T.J. Maxx parent misses sales estimates on coronavirus-led store closures

[February 24, 2021]  (Reuters) - Discount store operator TJX Cos Inc missed holiday-quarter sales estimates on Wednesday, as coronavirus-induced lockdowns in Europe and Canada pressured sales of non-essential products such as footwear and apparel, sending shares down 3%.

 A T.J. Maxx store which is owned by TJX Cos Inc in Pasadena, California U.S., May 15, 2017. REUTERS/Mario Anzuoni

Sales of retailers that sell discretionary items have remained pressured since the onset of the pandemic, as declining income among households have prompted people to cut their spending on dresses and suits.

A resurgence in COVID-19 cases and ensuing lockdowns also meant off-price chains, which bring in only a fraction of sales from their online channels and rely largely on the treasure hunt shopping experience, suffered yet another blow.

TJX estimated that temporary store closures in Europe and Canada negatively impacted its fourth-quarter sales by about $950 million to $1.05 billion.

Net sales fell to $10.94 billion in the quarter ended Jan. 30, from $12.21 billion a year earlier. Analysts had expected sales of $11.48 billion, according to IBES data from Refinitiv.

Net income fell to $325.5 million, or 27 cents per share, from $984.8 million, or 81 cents per share, a year earlier.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shounak Dasgupta and Amy Caren Daniel)

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