tjx earnings date

by - 23 12 2020

So what we wanted to do and this applies, by the way, with relocations in Marmaxx or in new stores and with HomeSense in Canada. So obviously, a lot as I in the prepared remarks said, a lot of our benefit had to do with the A, lower inventory levels but also significantly higher payables balance. Clearly, it is not the same. So if there is — if the real estate deal is right and it’s near a HomeGoods, right, Scott, we’re going to take advantage of that with some additional HomeSense stores as well even though we might already be in the market again with the HomeGoods. Our next question comes from Lorraine Hutchinson. Sure, Kate. Going forward, we believe the strength of our buying team, which numbers over 400 home buyers, our global buying offices, and strong relationships with vendors around the world, will allow us to capitalize on the best merchandise available in the marketplace and bring our shoppers exciting home fashions at terrific values. Again, and most importantly, I want to thank all of our associates worldwide who have shown an amazing commitment to TJX and have done outstanding work over these past eight months. The Algorithm predicts "% Predicted Move After Earnings Announcement" (PMAEA) for TJX three weeks prior to earnings date. And there were so much — it’s a bit of a tiger by the tail I would call with HomeGoods. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. In addition to leading to more temporary store closures, this also continues the uncertainty around shopping behavior. The apparel and home fashions retailer reported $0.71 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.31. And we always talk about good, better and best brands, etc. Similar to the second quarter, in the third quarter, these costs primarily included incremental payroll in our stores for enhanced cleaning and to monitor occupancy, personal protective equipment for our associates, and incremental expense related to the third quarter associate appreciation bonus. We feel very good about what we have planned this holiday season. That will be — what we’ve seen is, we had increased some of our payable terms across the board. TJX shares are … Yeah, freight costs will be going up. So if you do the math, that’s a significant amount of dollars and it’s probably the biggest impact to the fourth quarter. Lastly, we generated very strong cash flow and further increased our liquidity during the third quarter. This was primarily due to an increase in working capital and strong net income. To keep the call on schedule, we’re going to ask that you please limit your questions to one per person. So it’s a little of both, but I would say the store pickup is really — in the home — I think HomeGoods will be one of the healthiest divisions as we move forward into next year in terms of the ability to just keep capturing, especially in the medium term. We are truly grateful for their commitment to keeping our business open and moving forward, which requires them to physically go into work. But our merchandise margin was strong across the board, across all our divisions. If I could just also jump in, Lorraine, one thing we’re conscious about where we think it’s a benefit to us coming out of this is really the last thing we want to give up strangely enough on the COVID cost is because we’re getting a lot of credit with the consumer on our safety measures that we put in and with our associates and then we get this from survey data where we’re surveying constantly in different stores throughout the country and we’re getting high scores, which is one reason we think we’re doing as well as we are actually. If $750 million of bonds are tendered, the one-time pretax charge could be in excess of $225 million. We have decreased them but still at levels higher than what we normally would have pre-COVID. The consensus earnings estimate was $0.41 per share on revenue of $9.3 billion. These risks are discussed in the Company’s SEC filings, including, without limitation, the Form 10-K filed March 27, 2020 and the Form 10-Q filed August 28, 2020. As we look to capitalize on opportunities to attract more new customers in the future, we want them to have a positive shopping experience when they visit us to keep them coming back. It is a, I guess. Over the next few years, I think, yes, some good learning. We have a proven retail business model and we believe we are set up very well for continued success once this health crisis is behind us. Looking for new stock ideas? I think store inventories will still remain lighter than last year, primarily due to social distancing and having planning our inventory ourselves lower than last year. The final question of the day comes from Alexandra Walvis. Further, sales exceeded our plans across each of our divisions. The TJX Companies, Inc. (NYSE: TJX), the leading off-price apparel and home fashions retailer in the U.S. and worldwide, today announced sales and ope ... 2020 earnings … © 2020 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. We are in an excellent position to take advantage of real estate availability to open new stores and relocate existing stores. Our mission here though is for the future. I wanted to ask a follow-up on your confidence in the market share opportunity longer term. So to Scott’s point, we are not — on the COVID costs, we’re not letting go off those too quickly because we think it’s helping our top line. Once they get more comfortable and don’t want it, we’re going to have more shopping visits from our existing, let alone the new customers, but once the customers who haven’t been shopping come back in some of these non-trending categories, they are shopping elsewhere, it was mentioned earlier, whether it’s online or at the mass merchants, and I think those — a lot of that — those — that benefit that others are getting, they’re going to be shopping and getting — going to our store for the values we have in those not trending categories. Joining me and Deb on the call is Scott Goldenberg. Anyone that knows HomeGoods customers and their passion for it knows we are I think going to do a decent amount of sales fairly quickly. In closing, I want to reiterate that the entire management team is laser-focused on navigating through these times to ensure the stability of the business in the short term. First, we are convinced that we will be a gifting destination again this holiday season. Again, we believe our health and safety measures will encourage consumers who are comfortable doing in-store shopping this year to return to our stores. I would like to turn the conference call over to Mr. Ernie Herrman, Chief Executive Officer and President of The TJX Companies Incorporated. Our home business is great across the board, but specifically HomeGoods, we’ve started to get more aggressive on FY ’23 openings. So we’re still again very pretty much a year away from the launch of this. Thank you, Ernie, and good morning. Please go ahead, sir. I think we have, I mean, again we — as we’ve talked about the last two quarters, we slowed down significantly. The TJX Companies last posted its earnings data on November 17th, 2020. Maybe, Scott as a follow up, could you just help quantify the magnitude of merchandise margin expansion in the quarter? And for fiscal — and certainly signing stores for calendar ’22 and would expect to have start growing up into that — at least that 3% range of store openings as a percent of growth. So, it makes a lot of sense. Lastly, we expect higher incremental freight costs in the fourth quarter due to capacity constraints and higher rates. I thank you all for joining us today. Our above-plan third quarter results reinforce our confidence in the flexibility and strength of our business model over the long term. We are laser focused on the continued successful growth of TJX and seen numerous opportunities to leverage our strengths. Scott, I was also asking about the payable relationship, inventory niche you’ve seen something change there on a more permanent basis or if that — degradation ratio might go back to something more normal? Scott? Good question. Moving to the fourth quarter and our opportunities for the holiday selling season. Now, I’d like to walk through our third quarter cash flow and liquidity. The TJX Companies, Inc. has confirmed Earnings date and time. I think all of our teams would say yes to those things. The TJX Companies, Inc. Reports Q3 FY21 Results; Reports Above-Plan Overall Open-Only Comp Store Sales of Down 5%; Earnings Per Share of $.71; Plans to … I will — okay, so on HomeGoods, I want to make sure — I know I heard the first part. As with all our articles, AlphaStreet, Inc. does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company’s SEC filings. The Silver Lining in TJX Companies’ Wretched Earnings Report Sales fell off a cliff, but the off-price retailer is having no problem securing inventory for its post-lockdown recovery. We see the power of our global sourcing from a universe of over 21,000 vendors as a tremendous advantage. And my focus on that statement was more about the sales. We just are trying to do as good as — our merchants are doing a very good job on the non-trending areas, you would call them, and really trying to do the best mix of excitement and value. Now, I’ll turn the call over to Scott for a financial update and then we’ll open it up for questions. And I just wanted to quickly follow-up, Ernie, on something you said in your prepared remarks. Having said that, we still were up — we were up still quite a bit on the markdowns. So that was certainly the driver of that but also strong markdown performance in Canada. During the quarter, we generated $4.1 billion of operating cash flow. They are not extreme in either direction, not too light, not too heavy. So the first one, very good merchant question. Okay. We may also use some of the offering proceeds for general corporate purposes. So, if you look at all the store closures that have happened and I’m guessing you’re kind of getting at that issue where there is market share opportunity, but how is our inventory replenishment I think you asked in the beginning and supply constraints etc., that we see getting incrementally better month-by-month as we move forward here. Just those two items. In the U.S. and Canada, we will leverage the strengths of our retail brands together in multi-banner campaigns. So when you say you’re down, whatever the number is, whatever percent you are against those levels, the stores are going to feel a little more naked than they are today. The TJX Companies has generated $2.67 earnings per share over the last year and currently has a price-to-earnings ratio of 117.5. and levels of product. We believe that our aggressive expansion of HomeGoods over the past five years has positioned us very well to capture outsized home share in this environment. Ladies and gentlemen, thank you for standing by. All rights reserved. There is a great real estate opportunity out there as we’ve talked about. This holiday season, we are planning to offer an expanded assortment of gifts for those shoppers who prefer to shop online. And then my second question was just a follow-up on the freight discussions. Lastly, we see a great opportunity to capture additional share of the home category, which has been strong for us for many, many years. TJX provides recordings and handouts of presentations for reference by our investors and other stakeholders. Second, overall inventory availability and the buying environment are excellent. So we have actually been running on our trending. Next is the flexibility of our buying, store formats, and distribution networks, which we see as a key strength in a rapidly evolving retail landscape. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: You have already added five stocks to your watchlist. In all of those areas that even aren’t considered hot, our merchants have been going out and really trying to deliver a great excitement and do maximize the sales the demand that’s out there, we want to maximize the sales within that demand that’s out there on those non-trending areas. Also, as we increase our hours, we do — we are increasing our costs for COVID in the fourth quarter. Thank you. Ernie, you sound obviously very bullish on HomeGoods market share opportunities. We’re also going to try to help with the profit though. And so we know we’re spending to do that. So, at this point for the fourth quarter and then we’ll address it as we get to year-end, we would expect to have the full amount of COVID costs continue to be implemented. Inventory levels we show we’re lean, but if you walk into our stores right now, and this is any brand, if you walked into Winners, TJ Maxx, Marshalls, HomeGoods, you would feel the inventory levels feel very appropriate based on social distancing, the way consumers shop versus three months ago, inventory — average store inventory levels are less than they are at this time of the year. It isn’t hard to see why investors are skeptical of the TJ Maxx parent. Long term, I think, as businesses start to get in and the vaccines kick in, I guess you could argue people will be less at home more, but I do believe businesses across the country and in other countries [Indecipherable] x amount of employees stay at home that weren’t at home. Analysts: Matthew Boss — JPMorgan — Analyst This transcript is provided as is without express or implied warranties of any kind. Please go ahead, sir. TJX Companies (TJX) reports earnings on 2/17/2021. TJX: The TJX Companies, Inc. - Earnings Announcements. I do think given our cash position and we’ll have to see it’s an uncertain environment, but we’ll have to see how — where we end up at the end of the year going into the first quarter, but given the strength of our balance sheet at the moment, we certainly took on the COVID debt that we did in the early April time frame that certainly we would look to — as we’re doing in the marketplace today, we would look longer term to try to delever the balance sheet as we move through next year and getting rid of some of those incremental interest costs that we have. Revenue fell … We are convinced that we can continue our successful profitable growth once we are past this health crisis and the environment normalizes. You said something about there are limits on how severely you would be willing to shift your mix of goods in the short term as more people stay at home. The mark-on was extremely strong and I think…. And then the others — so but that still leaves you with a chunk of the store that the one reason we were able to achieve a minus 5% is we were not — you can’t drop 80% in those other areas of the store, we wouldn’t do that — we would only run a minus 5%, does that makes sense? Currently, the vast majority of these are in Europe, with only a very small number in North America. Certainly, there has been some, as you probably have heard industry-wide, there were some West Coast slowdowns that have impacted some categories, but not to the point, in our case, where it has really saddled or had a material effect on our flow because we are actually right now fairly happy or pleased with the amount of inventory we have in really all of our divisions, all of the brick and mortar specifically. And I’m sorry, on the second part of the question, was that about margins or on HomeGoods or…, Yeah, just the margin implications on HomeGoods specifically of building an online business given some of the…. And then secondly, will the entirety of the $270 million COVID costs go away post vaccine? A couple of quick ones. I am very pleased that both our sales and earnings per share well exceeded our plans. The passion of our HomeGoods customers is terrific to see, and we are looking forward to bringing them our great brands and values 24 hours a day, seven days a week. That said, I do want to highlight a couple of significant items that negatively impact our fourth quarter bottom line versus last year. Ladies and gentlemen, thank you for standing by. Yeah. To be clear, availability of merchandise in the marketplace is excellent and is not a factor impacting inventory levels. [Operator Instructions] I would like to turn the conference call over to Mr. Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc. The — on the store comps, we’ve started to — obviously when COVID first started, we put a little bit of the brakes on, but we only did that for a number of months. Thank you so much. This would represent a 13% increase versus our previous dividend of $0.23 last paid in March of 2020. We are confident in our ability to manage the areas we can control like buying, merchandising, and store operations. We believe we are in excellent shape to build on our leadership positions in the U.S., Canada, Europe and Australia over the long term. The TJX Companies Earnings Estimates and Actuals by Quarter Additionally, while we have approved the publishing of a transcript of this call by a third-party, we take no responsibility for inaccuracies that may appear in that transcript. Stay up to date with lastest Earnings Announcements for The TJX Companies, Inc. from Zacks Investment Research MarketBeat does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security. Sure, Paul. Analysts expect Ross Stores to report earnings of 12 cents per share on sales of $2.2 billion, down from $3.8 billion in the first quarter of 2019. Now to our third quarter results. Scott, of course, will talk more about this in the tender offer we announced this morning in his financial update in a moment. And so, I think on the merchant side, which is a big chunk of what allowed us to deliver the margins, right, Scott, in the quarter, I think we did have some pretty good learnings. TJX has successfully grown its business through many retail and economic cycles throughout our 43-year history, and I believe that we’ll come out of this health crisis an even stronger Company on the path to even greater success in the future. We’ve had to recently slow down all of our buying and most of the divisions and departments within the stores because the availability out there is just as you might expect, it’s more than it was a number of months ago, and I think that just has to do with the cadence of the wholesalers now trying to get back on track and project where retailers are going to be and bring in more goods. So it’s not just the store openings, we’re able to relocate a lot of stores which we’re going to be repositioning. The dark blue line represents the company's actual earnings per share. Yes, there is a little different complexion on the new vendors because what’s happening is they have tended — on the new ones have tended to not be the big, huge, enormous household name vendors. With our wide selections across many merchandise categories, we believe customers will find gifts for everyone on their list in our stores and online. Yeah. Your line is open. I think you do that every year, so I’m curious if you’ve seen any difference in the vendors that are coming on board with [Indecipherable] categorize them versus what you would see in a normal year? And just Matt to just go on a little in terms of the rest of the merchandise margin, there was the timing of the markdowns so that was significant worth approximately 50 basis points that benefited us in the third quarter. We also continued to receive very good feedback on our health and safety protocols from customers who have shopped in our stores. Your line is open. Offsetting some of that is we’ve had pretty good savings in the third quarter on advertising, travel and other payroll-related areas, some of which we’ve talked about as we do have some closure of our fitting rooms etc. Thanks. Shares of TJX Companies (NYSE:TJX) fell 1.2% in pre-market trading after the company reported Q3 results.Quarterly Results Earnings per share … We actually continue to drive those hot businesses over the next three to six months, but we buy so hand to mouth as you know, we can adjust based on trends, but we believe those hot categories will stay hot over the next six months anyway, as home will go longer than that for sure. And now if we look out, I think Scott might have it as we look out to fiscal ’23, calendar ’22 — well, first of all, we’re still opening stores next year, and then the year after, we have now started to ramp those up a little bit because we’re bullish on it. Thank you, Jordan. So I think we will get market share back not just from the closed stores, but from others who have benefited that once customers shop more and want to — and are comfortable going and doing multiple visits, we’re going to get more than our fair share. FactSet Research Systems, Inc. (NYSE: FDS) Q1 2021 earnings call dated Dec. 21, 2020 Corporate Participants: Rima Hyder -- Head of Investor and Media Relations Philip Snow -- Chief Executive Officer Helen Shan -- Chief Financial, Sneaker maker Nike, Inc. (NYSE: NKE) is currently enjoying the benefit of its aggressive direct-to-consumer initiatives that helped in overcoming the fall in store traffic during the pandemic. I’m almost looking at that spend is, yes, safety for our customers and our associates, number one priority. So we would expect some of the net costs for COVID to go up in the fourth quarter. Now we’ve had some of these more special guys. Thanks, good morning. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. We saw strength in our home, beauty, and activewear categories across Marmaxx, TJX Canada, and TJX International. Moreover, earnings increased year over year. That should start to normalize and that — and some of that will flip as we move into next year. So we’re very excited about it. We have made progress in flexing our buying dollars and shifting to higher demand categories. It’s almost indirectly a marketing business, getting spend at the same time, and I think that’s going to plant a loyalty issue with customers coming out of this as we move forward. Some of that will be reduced as we open up the business, and are spending money on marketing, we will have less savings. This transcript is produced by AlphaStreet, Inc. One of the dynamics that’s going on to help offset the COVID cost is the extremely healthy merchandise margin, which the question is when we come out of COVID, will that still be to that degree and it’s kind of a — you’re in a weird situation where we’re taking advantage of coming out of COVID and we’re still doing this now as well as we look out what we’ve placed. Lastly, e-commerce, we continue to add new categories and brands to our U.S. and U.K. online businesses. I’d like to start our call today by expressing our sincere gratitude to all of our global associates for their continued hard work and dedication as we navigate the business through this health crisis. Do we believe there is some of that opportunity in the future? Thank you. I appreciate all the information guys. And the second, you alluded to is on freight. We believe HomeGoods e-commerce will allow us to leverage both our strength in the home category and the power of our global buying organization and sourcing universe. Good morning. The Earnings Whisper Score gives the statistical odds for the stock ahead of earnings. We believe we have been prudent in our financial approach to planning the business and management of our balance sheet, and we ended the quarter in a very strong liquidity position. So if that’s 25% of the office workforce base at home that wasn’t, that should still give win to the HomeGoods business I think for a handful of years. The percentages were less than last year, which was healthy. We’re going to operate this differently. Medium- to long-term, while much of what I just discussed are macro headwinds that could persist until a vaccine is widely available and the environment normalizes, we feel very confident in the market share opportunities we see ahead. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. So if you’re a key branded player and you want to deal with a solid retailer who is also again not very visible with the product, right, and it’s part of a treasure hunt shopping experience, I believe there will be some benefits still going forward. 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