TJX did better than it thought it might in the third quarter, the company maintained, as HomeGoods performed particularly well and as the parent began taking 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, versus $828.3 million, or 68 cents per diluted share, in the period a year earlier. An analyst consensus estimate published by MarketBeat called for third quarter earnings per diluted share of 40 cents.
Comparable store sales declined 5% in the quarter year over year, the company reported, with the Marmaxx division, including T.J. Maxx and Marshalls, down 10%, HomeGoods up 15%, TJX Canada down 7% and TJX International down 6%.
Because of store closings in the COVID-19 pandemic, TJX noted that it altered how the company calculates comparable store sales using a measure it calls open-only comp store sales. This includes stores initially classified as comp stores at the beginning of the current fiscal year that have had to temporarily close due to the pandemic. The measure reports the sales increase or decrease of the stores covered for the days they were open in the quarter versus sales for the same days in the prior year.
Net sales were $10.12 billion versus $10.45 billion in the quarter a year previous.
Ernie Herrman, TJX president and CEO, 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. 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. 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.”