TJX profits plunge $1.6B in wake of coronavirus pandemic

Photo/Grant Welker TJX's Framingham headquarters

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The TJX Companies, Inc., headquartered in Framingham, said Thursday it had its profits drop from $700 million in the first quarter last year to a $887 million loss in the first quarter this year, as it was forced to close its stores worldwide in the wake of the coronavirus pandemic.

The reported $4.4 billion in sales during the first quarter of fiscal 2021, a 52% drop from its $9.2 billion in sales from the first quarter of fiscal 2020, the company reported in a quarterly earnings statement.

The company attributed the loss to the temporary closure of its stores because of the coronavirus pandemic. According to TJX, its stores were closed for approximately half the quarter.

TJX stores, which include TJMaxx, Marshalls and HomeGoods, began reopening in some areas on May 2, after all stores closed beginning March 19.

TJX temporarily furloughed the majority of its hourly store and distribution center employees in the U.S. and Canada as of April 12. Although the company declined to share how many employees were impacted by the furlough, the company has about 270,000 employees worldwide, including more than 4,000 in Central Massachusetts, according to WBJ's Research Department.

Senior executives also took a pay cut as part of the austerity measures.

Noting that sales will likely fluctuate, the company expressed optimism about its ability to bounce back, citing strong initial sales following the reopening of more than 1,600 stores worldwide.

“We believe this very strong start speaks to our compelling value proposition and the appeal of our treasure-hunt shopping experience, as well as pent-up demand,” said CEO Ernie Herrman, in a statement.

The company said it is confident it has sufficient liquidity for the remainder of the year. On May 2, the company had $4.3 billion in cash.