FRAMINGHAM, Mass. — The TJX Cos., a leading off-price apparel and home fashion retailer, brought in sales of $10.1 billion for the third quarter of its fiscal year 2021 ended Oct. 31, a decline of 3.2% year over year.
The company’s net income came in at $866.7 million for the period, an increase of 4.6% over the same period last year. Diluted earnings per share were 71 cents for the third quarter, up from 68 cents per share a year ago.
Ernie Herrman, CEO and president of TJX Cos., said the results for the quarter exceeded the company’s plans on both the top and bottom lines, with a special nod to the home category.
“All of our divisions drove sales above our plans, and our home, beauty, and activewear businesses outperformed at Marmaxx, TJX Canada and TJX International,” said Herrman. “At HomeGoods, we delivered another quarter of double-digit open-only comp store sales growth.
“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.”
He noted that the company is looking to a strong holiday season and beyond. “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.”
For the third quarter of Fiscal 2021, the company’s consolidated pretax profit margin was 10.0%, a 0.7 percentage point decrease vs. the prior year’s 10.7%. The company’s strong merchandise margin increase was more than offset by significant operating costs related to COVID-19 and expense deleverage on the year-over-year sales decline.
TJX currently has about 470 stores that are still temporarily closed, primarily in Europe, due to government COVID-19-related mandates. Its tkmaxx.com e-commerce business in the U.K. remains open.
Because of these closures, TJX says its historical definition of comp store sales is not applicable. Instead, the company is temporarily reporting open-only comp store sales. Overall, this metric decreased 5% in Q3 FY2021, which the company says is well about its plans for the period.
For the first two weeks of TJX’s fourth quarter, overall open-only comp store sales were down 7%. Due to the increasing uncertainty of the current environment and issues related to the impact of the global pandemic, TJX is not providing guidance at this time.