TJX Writes Down Inventory by About Half a Billion Dollars
May 21 2020 - 9:07AM
Dow Jones News
By Allison Prang
TJX Cos. said it wrote down its inventory by about $500 million
for the first quarter after closing locations because of the
coronavirus pandemic.
TJX, the parent for T.J. Maxx and Marshalls, said the inventory
was primarily transitional or out-of-season merchandise and
merchandise that was already in markdown that was expected to be
reduced further. It said it expects to sell the inventory in the
current quarter.
TJX has reopened more than 1,600 stores worldwide, the company
said, adding that 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. TJX said its stores
could be largely reopened by the end of next month.
"Although it's still early and the retail environment remains
uncertain, we have been encouraged with the very strong sales we
have seen with our initial reopenings," Chief Executive and
President Ernie Herrman said in prepared remarks. He added the
company is "seeing plentiful off-price buying opportunities."
The company's total loss for the first quarter was $887.5
million, compared with a profit of $700.2 million a year ago. TJX
said the loss was 74 cents a share, compared with a profit of 57
cents a share.
Net sales fell by more than half in the first quarter to $4.41
billion from $9.28 billion.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
May 21, 2020 08:52 ET (12:52 GMT)
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