With stores closed for 24% of the year, TJX profits dropped $3.1B
Photo | Grant Welker
The TJX Cos. headquarters in Framingham
TJX Companies, Inc., headquartered in Framingham, endured a massive financial hit in 2020 as the coronavirus pandemic forced the company to temporarily close stores both in the United States and abroad, according to a quarterly earnings report released Wednesday.
The company’s profit for its fourth quarter came in at $326 million, compared to $985 million during the same quarter a year earlier, a 67% decline. For the year, the company profited $90.5 million, down from $3.2 billion during the year prior, a difference of 97%.
According to the earnings report, while U.S. stores were largely open during the company’s fourth quarter, stores in Europe were closed for 63% of the quarter, and Canadian stores were closed for 32% of the quarter, significantly decreasing sales. TJX estimated the closures resulted in a loss of revenues between $950 million and $1.05 billion.
Across all markets, TJX stores were temporarily closed for 24% of the entire year.
Per the report, 690 stores remain temporarily closed because of the coronavirus pandemic, with the majority of those closed stores located in Europe. The company predicted the stores will be closed for 67% of the first quarter of the company’s fiscal 2022.
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