Home Goods Offering Online Shopping: Could It Boost TJX Shares?

A leading home décor and furnishings retailer is upping its game with the rollout of online shopping. Could it boost revenue and the share price?

What Happened: HomeGoods, a store brand owned by TJX Companies Inc TJX, 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.

The company said the website for HomeGoods would have over 2,000 items for sale and will be updated frequently with “new finds.”

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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% and 10%, respectively.

Second-quarter revenue of $12.1 billion was up 23% 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% year-over-year.

The company reported comp sales for TJMaxx and Marshalls stores up 18% year-over-year. Comp sales for HomeGoods stores were up 36% 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.

TJX Companies are expected to report third-quarter earnings in November. Last year, the company reported $9.36 billion in revenue for the third quarter.

Price Action: TJX shares closed on Friday at $64.35 at the time of writing. Shares sit close to the mid-point of their 52-week range of $50.06 to $76.16.