TJX Cos. amplifies dwelling ambitions

Framingham, Mass. – Dwelling as a proportion of whole gross sales jumped 21% final yr at TJX Cos., and the corporate sees extra market share alternative on the horizon.

Dwelling accounted for practically 40% of gross sales within the latest fiscal yr, up from 33% in 2019. With that in thoughts, CEO and president Ernie Herrman introduced a brand new long-term goal for HomeGoods shops within the U.S.: 1,500 items – up roughly 100 doorways from the earlier estimate. The nameplate stays on monitor to launch e-commerce later this yr and at present operates 821 shops.

“We really feel like there’s far more market share alternative as we transfer ahead,” Hermann informed analysts through the firm’s quarterly name.

The Dwelling Sense division will open 5 U.S. shops this yr. “Comps are even larger at Dwelling Sense than they’ve been at Dwelling Items,” mentioned Scott Goldenberg, senior EVP and CFO for TJX Cos. “Common retail and common basket have been sturdy.”

For the fourth quarter ended Jan. 30, gross sales efficiency by division included:

HomeGoods: Gross sales up 14.0% to $1.25 billion, with comp up 12%

Marmaxx U.S.: Gross sales down 6.5% to $6.92 billion, with comp down 7%

TJX Canada: Gross sales down 26.3% to $837 million

TJX Intl (Europe and Australia): Gross sales down 44% to $961 million

NOTE: Comp comparisons are measured solely utilizing shops that had been open in This autumn and the year-earlier interval. It doesn’t embrace e-commerce.

Due to COVID-19 authorities restrictions, shops in Europe had been closed for two-thirds of This autumn and shops in Canada had been shuttered for roughly one-third of the interval, executives mentioned. The corporate estimated the closures could have resulted in roughly $950 million to $1.05 billion in misplaced gross sales.

Complete firm gross sales for fourth quarter fell 10.7% to $10.9 billion, with open-only comp down 3%. Web earnings tumbled 67.0% to $326 million, or $0.27 per diluted share.

 

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