Oppenheimer Has Perform Rating On TJX

Oppenheimer & Co. has a Perform rating on The TJX Companies, Inc. TJX. In a note sent to clients, Oppenheimer writes, "On December 10, TJX announced that it will shutter its AJ Wright division. Of the 162 stores in operation, 91 will be converted to a T.J. Maxx, Marshalls or Homegoods, while the remaining 71 (along with the home office and two DCs) will close. We believe this makes sense longer term as it allows TJX to expeditiously close underperforming locations, repurpose the remaining locations to higher profit footprints and leverage existing infrastructure. Reflecting the conversions and closures (scheduled for FY4Q11 and FY1Q12), the company should incur $150-170M in one-time after-tax charges, which will be offset by the 91 conversions. As such, we are raising our FY12E to $3.76 from $3.74." Shares of TJX closed at $45.07 on Friday.