TJX Companies posts profit in Q3

The TJX Companies, Inc. has announced that net sales for the third quarter were 10.1 billion dollars, while overall open-only comp store sales were down 5 percent versus last year. The company said in a statement that net income for the quarter was 867 million dollars and diluted earnings per share were 71 cents versus 68 cents in the prior year. For the first two weeks of the fourth quarter, the company added that overall open-only comp store sales were down 7 percent.

Commenting on the trading results, Ernie Herrman, the company’s Chief Executive Officer and President said: “Our third quarter results significantly exceeded our plans on both the top and bottom lines as consumers were drawn to our compelling brands and values. All of our divisions drove sales above our plans, and our home, beauty, and activewear businesses outperformed at Marmaxx, TJX Canada, and TJX International. At HomeGoods, we delivered another quarter of double-digit open-only comp store sales growth.”

For the first nine months, net sales were 21.2 billion dollars, while net loss was 235 million dollars and loss per share was 20 cents, which the company said were negatively impacted by the temporary closure of its stores for approximately 27 percent of the first nine months of the year due to the Covid-19 global pandemic.

For the third quarter, the company’s consolidated pretax profit margin was 10 percent, a 0.7 percentage point decrease versus the prior year’s 10.7 percent. The company expects a quarterly dividend on its common stock of 26 cents per share to be declared in December 2020 and payable in March 2021. This, the company further said, would represent a 13 percent increase in the per share dividend compared to the company’s previous dividend paid in March of 2020.

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