A leading home decor and furniture retailer is improving its game with the rollout of online shopping. Could this increase income and the share price?
What Happened: Household Items, a store brand owned by TJX Companies Inc (NYSE: TJX), is a leading and well-known brand in interior design and furnishings.
The banner ended the second quarter with 846 stores. Customers who do not live near a Home Goods or who regularly visit stores now have the option of shopping online.
HomeGoods launched its online store in late September, an initiative that generated positive media coverage from outlets like Today.com and USA Today.
“We’re excited to provide a second way for our passionate buyers to discover and purchase an assortment they know and love”, President of HomeGoods Jean Ricciuti noted.
HomeGoods follows the company’s other brands Marshals and TJ Maxx, which launched online stores in 2019 and 2013 respectively.
The company said the HomeGoods website has more than 2,000 items for sale and will be updated frequently with “new finds.”
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Why this is important: HomeGoods’ media coverage likely brought good brand awareness to the retailer.
Google searches for HomeGoods are high for this time of year compared to recent years.
TJX Companies is one of many retailers that have rebounded from the sales decline seen during the COVID-19 pandemic.
The company exceeded consensus revenue targets for the first and second quarters of the current fiscal year, by 17% and 10%, respectively.
Second-quarter revenue of $ 12.1 billion increased 23% year-on-year. The company said its third quarter got off to a good start with sales of compositions rising in the teen range. Sales of compositions in the second quarter increased 20% year-on-year.
The company said model sales for TJMaxx and Marshalls stores were up 18% year-over-year. HomeGoods store sales increased 36% year-on-year.
TJMaxx sales were $ 7.35 billion for the second quarter, compared to $ 3.96 billion and $ 6.11 billion for the second quarters of the previous year. HomeGoods sales for the second quarter were $ 2.08 billion, compared to $ 1.24 billion and $ 1.43 billion for the second quarters of the previous two years.
“We see many opportunities to continue to gain market share and improve our profitability in the medium to long term,” said the CEO of TJX Companies. Ernie Hermann said about the second trimester.
The CEO added that the company has a long-term vision of reaching $ 60 billion in annual sales.
TJX companies are expected to release their third quarter results in November. Last year, the company reported third quarter revenue of $ 9.36 billion.
Price action: TJX shares closed at $ 64.35 at the time of writing on Friday. The shares are near the midpoint of their 52-week range of $ 50.06 to $ 76.16.
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