TJX posts net loss of 887 million dollars
By Prachi Singh
May 21, 2020
The TJX Companies, Inc. has reported net sales for the first quarter of 4.4 billion dollars, while net loss reached 887 million dollars and loss per share was 74 cents. The company said in a statement that its first quarter results were negatively impacted by the temporary closure of its stores for approximately half of the quarter due to the Covid-19 pandemic and as a result, it reported a substantial pre-tax loss versus an original expectation of significant pre-tax income.
Commenting on the trading update, Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., said: “While the pandemic has resulted in our making difficult decisions, TJX has always been and remains a fundamentally strong company. As to our sales results, we saw strong trends prior to the impact of Covid-19. For the month of February, we delivered a 5 percent consolidated comp increase driven by customer traffic. All four major divisions had a February comp increase of 5 percent or better. We have been pleased to reopen as many stores as we have in May, as well as our e-commerce websites.”
Beginning May 2, 2020, TJX said that the company started to reopen stores in select states and countries and has reopened more than 1,600 of its stores worldwide. Initial sales overall have been above last year’s sales across all states and countries for the over 1,100 stores that have been reopened for at least a week. In the U.S., the company has fully or partially reopened in 25 states and internationally, TJX Canada began reopening stores in some provinces this week, and stores in Germany, Austria, Poland, the Netherlands, and Australia are fully open, while stores in the U.K. and Ireland remain closed. The company also reopened its four e-commerce websites in the U.S. and U.K.
During the fiscal quarter ended May 2, 2020, the company increased its store count by 16 stores to a total of 4,545 stores.