500 stores, or over 2,200 more stores within its existing retail banners inside its current 10 countries. Banners include TJ Maxx, Marshalls, Sierra, HomeGoods and Homesense stores in the U.S,; Winners, HomeSense, and Marshalls in Canada; and TK Maxx and Homesense in Europe.
Herrman said the expansion now reflects the long-term potential for T.J. Maxx and Marshalls banners to expand an additional 300 stores to a combined 3,300 stores and for the HomeGoods division to expand an additional 200 stores to 2,000 stores.
He added, “Further, we are planning to accelerate our store openings to 4 percent starting next year to take advantage of the growth opportunities we see out there. I want to assure you that we are extremely confident that there will be plenty of quality merchandise available to us to support our growth plans.”
Specifically asked about the expansion potential of Sierra and also Homesense by an analyst on the call, Herrman said both will add “disproportionately into the growth.” He added, “Those are both well above 4 percent growth because they’re both doing well.”
TJX, which acquired Sierra in 2012, has ramped up its outdoor concept expansion in recent years, opening 28 Sierra stores in 2025, 22 in 2024, 17 in 2023, and 19 in 2022. Eleven Sierra locations were opened in the first half to close the second quarter with 156.
TJX Cos. Inc. raised its EPS guidance for the year as second-quarter results topped guidance. Same-store sales grew 4 percent in the quarter as below-plan results at its Marmaxx segment (TJ Maxx, Marshalls, and Sierra) were offset by strength at HomeGoods, TJX Canada, and TJX International.
On the call, Herrman said the below-plan results at Marmaxx, which includes TJ Maxx, Marshalls and Sierra in the U.S., reflected internal merchandising mistakes and sales trends have improved early in the third quarter.
He said, “At Marmaxx, we believe we could have executed our store mix better. And by that, I mean, we could have been sharper on having the right goods in the right stores at the right time. We are convinced that the issues were self-inflicted and within our control, and we have made good progress working through them. We are seeing improvement at Marmaxx to start the third quarter and are confident that we will see greater improvement by the holiday selling season.”
He also inferred the Sierra chain continued to perform well in the second quarter. Herrman said, “We delivered another good quarter of sales performance at our Sierra stores as we continue to grow this chain across the U.S.”
Image courtesy TJX Cos.
