TJ Maxx parent swings to a loss, beats sales expectations

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TJX Cos. shares sank nearly 5% in Wednesday premarket trading after the off-price retailer reported wider-than-expected second-quarter losses. Net losses totaled $214.2 million, or 18 cents per share, after net income of $759.0 million, or 62 cent per share, last year. Sales for the quarter totaled $6.67 billion, down from $9.78 billion last year. The FactSet consensus was for a loss of 10 cents per share and sales of $6.55 billion. TJX, whose portfolio of stores includes TJ Maxx and Marshalls, said its results were impacted by the coronavirus-related closures of its stores for nearly a third of the quarter. Open-only comp store sales, which the company defines as “the sales increase or decrease of these stores for the days the stores were open in the current period against sales for the same days in the prior year,” were down 3%. The company’s HomeGoods chain delivered double-digit open-only comp sales increases each month of the quarter, with strong sales at HomeSense and home goods departments across the portfolio, according to Chief Executive Ernie Herrmann. The company now has 4,500 stores open worldwide, though there have been some inventory delays. TJX has paid off the $1 billion it drew down from its revolving credit facilities in March and ended the second quarter with $6.6 billion in cash. For the third quarter, TJX expects open-only comp sales to fall in the range of 10% to 20%. TJX stock is down 5.9% for the year to date while the S&P 500 index has gained nearly 5% for the period.
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