TJX 4Q sales flat, Saks posts 4Q loss

TJX reported that net sales for the fourth quarter were $5.4 billion, flat with last year, and comparable-store sales declined 2%, versus a 2% increase in the same period last year. Net income from continuing operations was $251 million, and diluted earnings per share from continuing operations were 58 cents, compared with 67 cents last year.

For the first quarter of fiscal 2010, TJX said it expects earnings per share from continuing operations in the range of 32 cents to 38 cents on a reported basis, versus 44 cents per share last year.

Over at Saks, the company posted a net loss of $98.8 million, or 72 cents per share, for the fourth quarter. For the prior year’s fourth quarter, ended Feb. 2, 2008, the company recorded net income of $39.5 million, or 26 cents per share.

Saks’ comparable-store sales declined 15.3% in the fourth quarter, compared with a 9% comparable-store sales gain reported in the same period last year.

Considering how hard apparel sales have been hit in the past few months, TJX performed fairly well. The same, however, could not be said for Saks.

Though Saks normally may claim a different shopper than TJX, in today’s economy, everyone is looking for a bargain, and Saks just hasn’t gotten it right. Its OFF 5th model isn’t resonating with consumers, and even after the economy improves, the company will need to find a better way to succeed at mass retail.