Off-price apparel and home fashion retailer The TJX Companies has posted a 6 per cent increase in sales for the first quarter, which an analyst described as “strong” results amid a more “frugal consumer economy”.

The company’s net sales for the three months ended May 4 were $12.5 billion, with comparable store sales increasing by 3 per cent.

Some of these uplifts continue to be driven by new consumers entering the off-price channel to save money, according to GlobalData MD Neil Saunders. “However, much is also down to strong assortments, which generate a ‘must-buy’ mentality when shoppers are in stores.”

At TJMaxx and Marshalls, sales rose by 5.2 per cent and by 2 per cent on a comparable basis, which were more modest than recent quarters. This might flag that the whole market is tightening and the segment’s growth will become more muted in the year ahead, Saunders explained.

Sales of HomeGoods were up 5.7 per cent, with comparable store sales up 4 per cent, reflecting that the company has bucked the trend of declining sales across the homewares and furniture sector, the analyst said.

International sales grew 8.1 per cent, partly driven by physical expansion and consumer’s increasing focus on value.

On the bottom line, TJX’s net income was $1.1 billion versus net income of $891 million in the prior-year period. For the full FY25, the company continues to expect comparable store sales growth of 2-3 per cent.

“Favorable tailwinds will continue to drive sales in the company’s favor, even if growth does soften. The current environment provides TJX with a chance to shine, and it is taking full advantage of it,” Saunders concluded.