TJX blows out fourth quarter

By David Gill -- Home Textiles Today, 3/1/2004 12:00:00 AM

FRAMINGHAM, MASS. —

The TJX Companies, Inc. concluded 2003 with a 55 percent increase in fourth-quarter net income, which topped $238.7 million. The off-price retail firm also posted a 51.5 percent rise in its operating income, which reached $387.8 million.

For the year, TJX's net was nearly $658.4 million, 13.8 percent better than net income for 2002. Operating income also rose by 13.8 percent, to $1.1 billion. Net sales for the fourth quarter reached $4.1 billion, up 17.1 percent from the fourth quarter in 2002; and for the year, sales registered more than $13.3 billion, 11.2 percent higher than in 2002.

For Edmond English, TJX's president and CEO, 2003 was "a year of many accomplishments." English cited the company's growth in earnings per share of 18.5 percent and the 44 percent return on average shareholders' equity. The strong sales performance at the company's new stores made up for its below-expectations same-store sales growth of 1 percent for the year. TJX opened 219 new stores company-wide in 2003.

English also expressed his pleasure at the performance of each of the TJX divisions. He noted that HomeGoods, the home-furnishings specialty unit, boosted its segment profit by 55 percent for 2003, to nearly $22.8 million. "HomeGoods exhibited excellent execution of its merchandising and inventory strategies in 2003 and exceeded our profit objectives," English said.

TJX also saw strong profit growth at its Canadian divisions, Winners and HomeSense, whose net jumped 25 percent for the year. At the Marmaxx Group, by far the company's largest division with TJMaxx and Marshall's, segment profit rose 8 percent to $962 million for all of 2003. English also credited Marmaxx with good execution of its merchandising and inventory strategies, as well as its robust merchandising margins.

TJX successfully kept watch over its selling, general, and administrative expenses, which were 14.8 percent of net sales for the fourth quarter and 16.2 percent of sales for the year.

The TJX Companies, Inc.