Off-price retailers neutralize tariff impact
Yahoo Finance·2025-12-08 09:00

Core Insights - The three major off-price chains in the U.S. successfully mitigated the impact of new tariffs imposed by the Trump administration in Q3, a feat not commonly achieved by other retailers this year [1][2]. Company Performance - TJX Companies: - Achieved a gross margin increase of 1 percentage point to 32.6% and a net income rise of 11% to $1.4 billion in Q3. - Overall net sales increased by 7% year over year to over $15 billion, with comparable store sales at Marmaxx rising by 6% and at U.S. HomeGoods by 5% [3][4]. - Ross Stores: - Sales grew by 10% year over year to $5.6 billion, with comparable store sales up by 7%. - Operating margin decreased by 35 basis points to 11.6% due to tariff impacts, although the company managed to partially offset these costs through opportunistic buys and an increase in name brands [5]. - Burlington Stores: - Total sales rose by 7% from last year to $2.7 billion, with comparable store sales increasing by 1%. - Despite mixed results, gross margin expanded by 30 basis points to 44.2%, and merchandise margin increased by 10 basis points [6].