Effective March 19, TJX is closing all its stores in the US, Canada, Europe, and Australia for two weeks according to a company press release. In certain regions, including Germany, Poland, Austria, Ireland, and the Netherlands, and a number of US and Canadian locations, the company had previously closed stores based on several factors, including government or health department requirements.
The company is also closing its online businesses tjmaxx.com, marshalls.com, and sierra.com. Further, the company is temporarily closing its distribution centers and offices, with associates working remotely when they can. We know our associates are very concerned for their health and financial well-being, and we plan to pay our store, distribution center and office associates for two weeks during these closures.
To further strengthen its financial position and balance sheet, and maintain financial liquidity and flexibility, the company is taking the following actions:
- Drawing down $1 billion from its revolving credit facilities.
- Suspending its share repurchase program.
- Evaluating its dividend program.
- Reviewing all operating expenses.
- Reducing capital expenditures.
The company also announced today that it is withdrawing its first quarter and full year fiscal 2021 financial guidance given on its February 26, 2020 earnings conference call. The company is not providing an updated outlook at this time.
“TJX is a great company with a great retail model. I want to reiterate that TJX entered 2020 in a very strong financial position. We consider the actions that we announced today as just prudent steps we are taking to further strengthen our financial liquidity and flexibility during this uncertain environment,” said TJX CEO and President Ernie Herrman. “Additionally, while we are evaluating our dividend in the near term, I want to emphasize that we remain committed to paying our dividends whenever the environment normalizes for the long term, as we have been for decades. With a 43-year history as a company, our management team and amazing organization are focused on managing through these unprecedented times for the long-term success of our company.”