Report: TJX could take 15% hit from tariffs
Photo | Grant Welker
TJX Cos. is the parent company of TJ Maxx.
Retailer TJX could see a 15% drop in earnings due to tariffs it if doesn't raise prices, according to a new report.
The Wall Street Journal, citing a Bank of America Merrill Lynch analysis, reported Tuesday the Framingham owner of T.J. Maxx, Marshalls and HomeGoods could be hit along with other retailers who have the tough choice of eating the costs of higher tariffs or passing those costs along to consumers.
TJX would need to raise prices by 1.5% to make up for the new 25% tariff on Chinese imports, the report said.
The United States trade war with China has intensified in past week with rising tariffs on imported goods from both countries.
Other major retailers could face far worse earnings hits, the report said.
Bank of America Merrill Lynch put JCPenney's potential hit at 140%, Kohl's at 42% and Macy's at 27%. Nordstrom could take a 10% hit, the report said. Those other major retailers would have to raise prices by between 0.5% and 2.7% to make up for the tariffs, the report said.
TJX has stores in Canada, Australia and six countries in Europe: Austria, Germany, Ireland, the Netherlands, United Kingdom and Poland. The company lists overseas distribution centers in England, Germany and Poland, and overseas offices in England and Germany.
Net sales last year for TJX were $39 billion, with stronger sales in the United States than in Canada, Europe or Australia.
TJX will report its first-quarter earnings Tuesday.
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