TJX Companies (TJX), a retail brand owner, has increased sales during COVID-19 as consumers cut back on discretionary spending by restaurants, travel, and more. This resulted in TJX receiving some of this money, and the chain expects future growth.
In fiscal 2021’s second quarter (ended May 1), sales of TJX grew by 129 % year-over-year to $ 10.1 billion. The growth rate compared with the first quarter was 9%.
One of the fastest-growing segments was household goods (+ 40%, to $2.1 billion). In self-isolation, many people have embarked on repairs and home improvements that continue. Additionally, clothing sales have increased by 14 %.
Overall, TJX Companies (NYSE: TJX), US stores for the quarter rose 22 % to $ 8.8 billion. As a result of COVID-19 restrictions in Canada and Europe, TJX could not expand as a physical retailer. Since most of TJX’s European stores are already open, it anticipates increased sales in the current quarter.
Hence, the chain of stores managed to overcome the crisis despite losing about $ 1.2 billion in quarterly sales due to the epidemic. As vaccination progresses rapidly in TJX’s main markets, the company should be expected to return to normal operations in the next two quarters.
At the end of the last trading session, TJX Companies Inc. closed at $67.37, down -0.01%. Its shares ranged in price from $66.87 to $68.75. 11.98 million shares traded, which exceeded its average daily volume of 6.44 million shares over 100 days. TJX’s shares have dropped by -4.98% in the last five days, and -1.62% in the last month. The company has a current dividend yield of 1.54%. Further, it is currently trading at a price-to-earnings ratio of 1295.58 and a price to book ratio of 13.89. Additionally, the price to cash flow ratio stood at 21.40.