TJX TJX Companies Inc

By Micah Maidenberg

TJX Cos. reported a smaller-than-expected sales decline for its latest quarter but still has several hundred stores closed due to coronavirus-pandemic-related restrictions.

The retail chain behind T.J. Maxx, HomeGoods and other stores on Wednesday said it earned a profit of $866.7 million, or 71 cents a share, for its quarter that ended Oct. 31, up from $828.3 million, or 68 cents a share, for the year-earlier period.

A smaller provision for income taxes bolstered results but selling, general and administrative costs were up in the quarter. TJX's profit beat forecasts from analysts.

Net sales slipped to $10.12 billion from $10.45 billion. Analysts had predicted $9.38 billion in sales for the latest period, according to FactSet.

Comparable sales slid 5%, a lesser fall than the 10% to 20% decline for that metric the Framingham, Mass.-based company had forecast in August.

"All of our divisions drove sales above our plans, and our home, beauty, and activewear businesses outperformed" in its international division and for stores in the U.S., Chief Executive Ernie Herrman said in a statement.

The company has about 470 stores that are temporarily closed due to government mandates, mostly in Europe. TJX also said inventories fell year over year to $5 billion, due in part to stronger sales and challenges with merchandise deliveries.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

November 18, 2020 08:03 ET (13:03 GMT)

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