TJX Profits Increase in Third Quarter To $866.7 Million; Home Products, Activewear & Beauty Driving Sales

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FRAMINGHAM – Framingham-based TJX Companies announced the company earned a profit of $866.7 million for the quarter that ended on Halloween.

That was up from $828.3 million from the previous quarter.

The Company’s CEO Ernie Herrman held a call with investors yesterday.

TJX reported a growth in home product sales, as many residents are home-bound across the nation due to the coronavirus pandemic.

The company also saw in increase activewear and in beauty products.

The Company’s lower tax rate in the third quarter of Fiscal 2021 resulted in an increase in earnings per share of approximately $.09 compared to the prior year.

The lower tax rate was primarily due to a true-up of the company’s year-to-date tax rate as well as the shifting of income and loss positions across the Company’s operating jurisdictions.

CEO & President Herrman said “Our third quarter results significantly exceeded our plans on both the top and bottom lines as consumers were drawn to our compelling brands and values. This is such a great testament to our global Associates. I am particularly proud of their dedication to our health and safety protocols for Associates and customers, and grateful to our store, distribution and fulfillment center Associates who are physically coming into work to keep our business open. All of our divisions drove sales above our plans, and our home, beauty, and activewear businesses outperformed at Marmaxx, TJX Canada, and TJX International. At HomeGoods, we delivered another quarter of double-digit open-only comp store sales growth.”

Net sales for TJX fell from $10.45 billion to $10.12 billion.

Herrman also announced a new e-commerce platform for HomeGoods in 2021.

“To both leverage our strength in the home category and capitalize on our market share growth opportunities, we are pleased to share that we plan to rollout e-commerce on HomeGoods.com later next year,” said Herrman.

“As we begin the fourth quarter, while significant uncertainty around COVID-19 remains, we are as focused as ever on bringing consumers exciting gift selections at excellent values. We plan to ship fresh assortments to our stores and online throughout the holiday selling season. Longer term, when we are past this health crisis, we are very confident that we will continue to gain more customers and drive the successful growth of TJX well into the future,” said the CEO.

TJX has its world-wide headquarters in Framingham.

During the third quarter ended October 31, TJX increased its store count by 17 stores to a total of 4,574 stores and increased square footage by 1% over the same period last year.

TTJX said it has approximately 470 stores that are temporarily closed due to local government mandates in response to the COVID-19 global pandemic. The vast majority of these stores are located in Europe. The Company’s tkmaxx.com e-commerce business in the U.K. remains open.

“For the first two weeks of the fourth quarter, overall open-only comp store sales were down 7%, similar to the trend the Company saw during the last week of October. Due to the increasing uncertainty of the current environment and the difficulty in forecasting the impact of the global pandemic on temporary store closures and consumer behavior, demand, and traffic, the Company is not providing guidance at this time,” it said in a press release.

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TJ Maxx Shoppers World By Kayleigh O’Connor

Photo by SOURCE intern Kayleigh O’Connor

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