Almost all of their stores have reopened after COVID-19 shutdowns, however TJX Companies (NYSE: TJX) still struggling with the impact of the pandemic on its business.
The off-price retailer revealed on Wednesday that sales fell 31% over the months of May, June and July, mainly due to widespread closure of stores for about one-third of that time. That result represented an improvement in the 50% battle in the previous quarter and exceeded management expectations. “We are very pleased that both our top and bottom lines have well exceeded our internal plans,” CEO Ernie Herrman said in a press release.
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However, the specialization of apartments and household goods noted persistent challenges, including sluggish customer traffic and tight inventory and supply chains. These expenditures were sustained in the fiscal third quarter, management said, and are likely to hold sales declines in double-digit territory in Q3.
In addition, executives say they are confident that TJX Companies will be able to revisit its past record of stable market share growth. But visibility is particularly low over the coming quarters, given important questions about COVID-19 outbreaks, the after-school shopping season, government incentives legislation, and store shoppers’ behavior. As a result, the retailer refused to issue detailed guidance for the third quarter as well as for the critical holiday shopping season ahead.
