TJX Shares Rise Despite Reporting Poor First Quarter

TJX said the coronavirus decimated earnings for the fiscal first quarter, but sales at its re-opened stores are encouraging.

TJX  (TJX) - Get Report shares rose in pre-market trading, as it expressed some optimism about the future, despite an earnings report showing the coronavirus pandemic hammered the owner of T.J. Maxx and Marshalls.

In the fiscal first quarter of 2021, ended May 2, the company posted revenue of $4.409 billion, less than half the year-ago total of $9.278 billion. Analysts polled by predicted revenue of $5.82 billion for the latest quarter.

TJX registered a net loss of $887.489 million, or 74 cents a share, in the latest quarter, swinging from a profit of $700.178 million, or 57 cents, a year ago. Analysts forecast the latest earnings per share figure would total negative 2 cents.

TJX shares stood at $53.50, up 5.25% in pre-market trading on Thursday.

“The company’s 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,” TJX said in a statement.

But TJX CEO Ernie Herrman sees some promising signs. “We have been pleased to reopen as many stores as we have in May, as well as our e-commerce websites,” he said.

“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 re-openings.”

The company has opened more than 1,600 of its 4,500 stores globally and expects most to reopen by June 30. Among stores open at least a week, sales have come in above year-ago levels, though TJX cautioned that sales could be volatile.

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