TJX Profits Drop As Company Takes Charge for Data Theft
TJX posted a drop in quarterly profit due to a $12 million charge related to a recent security breach of the retailer's computer system.
The company , whose chains include Marshalls, T.J. Maxx and
HomeGoods, said net income for the first quarter that ended April 28 was $162.1 million, or 34 cents a share, down from $163.8 million, or 34 cents a share, a year earlier.
Excluding the charge, the retailer earned 37 cents a share. Analysts on average were expecting 38 cents, excluding items, according to Thomson Financial.
The company said the charge was for costs incurred to investigate and contain the computer intrusion, enhance computer security and systems, and communicate with customers, as well as technical, legal and other fees.
Beyond these costs, the company said it does not yet have enough information to reasonably estimate the losses it may incur from the incident.
TJX said it expects earnings from continuing operations of 32 cents to 34 cents a share for the second quarter, excluding charges of 2 cents to 3 cents a share related to the security breach. Analysts on average were expecting 34 cents, excluding items, according to Reuters Estimates.
The company expects second-quarter same-store sales growth of 3% to 4%.
Net sales for the quarter rose to $4.11 billion from $3.90 billion a year ago.