(Reuters) -TJX Cos Inc reported better-than-expected quarterly results on Wednesday as mass COVID-19 vaccinations and the easing of restrictions encouraged more Americans to shop at its brick-and-mortar stores.
Same-store sales rose by 16% at the chain’s outlets that remained open during the first quarter, compared with the level recorded in pre-pandemic fiscal 2020, driven by pent-up demand from U.S. customers who are flush with stimulus checks.
TJX said second-quarter comparable sales trends at its open outlets were similar to the previous quarter, signaling a rebound in the business of off-price stores that rely heavily on the treasure-hunt shopping experience they offer.
But the company’s shares fell about 4% in a lower overall market as it said temporary store closures in Canada and Europe due to government mandates would continue to weigh on its earnings in the second quarter.
The restrictions lowered TJX’s first-quarter sales by about $1.1 billion to $1.2 billion, which some analysts said was “worse than expected.”
In the current quarter, TJX forecast its Canadian and European stores to be shuttered for 17% and 7% of the period, respectively.
Its first-quarter overall net sales more than doubled to $10.09 billion, beating a Refinitiv IBES estimate of $8.62 billion.
TJX earned 44 cents per share in the quarter ended May 1, beating estimates of 31 cents.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Aditya Soni)
