We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TJX Companies Shuts Stores, Withdraws View Due to Coronavirus
Read MoreHide Full Article
The outbreak of the novel coronavirus compelled the renowned off-price retailer, The TJX Companies, Inc. (TJX - Free Report) , to announce store closures across the United States, Canada, Europe, and Australia. The shutdown, which is scheduled to last for two weeks, will be effective from today. Earlier, TJX Companies had announced closures of stores in various regions including Germany, Poland, Austria, Ireland, Netherlands as well as various shops in the United States and Canada.
Moreover, management stated that the company’s online businesses via tjmaxx.com, marshalls.com and sierra.com are going to be non-operational due to the recent coronavirus outbreak. Also, TJX Companies’ distribution centers along with offices will be shut down temporarily. The company will continue to make payments to its store, distribution centers and office associates for the abovementioned period.
The company withdrew its recently-provided guidance for the first quarter and fiscal 2021 considering the current situation and its unpredictable impact on results. During fourth-quarter earnings call, management projected earnings per share (EPS) in the range of $2.77-$2.83 for fiscal 2021. The figure indicated growth of 4-6% from $2.67 per share reported in the year-ago quarter. Further, it had expected consolidated and Marmaxx comps growth in the range of 2-3% during the same time period.
For the first quarter, the company had anticipated earnings in the band of 59-60 cents per share. The projected figure suggested a rise from 57 cents reported in the year-ago quarter. TJX Companies had projected consolidated comps growth of 2-3% for the quarter. It had anticipated comps at Marmaxx to increase in the same range. However, the company has withdrawn these forecasts and refrained from providing any update on the same.
Also, retailers such as Kohl’s Corporation (KSS - Free Report) , Abercrombie & Fitch (ANF - Free Report) , Nordstrom (JWN - Free Report) and American Eagle Outfitters withdrew their initial guidance and closed stores due to rising concerns related to the COVID-19 pandemic. Companies are bearing the brunt of supply-chain bottlenecks due to travel restrictions imposed to contain the spread of the deadly virus. The outbreak has caused people in most cities to stay indoors, which lowered store traffic.
Coming back to TJX Companies, in an attempt to strengthen its financial position amid the crisis, the company has undertaken a number of measures including drawing down $1 billion from its revolving credit facilities as well as terminating the share repurchase program. Moreover, management is evaluating its dividend and reassessing all operating expenses. Also, TJX Companies will reduce its capital expenses.
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
TJX Companies Shuts Stores, Withdraws View Due to Coronavirus
The outbreak of the novel coronavirus compelled the renowned off-price retailer, The TJX Companies, Inc. (TJX - Free Report) , to announce store closures across the United States, Canada, Europe, and Australia. The shutdown, which is scheduled to last for two weeks, will be effective from today. Earlier, TJX Companies had announced closures of stores in various regions including Germany, Poland, Austria, Ireland, Netherlands as well as various shops in the United States and Canada.
Moreover, management stated that the company’s online businesses via tjmaxx.com, marshalls.com and sierra.com are going to be non-operational due to the recent coronavirus outbreak. Also, TJX Companies’ distribution centers along with offices will be shut down temporarily. The company will continue to make payments to its store, distribution centers and office associates for the abovementioned period.
The company withdrew its recently-provided guidance for the first quarter and fiscal 2021 considering the current situation and its unpredictable impact on results. During fourth-quarter earnings call, management projected earnings per share (EPS) in the range of $2.77-$2.83 for fiscal 2021. The figure indicated growth of 4-6% from $2.67 per share reported in the year-ago quarter. Further, it had expected consolidated and Marmaxx comps growth in the range of 2-3% during the same time period.
For the first quarter, the company had anticipated earnings in the band of 59-60 cents per share. The projected figure suggested a rise from 57 cents reported in the year-ago quarter. TJX Companies had projected consolidated comps growth of 2-3% for the quarter. It had anticipated comps at Marmaxx to increase in the same range. However, the company has withdrawn these forecasts and refrained from providing any update on the same.
Also, retailers such as Kohl’s Corporation (KSS - Free Report) , Abercrombie & Fitch (ANF - Free Report) , Nordstrom (JWN - Free Report) and American Eagle Outfitters withdrew their initial guidance and closed stores due to rising concerns related to the COVID-19 pandemic. Companies are bearing the brunt of supply-chain bottlenecks due to travel restrictions imposed to contain the spread of the deadly virus. The outbreak has caused people in most cities to stay indoors, which lowered store traffic.
Coming back to TJX Companies, in an attempt to strengthen its financial position amid the crisis, the company has undertaken a number of measures including drawing down $1 billion from its revolving credit facilities as well as terminating the share repurchase program. Moreover, management is evaluating its dividend and reassessing all operating expenses. Also, TJX Companies will reduce its capital expenses.
We note that shares of this Zacks Rank #3 (Neutral) company have lost 24.6% in the past six months compared with the industry’s decline of 12.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>