HomeGoods Including E-Commerce As Banner Drives TJX Q3

TJX did better than expected in the third quarter, Home claimed, as HomeGoods did particularly well and the parent company took steps to launch a dedicated e-commerce operation for the banner. Digital sales at homegoods.com will begin next year.

For the third quarter, net income was $ 866.7 million, or 71 cents per diluted share, compared to $ 828.3 million, or 68 cents per diluted share, for the same period last year. A consensus estimate of the analysts published by MarketBeat called for earnings per diluted share of 40 cents for the third quarter.

Like-for-like store sales were down 5% year over year for the quarter, with the Marmaxx division, including TJ Maxx and Marshalls, down 10%, HomeGoods down 15%, TJX Canada down 7%, and TJX International down 6%.

Due to store closures in the COVID-19 pandemic, TJX found that the company changed the way it calculates comparable store sales by using a metric known as Comp store-only sales. This includes stores that were originally classified as Comp stores at the beginning of the current financial year and that had to be temporarily closed due to the pandemic. The metric shows the increase or decrease in sales of the stores on the days on which they were open in the quarter compared to sales on the same days in the previous year.

Net sales were $ 10.12 billion compared to $ 10.45 billion for the year-ago quarter.

Ernie Herrman, President and CEO of TJX, said: “Our third quarter results have significantly outperformed our plans for both profit and profit as consumers have been drawn to our compelling brands and values. This is great evidence of our global workforce. I’m especially proud of their dedication to our health and safety protocols for employees and customers, and grateful for our store, sales and fulfillment center staff who physically come to work to keep our business open. All of our businesses grew sales beyond our plans, and our home, beauty and active apparel businesses performed better at Marmaxx, TJX Canada and TJX International. At HomeGoods, we achieved a further quarter of the double-digit sales growth in the Open-Only-Comp-Store. To capitalize on both our strength in the Home category and our market share growth opportunities, we are pleased to announce that we plan to roll out e-commerce on HomeGoods.com later next year. As the fourth quarter begins, our focus remains on offering consumers an exciting range of gifts at great prices, although significant uncertainties regarding COVID-19 remain. We plan to deliver fresh assortments to our stores and online during the Christmas season. In the long term, when we have this health crisis behind us, we are very confident that we will continue to gain more customers and continue to drive TJX’s successful growth in the future. “