TJ Maxx operator earnings lifted by U.S. reopening, Europe sales drag
Reuters
Published May 19, 2021 08:20AM ET
Updated May 19, 2021 11:01AM ET
(Reuters) -TJX Cos Inc reported better-than-expected quarterly results on Wednesday as mass COVID-19 vaccinations and the easing of restrictions encouraged more Americans to shop at its brick-and-mortar stores.
Same-store sales rose by 16% at the chain's outlets that remained open during the first quarter, compared with the level recorded in pre-pandemic fiscal 2020, driven by pent-up demand from U.S. customers who are flush with stimulus checks.
TJX (NYSE:TJX) said second-quarter comparable sales trends at its open outlets were similar to the previous quarter, signaling a rebound in the business of off-price stores that rely heavily on the treasure-hunt shopping experience they offer.
But the company's shares fell about 4% in a lower overall market as it said temporary store closures in Canada and Europe due to government mandates would continue to weigh on its earnings in the second quarter.
The restrictions lowered TJX's first-quarter sales by about $1.1 billion to $1.2 billion, which some analysts said was "worse than expected."
In the current quarter, TJX forecast its Canadian and European stores to be shuttered for 17% and 7% of the period, respectively.
Its first-quarter overall net sales more than doubled to $10.09 billion, beating a Refinitiv IBES estimate of $8.62 billion.
TJX earned 44 cents per share in the quarter ended May 1, beating estimates of 31 cents.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.