The Russian invasion of Ukraine has caused a major retailer to rethink one of its investments.
The TJX Cos., parent company of TJ Maxx, Marshalls and Home Goods, said in a filing on Thursday that it would divest its 25% equity ownership in Familia, which operates more than 400 off-price stores in Russia, “in support of the people of Ukraine.”
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In addition, two TJX executives — group president Doug Mizzi and CFO Scott Goldenberg — have resigned from their director and observer positions, respectively, on the Familia board, effective immediately.
TJX acquired its stake in Familia from existing shareholders for $225 million in late 2019. At the time, the U.S. retailer stated that it saw “an opportunity to invest in an established, off-price retailer with significant growth potential in the Russian market.”
As of January 29, 2022, the value of TJX's investment in Familia was $186 million, with the amount reflecting the decline of the Russian ruble. TJX said it may have to record an impairment charge from the sale.
TJX reported that its net sales rose 27% to 13.854 billion from $10.943 billion in the fourth quarter, ended Jan. 29, missing estimates of $14.218 billion. reported net income of $940.2 million, or $0.78 per share, up from $325.5 million, or $0.27 per share, in the year-ago period.