TJX revenue up 20% over pre-pandemic level as HomeGoods continues to soar
The TJX Cos. reported revenue and earnings that beat analysts’ expectations as comp-sales rose across all its brands, with Home Goods the star of the show.
The parent company of T.J.Maxx, Marshalls, Home Goods, Sierra, Homesense and other banners reported that its net income totaled $1.02 billion, or $0.84 per share, in the quarter ended Oct. 30, up from $866.7 million, or $0.71 per share, in the year-ago period. Analysts had expected earnings per share of $0.81.
Net sales totaled $12.5 billion, up 24% from the year-ago period. Net sales increased 20% versus the third quarter of pre-pandemic 2020. During the quarter some of the company's stores in Australia were closed due to the pandemic resulting in about $30 million to $40 million in estimated lost sales. (Currently, no TJX stores are closed due to COVID.)
Overall open-only comp-store sales rose 14% compared to the pre-pandemic period. (Open-only comp-store sales measures sales growth or decline at stores open for the same days in fiscal 2020, before COVID.)
By brand, comp-store sales increased 34% at Home Goods, 11% at Marmaxx (U.S.), 8% at TJX Canada and 10% at TJX International. At the end of September, HomeGoods launched its first-ever e-commerce site.
“We saw robust trends throughout the quarter, with comp sales exiting the quarter as strong as the beginning of the quarter," said CEO Ernie Herrman. "Further, our home businesses across all of our divisions continued their phenomenal performance, and overall apparel open-only comp-store sales increased mid-single digits."
Total inventories as of the end of the third quarter were $6.6 billion, up from $6.3 billion in fiscal 2020. The company is “extremely well-positioned” for the holiday selling season, according to Herrman.
"We are in an excellent inventory position, with most of the product needed for the holiday season either on hand or scheduled to arrive at our stores and online in time for the holidays," he said.
Herrman added that early fourth-quarter overall open-only comp-store sales are up in the mid-teens.
As of October 30, the company operated a total of 4,684 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and five e-commerce sites. These include 1,285 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 55 Sierra, 39 HomeSense stores and related e-commerce sites in the United States; 292 Winners, 147 HomeSense, and 106 Marshalls stores in Canada; 618 T.K. Maxx and 78 HomeSense stores in Europe; and 66 T.K. Maxx stores in Australia.