T.J. Maxx owner receives sales boost as customers return to stores

Reuters

Published Aug 18, 2021 07:42AM ET

Updated Aug 18, 2021 08:35AM ET

(Reuters) -TJX Cos Inc on Wednesday beat market estimates for quarterly net sales, as the easing of COVID-19 curbs prompted Americans to return to brick-and-mortar stores ahead of the reopening of schools.

Off-price retailers including TJX (NYSE:TJX)'s T.J. Maxx and Burlington Stores (NYSE:BURL) weathered a tough 2020 when the pandemic accelerated a shift to e-commerce as the sector relies heavily on the treasure-hunt shopping experience it offers.

However, they have rebounded rather swiftly thanks to pent-up demand from U.S. customers who are armed with stimulus checks and child tax credit payments.

"Treasure-hunt shopping experience continued to draw customers into our stores around the world," TJX Chief Executive Officer Ernie Herrman said.

Open-only same-store sales at its Marmaxx U.S. division, which includes its U.S. T.J. Maxx and Marshalls stores, soared 18% from pre-pandemic levels two years ago, while its HomeGoods segment kept up its strong run during the health crisis, posting a 36% jump.

Big-box chain Target Corp (NYSE:TGT) also said apparel benefited from an early start to the back-to-school season in the second quarter.

Analysts have said that even apparel sellers that bought a lot of inventory have been left with several empty shelves as students have been splurging on new tops and trousers ahead of their return to brick-and-mortar schools and colleges.

TJX said open-only same-store sales for the start of the third quarter were up mid-teen percentage from the third quarter of fiscal 2020.

The company, however, stopped short of providing a financial forecast, citing uncertainty at a time when COVID-19 Delta variant cases are increasing across its markets.