TJX (TJX), the owner of TJMaxx and Marshalls, said Wednesday that sales dropped during the holiday stretch as fewer consumers picked up clothes.
Sales at TJMaxx and Marshalls stores in the United States open for at least a year dropped 7% during the thirteen weeks ending January 30 compared with the same stretch last year.
Sales took a steeper fall in Europe and Canada, where some stores were temporarily closed last quarter because of the pandemic. TJX estimated these closures this took nearly $1 billion off sales during the quarter.
One bright spot for the company: HomeGoods, where US sales increased 12% last quarter.
TJX’s stock fell around 3% during pre-market trading.
Despite the sluggish holiday period, some analysts say TJX remains in strong shape in the long run.
“TJMaxx and Marshalls are in a good position. Consumers remain very value conscious and, once the pandemic is over, many will be unwilling to spend large amounts on clothing,” Neil Saunders, analyst at GlobalData Retail, said in a note to clients Wednesday.