TJX (TJX) which owns TJ Maxx, HomeGoods, Marshalls, etc., has recently seen a surge in sales and is confident it will be able to maintain that momentum even if President-elect Donald Trump adopts a policy that some retailers say will have a negative impact. the wallet of their consumers.

In TJX’s third-quarter 2024 earnings report, the company said overall same-store sales increased 3% year over year.

Don’t miss the move: SUBSCRIBE to TheStreet’s FREE daily newsletter

Specifically, Marshalls, TJ Maxx and Sierra combined increased their U.S. comparable sales by 3% compared to the same period last year. Additionally, U.S. same-store sales of HomeGoods and HomeSense increased 3% year-over-year.

Related: Target Reports Surprising Customer Behavior Ahead of the Holidays

The sales growth contributed to TJX’s net income of nearly $1.3 billion, or $1.14 per share, in the quarter, up 11% from what it earned in the quarter. of the same quarter in 2023.

As TJX sees an increase in sales, it says Trump’s proposed tariffs, which include 60 to 100 percent on all products from China and 10 to 20 percent on products imported from all other countries, will actually help its stores to prosper.

Tariffs are fees that businesses typically pay to import goods from abroad, and often the additional costs are passed on to consumers, resulting in higher prices for goods/services.

A clearance rack showing labels at a TJ Maxx store.

Puce Somodevilla/Getty Images

During a recent earnings conference call, TJX CEO Ernie Herrman said the company imports a “very small portion” of its products from overseas.

“Most of our inventory is purchased from brands,” Herman said on the call. “So we don’t even have visibility on the origin of these goods.”

TJ Maxx, HomeGoods, Marshalls and other TJX stores rely primarily on brands with excess inventory and other supply chain disruptions in order to sell merchandise at 20-60% less than their full price .

Related: Lowe’s Sounds Alarm on Growing Problem

Herman said the proposed tariffs could push his manufacturers to order their products in bulk from the start, to avoid paying the additional tax once it is officially imposed. He says this could create “additional availability of goods at advantageous prices” for TJX businesses.

“When there’s a little bit of chaos in the market, if it happens a little bit in certain categories, at the end of the day it’s usually an opportunity for us,” Herman said.

Some retailers recently warned their consumers that Trump’s proposed tariffs could force them to raise prices.

The story continues

For example, Walmart (WMT) Chief Financial Officer John Rainey issued this warning to buyers during a recent interview with Liz Claman of Fox Business on November 21.

“The rates are going to be inflationary. There’s no doubt about that,” Rainey said in the interview. “It is likely that consumers will pay more for the items they pay for and have these rates applied to.”

More Retail:

Auto Parts Retailer AutoZone (AZO) also warned investors last week that its customers would foot the bill for Trump’s tariffs.

Shoe retailer Steve Madden (TO PULL) also recently announced that it would reduce its purchases of Chinese-made shoes by 40 to 45 percent to avoid Trump’s proposed tariffs.

Former President Donald Trump speaks during a news conference at his Mar-a-Lago estate August 8, 2024, in Palm Beach, Florida.

Joe Raedle/Getty Images

“We’re looking at a potential scenario where we would have to move goods out of China more quickly,” Edward Rosenfeld, CEO of Steve Madden, said during the company’s Nov. 7 earnings conference call.

“We have worked hard for several years to expand our factory base and supply capacity to other countries like Cambodia, Vietnam, Mexico, Brazil, etc. And so as of yesterday morning, we’ve been putting this plan into action, and you We should expect to see the percentage of goods that we source from China start to decline more rapidly in the future.

During a interview With John Micklethwait, editor-in-chief of Bloomberg News in October, Trump said he was proposing the tariffs in an effort to boost business in the United States.

“The higher the tariffs, the more likely it is that the company will come to the United States and build a factory,” Trump said.

Related: Veteran Fund Manager Predicts a World of Pain for Stocks