In this edition of the Glossy+ Research Briefing, we analyze the impact Macy’s Inc.’s and TJX Companies’ beauty businesses had on their year-end sales, as seen in the companies’ Q4 2023 earnings reports.
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Increase in consumers seeking holiday deals boosts TJX’s Q4 earnings
Hot topic: Recent reporting from Glossy has highlighted the strategies off-price and discount retailers are employing, especially across their beauty aisles. A growing number of beauty brands have entered discount retail with products that have been overproduced or returned to the brand or distributor from a different retailer after not selling, are no longer seasonally relevant, are limited-edition, or have been reformulated and repackaged. Some beauty brands are also creating unique packaging specifically for discount retailers, such as new product bundles or sizes, to avoid alienating other retail partners selling at full MSRP.
Research dive: Yesterday, TJX Companies, which owns TJ Maxx, Marshalls and Homegoods, reported its Q4 2023 earnings, beating market expectations with strong holiday sales. Net sales for its core segment Marmaxx grew 5% in the quarter, which Reuters reports was driven by demand for cosmetics and skincare products.
Meanwhile, Macy’s Inc. reported in its Q4 2023 earnings that net sales dropped 1.7% compared to the same quarter in 2022. Although its signature brands Macy’s and Bloomingdale’s saw a dip in sales, the company reported strength in its beauty and off-price business. Bluemercury, Macy’s Inc.’s chain of beauty specialty stores, saw a 2.3% increase in sales on a 13-week basis.
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