TJX continues to show strength

FRAMINGHAM, Mass. TJX reported for the 13-week fourth quarter ended Jan. 30, net sales were $5.9 billion, a 10% increase over the 14-week prior-year period. Consolidated comparable-store sales increased 12% over the prior year on a 13-week comparable basis. Net income from continuing operations was $395 million, and diluted earnings per share from continuing operations were 94 cents compared with 58 cents in the prior year.

Net sales for the 52-week fiscal year were $20.3 billion, a 7% increase over the 53-week fiscal period last year. Consolidated comparable-store sales increased 6% on a 52-week comparable basis. Net income from continuing operations for the 52-week fiscal year was $1.2 billion, and diluted earnings per share from continuing operations were $2.84 compared with $2.08 last year.

Carol Meyrowitz, president and CEO of The TJX Companies, stated, “In 2009, one of the worst economic periods that the U.S., Canada, and Europe have seen, TJX generated superior earnings growth, with every division delivering top- and bottom-line results well above plan. Sales growth was driven by a large increase in transactions as we attracted new customers from all income levels with our compelling values. We aggressively managed our inventories which, combined with cost reduction programs, helped fuel strong increases in profitability.”

For the fiscal year ending Jan. 29, 2011, the company expects diluted earnings per share from continuing operations to be in the range of $3.06 to $3.20, which represents an 8% to 13% increase over the $2.84 in earnings per share from continuing operations in fiscal 2010. This range is based upon estimated consolidated comparable-store sales growth of 1% to 2%.

For the first quarter of fiscal 2011, the company expects diluted earnings per share from continuing operations in the range of 60 cents to 65 cents, which represents a 22% to 33% increase over 49 cents per share last year. This outlook is based upon estimated consolidated comparable-store sales growth of 3% to 5%.