TJX (TJX, $$53.97) Q1 earnings hurt by covid-19 pandemic; CEO shows optimism on store reopenings
TJX reported earnings that were hurt by the coronavirus pandemic. But its CEO hinted at early signs of optimism from store re-openings.
In the fiscal first quarter ended May 2, the off-price department store company's revenue of $4.409 billion was less than half the year-ago level of $9.278 billion. The figure came in lower than the $5.82 billion predicted by analysts polled by Investing.com .
The company reported a net loss of - 74 cents a share, compared to analysts’ expectation of a loss of -2 cents a share. In the year-ago quarter, earnings were a positive 57 cents a share.
TJX temporarily stopped operating three online retail sites and its distribution centers, while drawing $1 billion from its credit lines and halting buybacks.
But TJX CEO Ernie Herrman sees some sanguine signs, as he mentioned that the company has witnessed “very strong sales” with their initial re-openings. But he did mention that retail environment remains uncertain. The company has opened more than 1,600 of its 4,500 stores globally so far.
The company said there will be no dividend for the first quarter, and also does not expect to pay out any in the current quarter.
TJX's Stochastic Oscillator stays in oversold zone for 1 day
Be on the lookout for a price bounce soon.
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Notable companies
The most notable companies in this group are TJX Companies (NYSE:TJX), lululemon athletica (NASDAQ:LULU), Gap (The) (NYSE:GPS), Abercrombie & Fitch Co (NYSE:ANF), Foot Locker (NYSE:FL), Guess (NYSE:GES), Stitch Fix (NASDAQ:SFIX).
Industry description
Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.
Market Cap
The average market capitalization across the Apparel/Footwear Retail Industry is 12.67B. The market cap for tickers in the group ranges from 256K to 119.4B. IDEXY holds the highest valuation in this group at 119.4B. The lowest valued company is DESTQ at 256K.
High and low price notable news
The average weekly price growth across all stocks in the Apparel/Footwear Retail Industry was 1%. For the same Industry, the average monthly price growth was 2%, and the average quarterly price growth was 5%. BZTAF experienced the highest price growth at 35%, while DBGI experienced the biggest fall at -19%.
Volume
The average weekly volume growth across all stocks in the Apparel/Footwear Retail Industry was -7%. For the same stocks of the Industry, the average monthly volume growth was 14% and the average quarterly volume growth was 53%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 53
P/E Growth Rating: 46
Price Growth Rating: 55
SMR Rating: 65
Profit Risk Rating: 73
Seasonality Score: 9 (-100 ... +100)