TJX: HomeGoods Sales Up, Comps Flat
Staff -- Home Textiles Today, 8/22/2005
Framingham, Mass. —The TJX Companies, Inc. reported that sales during the second quarter at its HomeGoods stores were up 17 percent, though comp-store sales at the unit were flat with last year.
Overall net sales for the second quarter rose 6.8 percent, to $3.6 billion from $3.4 billion last year.
Comp-store sales for the period improved 1 percent and net income was $123 million, up 4.1 percent from $118 million last year.
For the first half of the year, net sales were up 7.9 percent, to $7.3 billion from $6.8 billion a year ago. Comp-store sales for the six-month period were up 2 percent, but net income fell 4.8 percent, to $272 million from $286 million last year.
Edmond English, president and CEO, commented, “Second quarter earnings were less than we had originally planned, primarily due to comparable-store sales growth that did not meet our expectations. As we enter the back half of the year, we are focused on improving comparable store sales, and believe we have solid opportunities across our businesses.
“At The Marmaxx Group — the combination of T.J. Maxx and Marshalls — second quarter sales increased 4 percent over last year and comparable-store sales increased 2 percent. Segment profit was up over last year, in line with plan, and segment profit margin also met our expectations. We are on track to net a total of 47 new stores for The Marmaxx Group this year.”
English added that bottom-line results at HomeGoods stores were below last year, and the company now expects to open 37 new HomeGoods stores this year.
He continued: “We continue to generate significant returns on investment, which gives us the ability to grow our businesses while simultaneously pursuing our sizable share repurchase program and maintaining our strong financial position. During the second quarter, we spent a total of $127 million, retiring 5.5 million shares of TJX stock. Year-to-date, we have spent a total of $390 million in repurchases of TJX stock and have retired a total of 16.4 million shares.”
| Qtr. ended 7/30 (x000) | 2005 | 2004 | %change |
| Sales | $3,647,866 | $3,414,287 | 6.8 |
| Oper. Income (EBIT) | 200,491 | 193,336 | 3.7 |
| Net Income | 123,141 | 118,242 | 4.1 |
| Per Share (diluted) | 0.25 | 0.23 | 8.7 |
| Average Gross Margin | 23.2% | 23% | -- |
| SG&A Expenses | 17.5% | 17.1% | -- |
| 26 Weeks ended 7/30 (x000) | 2005 | 2004 | %change |
| Sales | $7,299,696 | $6,767,024 | 7.9 |
| Oper. Income (EBIT) | 443,209 | 467,670 | -5.2 |
| Net Income | 272,485 | 286,354 | -4.8 |
| Per Share (diluted) | 0.55 | 0.56 | -1.8 |
| Average Gross Margin | 23.5% | 23.9% | -- |
| SG&A Expenses | 17.3% | 16.8% | -- |
