What Happened
HomeGoods, a store brand owned by TJX Companies Inc., is a leader and well-known brand in the home décor and furnishings space.The retail brand ended the second quarter with 846 stores. Customers who do not live near a Home Goods or regularly frequent the stores now have the opportunity to shop online.
HomeGoods launched its online store in late September, a move that generated positive media coverage from outlets like Today.com and USA Today.
“We are thrilled to bring a second way for our passionate shoppers to discover and shop an assortment they know and love,” HomeGoods President John Ricciuti said.
HomeGoods follows the company’s other brands Marshalls and TJ Maxx, which launched online stores in 2019 and 2013 respectively.
Why It’s Important
The press coverage of HomeGoods likely brought good brand awareness to the retailer.Google searches for HomeGoods are elevated for this time of year compared to the past several years.
TJX Companies is one of several retailers that has rebounded from the sales decline seen during the COVID-19 pandemic.
The company beat consensus revenue targets for the first and second quarters of the current fiscal year, by 17 percent and 10 percent, respectively.
Second-quarter revenue of $12.1 billion was up 23 percent year-over-year. The company said its third quarter was off to a strong start with comp sales up in the mid-teens range. Second-quarter comp sales were up 20 percent year-over-year.
The company reported comp sales for TJMaxx and Marshalls stores up 18 percent year-over-year. Comp sales for HomeGoods stores were up 36 percent year-over-year.
Sales for TJMaxx were $7.35 billion for the second quarter, compared to $3.96 billion and $6.11 billion for the previous year’s second quarters. HomeGoods sales for the second quarter were $2.08 billion, compared to $1.24 billion and $1.43 billion for the previous two year’s second quarters.
“We see numerous opportunities to continue to gain market share and improve our profitability in the medium to long term,” TJX Companies CEO Ernie Herrman said about the second quarter.
The CEO added that the company has a long-term vision of hitting $60 billion in annual sales.
