If Jim Cramer had one takeaway from the latest round of retail earnings, it's that e-commerce is ride or die when it comes to success in retail.
TJX,the parent company of T.J. Maxx, Marshalls, HomeGoods, Sierra and Homesense reported second quarter earnings ahead of the opening bell Wednesday.
A loss of 18 cents per share surpassed an expected loss of 10 cents per share as the coronavirus pandemic forced a shutdown of TJX retail locations. The company reported a profit of $759 million or 62 cents per share for the same period in 2019.
Revenue of $6.67 billion marked a 32% decline from the $9.78 billion reported for the same period last year, though it exceeded consensus estimates of $6.55 billion.
“For the quarter, we were very pleased that both our top and bottom lines well exceeded our internal plans, despite our stores only being open for a little more than two-thirds of the second quarter, and that our merchandise margin was excellent,” TJX CEO Ernie Herrman said in the earnings release.
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More than 99% of the 4,557 TJX-operated stores are open as of the end of the quarter.
The company did not declare a dividend for the quarter and suspended its share buyback.
Cramer said the treasure-hunting quality that made him fall in love with the stock in the first place may be its undoing as crowded stores with extended shopping visits don't work with social distancing practices amid the coronavirus pandemic.