Shares in TJX Cos declined over 7% in Wednesday’s morning trading, after the off-price retailer posted a 2Q loss of $0.18 per share. Analysts had expected a loss of $0.10 per share. The retail chain reported earnings of $0.62 per share in the year-ago quarter.
TJX’s (TJX) 2Q sales fell 32% to $6.67 billion year-over-year but came ahead of the Street consensus of $6.55 billion. The company said sales were affected by the coronavirus-related store closures in part of the quarter ending Aug. 1. The company has now reopened more than 4500 stores worldwide.
Open-only comp store sales, which the company defined as “the sales increase or decrease of these stores for the days the stores were open in the current period against sales for the same days in the prior year,” declined 3%. For the third quarter, TJX expects open-only comp sales to fall in the range of 10% to 20%.
On Aug. 18, Guggenheim analyst Robert Drbul maintained a Buy rating on the stock with a price target of $65 (20% upside potential). Drbul noted that the company’s tailwinds include higher quality merchandise, favorable real estate, and consumers’ increased investment in home products.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 16 Buys versus 1 Hold. The average price target of $63.65 implies upside potential of about 18%. (See TJX stock analysis on TipRanks).
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