Framingham, Mass.-based TJX Companies Inc. (NYSE:TJX) reported net sales for the first quarter of Fiscal 2021 were $4.4 billion. Net loss for the first quarter was ($887) million and loss per share was ($.74).
TJX, which calls itself "the leading off-price apparel and home fashions retailer in the U.S. and worldwide", said its 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.
As a result, the Company reported a substantial pre-tax loss versus an original expectation of significant pre-tax income.
TJX’s first-quarter cash flow was also negatively impacted by the temporary closure of its stores due to the COVID-19 pandemic (detailed in the Condensed Statements of Cash Flows below). This was primarily due to the Company paying the vast majority of its merchandise costs, expenses payable, and payroll as planned for the first quarter, despite a substantial loss of sales from store closures.
What’s more, TJX had shareholder distributions of approximately $480 million, which included its fourth quarter dividend payment and first quarter share buyback prior to suspending the program.
Beginning May 2, TJX started to reopen stores in select states and countries in accordance with local government guidelines. To date, the Company has reopened more than 1,600 of its stores worldwide. 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.
Shares jumped $3.68, or 7.2%, to $54.53.
