The leading off-price retailer, TJX Companies, announced financial results for their second quarter, reporting net sales of $6.7 billion, well above their internal plans.
“For the quarter, we were very pleased that both our top and bottom lines well exceeded our internal plans, despite our stores only being open for a little more than two thirds of the second quarter, and that our merchandise margin was excellent. Further, we saw especially strong sales at our HomeGoods and Homesense chains, as well as the home departments within our other chains, across geographies. Specifically, HomeGoods delivered double-digit, open-only comp store sales increases each month of the quarter,” said Ernie Herrman, Chief Executive Officer and President of TJX Companies.
The company reopened more than 4,500 stores worldwide, and generated $3.4 billion of operating cash flow, ending their second quarter with $6.6 billion of cash. TJX Companies also paid off $1 billion that they drew from their revolving credit facilities in March 2020.
During their initial reopening, the retailer experienced strong sales across their brick-and-mortar stores. They believe this was due to pent-up consumer demand. TJX Companies saw an early wave of demand when they first reopened, just like many other retailers in the industry. The stronger-than-anticipated sales and traffic made a significant impact on the company’s recovery process.
“As to the future, we are confident that when more customers are comfortable with in-store shopping, we will be in a great position to continue gaining market share as we have for many years. We have been a trusted, value leader for more than 40 years, and we see a long runway of successful growth ahead for TJX,” added Herrman.
About TJX Companies, Inc.
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. As of August 1, 2020, the end of the Company’s second quarter, the Company operated a total of 4,557 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and four e-commerce sites. These include 1,271 T.J. Maxx, 1,134 Marshalls, 818 HomeGoods, 46 Sierra, and 34 Homesense stores, as well as tjmaxx.com, marshalls.com, and sierra.com in the United States; 279 Winners, 141 HomeSense, and 102 Marshalls stores in Canada; 597 T.K. Maxx and 78 Homesense stores, as well as tkmaxx.com, in Europe; and 57 T.K. Maxx stores in Australia. TJX’s press releases and financial information are available at TJX.com.