Couple updates on TJX. No change in long-term thesis. TJX announced a couple steps they need to take in the current environment to strengthen their balance sheet and preserve capital.
· They suspended Q1 dividend – TJX indicated in their 10K that they do not intend to declare a dividend for the first quarter of fiscal 2021. They had already indicated they were “evaluating” their dividend about a week ago. This should be a temporary cut. Mgmt. said they remain committed to paying their dividends whenever the environment normalizes.
· Debt offering – Today TJX filed for a $4B debt offering. This is an additional step in strengthening their financial position and balance sheet to maintain financial liquidity and flexibility.
· Credit Suisse and Wells Fargo both upgraded TJX to a buy today.
Sarah Kanwal
Equity Analyst, Director
Direct: 617.226.0022
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square, Suite 500
Boston, MA 02109
$TJX.US
[tag TJX]
[category equity research]