Discount apparel and home goods retailer The TJX Companies missed analysts’ expectations in its fiscal 2022 fourth-quarter and full-year earnings, in part because of the spread of the omicron variant of the COVID-19 pandemic causing store closures, according to the company’s announcement Wednesday (Feb. 23).
TJX’s share price was down almost 7% in early trading Wednesday.
Even as many of its stores were closed for at least part of the three-month period during the holiday shopping season, TJX grew its overall store count by 117 to a total of 4,689 locations across its brands — TJX, Home Goods and Marshalls — and saw a 2% increase in square footage year-over-year.
The TJX Companies’ stores that remained open during the year performed well, with U.S. open-only comparable store sales up 17% from fiscal 2020. The fiscal year also saw net sales of $48.5 billion, up 16% from two years ago and up 51% from last year.
Net sales for the fourth quarter of fiscal 2022 were $13.9 billion, up 27% from the fourth quarter of fiscal 2021, when stores were closed for about 13% of the three-month period.
“Our global organization worked together as ‘One TJX,’ and thanks to their dedication and talent, we delivered excellent results in 2021,” said Ernie Herrman, CEO and president of The TJX Companies, Inc., in the company announcement.
Herrman was especially proud of TJX’s performance during the holiday season and said he sees the company reaching $60 billion in annual sales before too long.
“Our shoppers responded to our amazing brands, excellent values, and inspiring treasure hunt shopping experience,” he said. “While freight and wage cost pressures remain elevated, we are pleased that our retail pricing strategy is working very well. This gives us confidence in improving our profitability when the macro environment normalizes, while continuing to offer exceptional values to customers every day.”
Off-price home décor chain HomeGoods became the final piece of the TJX Companies to shift into eCommerce in September. Herrman has said that eCommerce will “leverage our strength in the home category and capitalize on our market share growth opportunities.”
In his fiscal 2022 overview, Herrman didn’t mention how the growth in comparable store sales affected online sales for TJX’s brands.