TJ Maxx expects sales dips as off-price retailers struggle in pandemic - Business Insider

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TJ Maxx owner expects sales to drop upwards of 20% this quarter, as off-price retailers struggle to bring in shoppers and offload extra inventory

TJX Companies — parent company of TJ Maxx, HomeGoods, and Marshalls — warned investors on Wednesday of the challenges its brands will face in the latter half of 2020 thanks to the coronavirus pandemic.

TJX reported an overall same-store sales decline of 3% in the second quarter, attributing the decline largely to temporary store closures early on in the pandemic. Overall company sales of $6.6 billion topped analyst estimates, in part because ofafter stay-at-home mandates were lifted around the country.

Coincidentally, the company has also been saddled with a significant surplus of inventory that has been difficult to offload, prompting periods of additional mark downs and slashing of prices"We took significantly more markdowns than we normally would at this time of year," Herrman said during the call.

 

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