Aug 19, 2021
T.J. Maxx owner receives sales boost as customers return to stores
Aug 19, 2021
TJX Cos Inc on Wednesday beat market estimates for quarterly net sales, as the easing of COVID-19 curbs prompted Americans to return to brick-and-mortar stores ahead of the reopening of schools.
Off-price retailers including TJX's T.J. Maxx and Burlington Stores weathered a tough 2020 when the pandemic accelerated a shift to e-commerce as the sector relies heavily on the treasure-hunt shopping experience it offers.
However, they have rebounded rather swiftly thanks to pent-up demand from U.S. customers who are armed with stimulus checks and child tax credit payments.
"Treasure-hunt shopping experience continued to draw customers into our stores around the world," TJX Chief Executive Officer Ernie Herrman said.
Open-only same-store sales at its Marmaxx U.S. division, which includes its U.S. T.J. Maxx and Marshalls stores, soared 18% from pre-pandemic levels two years ago, while its HomeGoods segment kept up its strong run during the health crisis, posting a 36% jump.
Big-box chain Target Corp also said apparel benefited from an early start to the back-to-school season in the second quarter.
Analysts have said that even apparel sellers that bought a lot of inventory have been left with several empty shelves as students have been splurging on new tops and trousers ahead of their return to brick-and-mortar schools and colleges.
TJX said open-only same-store sales for the start of the third quarter were up mid-teen percentage from the third quarter of fiscal 2020.
The company, however, stopped short of providing a financial forecast, citing uncertainty at a time when COVID-19 Delta variant cases are increasing across its markets.
Its second-quarter net sales rose 81% to $12.08 billion from a year earlier, above estimates of $11.04 billion. Excluding items, TJX earned 79 cents per share, beating Refinitiv IBES estimates of 57 cents.
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