But right now, it’s too early to say when our COVID costs are going to be decreased in the store. TJX Companies Inc. Q3 2021 earnings call dated Nov. 18, 2020. I just don’t know if we can move it to that degree on the margin rates over the long, long term. First is the recent resurgence of COVID cases and the consumer impact. As to the cadence of sales, overall open-only comp store sales were sluggish in August and improved significantly for the remainder of the quarter, with September being the strongest month. TJX Companies (TJX) reported 3rd Quarter October 2020 earnings of $0.71 per share on revenue of $10.1 billion. TJX annual and quarterly earnings per share history from 2006 to 2020. I would like to turn the conference call over to Mr. Ernie Herrman, Chief Executive Officer and President of The TJX Companies Incorporated. Revenue fell … Second, we believe our relationships with vendors will grow even stronger as other retailers close stores. Moving to the business update, I’m going to start with a recap of our third quarter results, followed by some comments on the fourth quarter, and then move to the market share opportunities we see for TJX in the medium and the long term. Yeah. I think store inventories will still remain lighter than last year, primarily due to social distancing and having planning our inventory ourselves lower than last year. So one on HomeGoods, any thoughts at this stage on this — on the potential for that online business as it impacts the percentage of the total and anything on the margin implications of that given the cost of shipping some of that home products? I thank you all for joining us today. But our merchandise margin was strong across the board, across all our divisions. Learn everything you need to know about successful options trading with this three-part video course. HomeGoods in Canada drove the majority of that as HomeGoods as you’d expect given the comp they had with chasing the inventory we had very few markdowns compared to at any point at HomeGoods. We believe we are in excellent shape to build on our leadership positions in the U.S., Canada, Europe and Australia over the long term. It’s almost indirectly a marketing business, getting spend at the same time, and I think that’s going to plant a loyalty issue with customers coming out of this as we move forward. In the U.S. and Canada, we will leverage the strengths of our retail brands together in multi-banner campaigns. Right. Lastly, we are seeing softer demand for certain product categories given the number of people continuing to spend more time at home. I wanted to ask about SG&A. Markdowns were also better than anticipated, as sales exceeded our plans and consumers responded favorably to our fresh merchandise mix. We just are trying to do as good as — our merchants are doing a very good job on the non-trending areas, you would call them, and really trying to do the best mix of excitement and value. Earnings per share included a $0.09 benefit from our lower tax rate versus last year, which was due to a true-up of our year-to-date tax rate as well as the shifting of income and loss positions across our operating jurisdictions. Scott Goldenberg — Senior Executive Vice President, Chief Financial Officer. Shares are up 8.1% since reporting last quarter. And then the others — so but that still leaves you with a chunk of the store that the one reason we were able to achieve a minus 5% is we were not — you can’t drop 80% in those other areas of the store, we wouldn’t do that — we would only run a minus 5%, does that makes sense? Anyone that knows HomeGoods customers and their passion for it knows we are I think going to do a decent amount of sales fairly quickly. I also want to mention from a sequential standpoint, merchandise margin in the fourth quarter will not get a benefit from a shift in markdowns like we had in the third quarter. Good morning. There is a great real estate opportunity out there as we’ve talked about. As an international retailer with operations around the world, we continue to follow government mandates in our regions, which means at this time, we have some stores temporarily closed. Thank you so much. Your line is open. Certainly, the recent news of the vaccines and what that could do in terms of helping, as Scott mentioned, when customers get comfortable shopping stores in general, I think we are going to be positioned extremely well to come out of the box and gain more market share from brick and mortar or across many categories, not just in the home area, throughout the whole store, I think we’re going to be positioned. As a point of reference for the two weeks of the fourth quarter, overall open-only comp stores were down 7%, similar to the trend we saw in the last week of October. During the quarter, we generated $4.1 billion of operating cash flow. Get short term trading ideas from the MarketBeat Idea Engine. Corporate Participants: Ernie Herrman — Chief Executive Officer and President. We also continued to receive very good feedback on our health and safety protocols from customers who have shopped in our stores. So this year, we’re opening up approximately 50 stores. So — and then there was a small benefit — well, not small, but 30 basis points benefit from the hedges in the quarter. TJX Posts Strong Q4 Earnings, Dividend Hike Similar to the second quarter, in the third quarter, these costs primarily included incremental payroll in our stores for enhanced cleaning and to monitor occupancy, personal protective equipment for our associates, and incremental expense related to the third quarter associate appreciation bonus. The TJX Companies Earnings Estimates and Actuals by Quarter Scott, any thoughts at this stage on how much of the headwind that could be in the medium term as we go into next year or a little too early to talk about that? The final question of the day comes from Alexandra Walvis. I know the news around the resurgence is difficult for all of us to see. And I’m sorry, on the second part of the question, was that about margins or on HomeGoods or…, Yeah, just the margin implications on HomeGoods specifically of building an online business given some of the…. So that was very aggressive, we got there very quickly. First, we’re expecting an increase in the amount of incremental COVID costs compared to what we saw in the third quarter. The Algorithm predicts "% Predicted Move After Earnings Announcement" (PMAEA) for TJX three weeks prior to earnings date. We expect our inventory flow to incrementally improve throughout the fourth quarter. And so right now, obviously, it is not something we would be giving our numbers out as to what we’re expecting to do for business. I just don’t think we will be able to maintain as to this degree. I’ll start off and then I’ll hand it over to Scott. TJX Cos. TJX, +0.08% shares rose 3.4% in Wednesday premarket trading after the off-price retailer reported fiscal third-quarter earnings that beat expectations and says it … As we said in our release, we are not providing a financial outlook for the fourth quarter due to COVID and the increasing uncertainty around temporary store closures and the consumer shopping behavior in this environment. While we cannot give specific guidance at this time, if any of the bonds are successfully tendered, we would incur a pretax cash charge in the fourth quarter related to the extinguishment of this debt. We have made progress in flexing our buying dollars and shifting to higher demand categories. In terms of the offsets to that and the third to fourth quarter, yeah, we do have government relief that we’ve been getting, particularly in the third quarter from Canada and Europe that are still — that we’re offsetting the cost. Categories Consumer, Earnings Call Transcripts, TJX Companies Inc.  (NYSE: TJX) Q3 2021 earnings call dated Nov. 18, 2020, Ernie Herrman — Chief Executive Officer and President, Debra McConnell — Senior Vice President, Global Communications, Scott Goldenberg — Senior Executive Vice President, Chief Financial Officer, Kate Fitzsimons — RBC Capital Markets — Analyst, Lorraine Hutchinson — Bank of America Merrill Lynch — Analyst, Kimberly Greenberger — Morgan Stanley — Analyst, Alexandra Walvis — Goldman Sachs — Analyst. Yeah, freight costs will be going up. I wanted to ask you about two things. TJX shares are … So one might not expect that, but we are and the second thing is…. The Earnings Whisper number was $0.43 per share. Now, I’d like to walk through our third quarter cash flow and liquidity. With excellent overall inventory availability, mark-on was very strong. Sure, Paul. We are laser focused on the continued successful growth of TJX and seen numerous opportunities to leverage our strengths. And for fiscal — and certainly signing stores for calendar ’22 and would expect to have start growing up into that — at least that 3% range of store openings as a percent of growth. Stay up to date with lastest Earnings Announcements for The TJX Companies, Inc. from Zacks Investment Research In addition to leading to more temporary store closures, this also continues the uncertainty around shopping behavior. And from the team here at TJX, we hope you all stay well and we wish you good health. While overall inventory was down, in-store inventory levels improved significantly compared to the second quarter, and our closed store, we want them to be in this environment. Net sales for the third quarter of Fiscal 2021 were $10.1 billion. So clearly — and then a lot of home business is being done online and so there is a just such a big territory out there of market share we can go to grab from. Learn more. First, we intentionally planned lower in-store inventory levels to accommodate social distancing and to account for the planned decline in our year-over-year sales. And there were so much — it’s a bit of a tiger by the tail I would call with HomeGoods. And our treasure hunt shopping experience offers customers that element of discovery when they’re looking for some inspiration for what to buy for the people on their holiday list. The leading off-price retailer has a trailing four-quarter positive earnings surprise of 3%, on average. This flexibility allows us to offer consumers a broad mix of branded merchandise across a very wide consumer demographic. They are not extreme in either direction, not too light, not too heavy. So we would expect some of the net costs for COVID to go up in the fourth quarter. Any opinion expressed in the transcript does not necessarily reflect the views of AlphaStreet, Inc. © COPYRIGHT 2020, AlphaStreet, Inc. All rights reserved. And I just wanted to quickly follow-up, Ernie, on something you said in your prepared remarks. I’d like to start our call today by expressing our sincere gratitude to all of our global associates for their continued hard work and dedication as we navigate the business through this health crisis. Now, I’ll turn the call over to Scott for a financial update and then we’ll open it up for questions. On the day of each earnings release, TJX expects to hold a conference call with analysts to discuss results, operations, and business trends presented in a webcast on this website. Again, and most importantly, I want to thank all of our associates worldwide who have shown an amazing commitment to TJX and have done outstanding work over these past eight months. $ 9.3 billion to issue new bonds maturing in seven and 10.... 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