Home News Tjmaxx Closing : Your Grandmother had four Wheels

Tjmaxx Closing : Your Grandmother had four Wheels


Tjmaxx Closing: “If your grandmother had four wheels, she’d be an omnibus!” my mother used to say. As I listened to TJX management explain the fourth-quarter 2020 earnings shortfall, that quote sprang to mind.

TJX’s earnings would have been higher if it wasn’t a worldwide corporation.

TJX may have made more sales if they had a more aggressive website.

TJX’s transportation costs would have been lower if it hadn’t had to race for merchandise in the first two quarters.

Tjmaxx Closing

That isn’t to say I disagree with the company’s strategy or management’s focus on fashion and home goods.

During the Covid-19 epidemic, fashion did not sell well. However, household products, which formerly accounted for roughly 33% of the company’s sales.

Have now increased to almost 40%. Home Goods will have its own website (homegoods.com) later this year, according to management.

TJX locations in Europe were closed in December and January. The majority of stores in the United States were open during the quarter, according to management.

However, regulatory mandates have forced the closure of approximately 690 TJX outlets in Europe and Canada.

Stores in Europe were closed for approximately 63 percent of the fourth quarter, while stores in Canada were closed for approximately 32 percent.

Due to the global epidemic of Covid-19, stores were closed for around 13% of the fourth quarter for the entire company.

During the fourth quarter, management anticipated that these closures cost $950 million to $1.05 billion in lost sales.

Earnings were reduced by $0.18 to $0.21 in the quarter due to decreased sales.

Sales in the fourth quarter of 2020 were $10.9 billion, down from $12.2 billion in 2019.

Comparable stores that were open during this time period were only down 3%. The quarter’s net income was $326 million.

Earnings per fully diluted share amounted to $0.27.

As a footnote, there was a $0.18 per share debt extinguishment charge and a higher tax rate, resulting in a $0.05 per share fall in earnings.

The company’s total sales for the year were $32.1 billion, down from $41.7 billion in 2019.

In stores that were open, comparable store sales fell 4% from the prior year.

The diluted earnings per share was $0.07

Sales and earnings were significantly impacted by the temporary closure of stores for around a quarter of the year, according to management.

So, what’s the plan for tomorrow? Based on Australia’s recovery experience in a post-pandemic climate, management is optimistic.

People will rush back to the TJX family of businesses as a result of the action, according to management.

This off-price retailer is known for the challenge of discovery while shopping. It has 21,000 suppliers all around the world who supply brand new items.

The corporation had to scramble to purchase enough merchandise in the first and second quarters, but now it must control overbuying.

Ernie Herman, the company’s CEO and President, stated that strict controls are now in place.

(Inventory was down 7.2 percent at the conclusion of the fiscal year compared to the previous year.)

“We feel extremely good about the strength of the business and our market share prospects beyond the health crisis as we enter the new fiscal year, while concern surrounding Covid-19 remains,” Mr. Herman said.

We are confident that consumers will continue to value our engaging treasure hunt shopping experience, differentiated, branded items, and value proposition.”

TJX’s perspective is bolstered, according to Herman, by the company’s activities throughout the pandemic.

He stated that the corporation has improved its relationships with current vendors.

Further more, there is plenty of available real estate, allowing the corporation to plan new stores and replace some existing ones.

Management as gained more confidence as a result of the company’s focus on consumer safety.

Convenient off-mall locations in urban, suburban, and rural areas should also be an advantage in capturing market share.

Some competitors’ stores may close, which will help the company maintain its expansion.

Yes, there are a lot of “ifs” in this paper. TJX, on the other hand, has a bright future in terms of customer service and merchandise excitement.

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Dimple Gola is the Chief editor at Bollywood and the Co-Founder of ‘Chop News'. She writes about Entertainment, Youth related topics, especially on Movie Reviews and Box Office Collections.


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