TJX Companies, the parent company of TK Maxx, has reported a 10.7% drop in FY21 net sales to $32.1bn (£22.6bn), which it revealed reflects the “negative impact of temporary store closures for approximately 24% of the year”.
The retail group, which also operates the Marmaxx and HomeGoods brands in the US and TJX Canada, said that for the year ending January 30 2021, overall open-only comp store sales were down just 4% compared with the previous year, however.
The full-year results come after it revealed that in Q4, its net sales amounted to $10.9bn (£7.6bn), with net income also down to $326m (£230m).
Although the company’s stores in the US were generally open the entire fourth quarter, TKX revealed its stores in Europe were closed for approximately 63% of the fourth quarter and stores in Canada were closed for about 32% of the quarter.
In total, the company said it had stores closed for approximately 13% of the fourth quarter due to the Covid-19 global pandemic.
It estimates that the European and Canadian closures may have resulted in approximately $950m (£670m) to $1.05( £741m) in lost sales during the fourth quarter of the year.
Ernie Herrman, CEO and president of The TJX Companies: said: “I want to give special recognition to our store, distribution, and fulfillment center Associates who have been physically coming in to work to keep our business open. I could not be prouder of our teams around the world who achieved monumental tasks in the face of a global pandemic in 2020.
“In terms of the business results, I am very pleased that our fourth quarter open-only comp store sales were down only 3%, exceeding our plans. Our brands, values, and exciting gift assortments resonated with customers, and we achieved these results despite numerous Covid-related headwinds. Overall open-only comp store sales improved each month of the quarter and were positive in January.”
He added: “Further, open-only comp store sales exceeded our plans across each of our divisions, including at HomeGoods which once again delivered a double-digit increase. We also saw continued strength in our home and beauty departments. As we start the new fiscal year, while uncertainty around Covid-19 remains, we feel very good about the strength of the business and our market share opportunities beyond the health crisis.
“We are convinced that our entertaining, treasure hunt shopping experience, our differentiated, branded merchandise selections, and value proposition will continue to resonate with consumers. We see many opportunities to leverage our flexible business model, gain more customers, and continue driving the successful growth of TJX for many years ahead.”