According to IBES data from Refinitiv, TJX, owner of off-price retailers TJ Maxx and Marshalls, expects current-quarter same-store sales to decline by up to 20 percent after reporting a bigger-than-expected loss for the previous three months, sending the off-price retailer's shares down about 7 percent. In the quarter, TJX's Marmaxx brand witnessed a 6 per cent decline in comparable sales at stores reopened, even as its HomeGoods chain, which sells furniture, rugs, tabletop and cookware, posted a 20 per cent increase.
Overall net sales slumped 32 per cent to $6.67 billion as stores were closed for nearly one-third of the quarter, but the numbers came in above estimates of $6.57 billion. Excluding items, it lost 18 cents per share in the second quarter ended Aug. 1, compared with market expectations of 10 cents per share,
The company anticipates slower back-to-school selling season, as more school districts rolled back their reopening plans. The retail chain also grappled with bringing shipments into its stores, particularly in Canada, due to virus-led supply and logistics issues that have gripped some retailers ever since the lockdown was imposed.
Though apparel brands are keeping their best merchandise for their own channels or have put their wholesale business on pause, TJX has increased its buying since mid-July to support the flow of inventory. The company said traffic and demand have moderated after a stronger-than-expected surge upon the reopening of its stores.
The Framingham, Massachusetts-based company has reopened nearly all of its 4,557 locations in nine countries.