Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of the TJX Companies Are Up Today

By John Rosevear – Apr 8, 2020 at 3:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Tough moves to conserve cash have investors cautiously optimistic.

What happened

Shares of the TJX Companies (TJX 3.45%) were moving higher on Wednesday after the consumer discretionary company announced new measures to conserve cash while its stores are closed amid the coronavirus pandemic. 

As of 3:15 p.m. EDT, shares of the company, the corporate parent of TJ Maxx, Marshalls, and other off-price store chains, were up about 6.3% from Tuesday's closing price.

So what

In a Form 8-K regulatory filing made after the market closed on Tuesday, TJX said it will furlough most of the employees of its stores and distribution centers in the U.S. and Canada as of April 12. Employees who are eligible for benefits will continue to receive them while furloughed, at no cost. The company said it will take "comparable actions" for its employees working outside of those two countries, and it will reduce executives' pay until at least July 4. 

TJX employed about 286,000 people as of February 1, many of whom are part-time workers. The majority of its stores, about 3,300, are in the United States. 

The TJX logo on a red background

Image source: TJX Companies.

In a letter to employees and shareholders, CEO Ernie Herman said the extraordinary conditions of the pandemic have forced "decisions we would never want to make." 

"We are making every effort to prepare for reopenings, as soon as we believe we can operate safely in the communities we serve," Herman wrote. 

Now what

Herman and his team have historically been good about communicating developments to shareholders, employees, and other stakeholders. I expect that to continue as the world works through the coronavirus pandemic. 

In any event, the next formal update from the company will come no later than May 19, when TJX reports earnings for the first quarter of its 2021 fiscal year. 

John Rosevear has no position in any of the stocks mentioned. The Motley Fool recommends The TJX Companies. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The TJX Companies, Inc. Stock Quote
The TJX Companies, Inc.
$65.07 (3.45%) $2.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.