On February 26, 2025, it was reported, TJX Cos.'s top line sales were flat in the fourth quarter, but comps were robust across the board and profit exceeded the company's plan. The multi-nameplate retail company also set a new bar for annual sales, surpassing $56 billion, and opened its 5,000th store during the year. "I am particularly pleased that our overall comp store sales growth of 5% for the quarter was due to strong increases in comp sales and customer transactions at every division," said Ernie Herrman, CEO and president of The TJX Companies. Net sales for the fourth quarter, ended Feb. 1, were $16.4 billion, flat from the prior-year quarter. Consolidated comparable store sales rose 5%. Traffic was the driver for comp gains in each retail division during the quarter. Marmaxx net sales slipped 1% to $9.97 billion, with comp up 4% on top of 5% increase in the year-ago period. HomeGoods U.S. sales increased 2% to $2.85 billion, with comp up 5% on top of a 7% increase in the year-ago period. TJX Canada sales declined 1%, with comp up a heady 10% on top of a 6% increase in the year-ago period. TJX International sales fell 1% to $2.07 billion, with comp up 7% on top of a 3% gain in the year-ago period. Gross profit margin was 30.5%, up 0.7 percentage points versus last year Q4 gross profit margin of 29.8%. Fourth quarter net income was up 1% to $1.4 billion, or $1.23 per share. For the full fiscal year, net sales increased 4% to $56.4 billion, with consolidated comp up 4%. Net income climbed 10% to $4.9 billion, or $4.26 per share.
On February 25, 2025, it was reported, Unlike rivals, the Southern department store enjoyed higher traffic to stores last year, but joins them in losing share to value players. Dillard's hasn't struggled as much as other U.S. department stores but is nevertheless vulnerable to the challenges facing the model. Courtesy of Dillard's Dillard's total Q4 retail sales (excluding its construction business) dropped more than 5% compared to last year, when there was an extra week. Adjusting for that, retail sales fell 1% to $1.9 billion, with store comps also down 1%. Men's apparel, accessories and shoes were especially weak performers. Retail gross margin contracted to 36.1% from 37.7% a year ago, with flat margins in juniors' and children's apparel, ladies' accessories and lingerie. Gross margin fell slightly in shoes, cosmetics and men's apparel and accessories, and significantly in home, furniture and ladies' apparel. Net income fell more than 14% to $214.4 million. For the year, total retail sales reached $6.2 billion; comparing 52-week periods in 2023 and 2024, they fell 2%. Retail gross margin shrank slightly from 41.8% to 41%, while net income plummeted nearly 20% to $593.5 million. Thanks to its strong merchandising, good customer service and rational footprint, Dillard's is considered by many analysts to be a standout among department stores. Recent declines in sales and margins prove that Dillard's is not immune to the downturn in the space, however, analysts said. Dillard's CEO William Dillard said in a statement that, given the sales challenges, the company had worked to control its expenses in the period but acknowledged it "lost some steam in gross margin."
On February 25, 2025, it was reported, soon after it announced a major restructuring effort and layoffs, RTA furniture specialist Dorel Inds. entered into a sale-leaseback transaction for its plant and warehouse in Columbus, Ind. The company says it's in "serious financial difficulty" and that this transaction will help it reduce debt, finance the growth of its Juvenile segment and turn around its furniture segment, which has seen steady quarterly losses for more than two years. Gross proceeds from the sale will be $30 million, of which $8 million will be used to pay down debt. As of last quarter, the company's debt amounts to around $400 million. The company's owners and directors Martin Schwartz, Jeffrey Schwartz, Jeff Segel and Alan Schwartz are named in the release as purchasers/lessors of the facility. The lease has an initial term of 10 years and may be renewed by Dorel for two renewal terms of five years each. The initial annual rent is $2.9 million, subject to annual increases. The obligations of the lessee, Dorel Juvenile, "are not guaranteed by parent company Dorel Inds.," the company wrote. Dorel said it will file a material change report with respect to the transaction on SEDAR+, a Canadian database for organizations to submit financial documents. The company said it will not file the material change report at least 21 days before the closing date of the transaction "as the terms and conditions of the transaction were only recently finalized." It believes a shorter period is necessary for the transaction to close more quickly.
On February 24, 2025, it was reported, Joann will shut down all of its stores, pending court approval, the company said in a Sunday statement. The move follows a bankruptcy auction in which the winners, GA Group and the retailer's lenders, said they will initiate going out of business sales at all locations. Court documents show GA Group and the lenders will offer cash consideration to pay Joann's lenders in full. The retailer reported $615.7 million in debt in January. The winning bidders will also offer an additional $105 million credit bid for most of the company's assets. Joann stores will likely disappear from the physical retail landscape after two bankruptcies in 10 months, bringing an end to 82 years of retail operations. A sale approval hearing is scheduled for Wednesday in U.S. bankruptcy court for the District of Delaware. The craft and sewing retailer first filed for Chapter 11 in March 2024 and concluded the process about a month later. Under that restructuring, the court allowed Joann to write off over $500 million of the company's nearly $1.1 billion in debt. The company kept all of its 800-plus stores open, retained the jobs of about 18,000 employees with the aid of $132 million from its lenders, and went private. Founded in 1943 by German immigrants, the Ohio-based company had grown to 500 stores by 1980. In 2024, Joann's net sales reached $2 billion, most of which was in the arts, crafts and home decor categories, with the balance in sewing and non-merchandise services.
