TK Maxx owner hires new CFO as Q3 sales drop
Effective 29 January 2023, Klinger will oversee corporate finance at TJX. He will report to Scott Goldenberg, who will continue as the company's Senior Executive Vice President of Finance.
Klinger joined TJX in 2000 as a Manager of Business Analysis for Marmaxx. He has since held various financial positions with increasing responsibility at HomeGoods, Marmaxx and TJX Europe. Most recently, Klinger served as Executive Vice President, Corporate Controller at TJX.
The appointment coincides with TJX's results for the third quarter ending 29 October 2022.
The group's net sales decreased 3% to £10.2 billion ($12.2 billion) for the third quarter, but increased 2% to £29.8 billion ($35.4 billion) for the first nine months of FY23. TJX International reported a 16% drop in Q3 sales to £1.1 billion ($1.4 billion).
Net income for the third quarter was £926 million ($1.1 billion), whilst net income for the first nine months of FY23 was £2.1 billion ($2.5 billion).
The company increased its store count by 57 stores to a total of 4,793 stores and increased square footage by 1.0% over the previous quarter. In Europe, TK Maxx operates 629 stores and Homesense 78 stores.
Looking ahead, TJX now expects a pretax profit margin between 9.3% to 9.4% for the full year. For the fourth quarter, the company expects a pretax profit margin between 9.5% to 9.8%.
Ernie Herrman, CEO and President of TJX Companies, said: “I am very pleased with our third quarter performance. Looking forward, whilst not immune to macro factors, we are convinced that our flexible business model and value proposition will continue to be tremendous advantages, as they have been for more than four decades and through many kinds of retail and economic environments.
"Throughout the holiday season, we will be flowing fresh and enticing gift-giving assortments to our stores and online to appeal to our wide customer demographic, and we will be emphasising our value leadership in our marketing. We remain focused on our long-term vision to become an increasingly profitable, $60-billion-plus revenue company.”