TJX Cos Inc, the parent company of popular discount retailers like T.J. Maxx and Marshalls, has recently announced that it predicts a decrease in same-store sales for the current quarter, with a potential decline of up to 20%. This news comes after the company reported a larger loss than anticipated for the previous three months, resulting in a roughly 7% drop in its stock price.

Similar to other retailers including Kohl’s and Walmart, TJX attributes this decline to the ongoing impact of the COVID-19 pandemic. The back-to-school season is expected to be slower this year as many school districts have scaled back their reopening plans. In addition, TJX has faced challenges in getting shipments into its stores, especially in Canada, due to supply chain and logistical issues caused by the virus and associated lockdown measures.

Furthermore, several apparel brands have decided to focus on their own direct sales channels or have temporarily halted their wholesale business due to disruptions in the supply chain. This has resulted in department stores and off-price retailers like TJX relying more on other product categories.

Despite these obstacles, TJX remains optimistic and has increased its purchasing efforts since mid-July in order to maintain a steady inventory flow. The company has reopened almost all of its 4,557 stores across nine countries. However, it anticipates a decline in customer traffic and demand compared to the initial surge it experienced when stores first reopened.

During this quarter, TJX’s Marmaxx brand, which includes T.J. Maxx and Marshalls stores, saw a 6% decrease in comparable sales at its reopened locations. On the other hand, its HomeGoods chain, which specializes in furniture, rugs, tabletop, and cookware, experienced a 20% increase in comparable sales.

Overall, the company reported a 32% decrease in net sales, totaling $6.67 billion, primarily due to the temporary closure of its stores for approximately one-third of the quarter. However, these figures exceeded market estimates of $6.57 billion.

On an adjusted basis, excluding certain items, TJX reported a loss of 18 cents per share for the second quarter ending on August 1. This was higher than the market’s expectation of a loss of 10 cents per share.

In conclusion, TJX Cos Inc, like many other retailers, has been significantly affected by the COVID-19 pandemic. Although the company anticipates a decline in same-store sales for the current quarter, it remains hopeful as it continues to reopen stores and increases its purchasing efforts to maintain inventory levels.

For more information on TJX Cos Inc’s recent performance, please visit:
TJX Cos Inc Investors Page
Reuters Article on TJX Cos Inc’s Results