TJX reports flat 4Q sales, declines to give FY guidance

FRAMINGHAM, Mass. TJX reported that net sales for the fourth quarter were $5.4 billion, flat with last year. Consolidated comparable-store sales on a constant currency and 13-week basis decreased 2% in the fourth quarter 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.

Carol Meyrowitz, president and CEO of The TJX Companies, stated, “Since the Fall, given the extraordinary challenges that the economy has presented, we have held our own, with customer traffic being up. This speaks to our ability to maintain a compelling value proposition even in an extremely promotional environment and gain market share. We believe that our excellent values, as well as our business model, which is one of the most flexible in the world, and our very strong financial position, lie at the root of our ability to weather challenging times, today as they have in past recessions. For 2009, we will manage the business with conservative sales expectations, very lean inventories and aggressive cost control, which we believe will best position us in the short term. We are confident in our ability to endure this recession and believe that we will emerge from it in an even more advantageous competitive position, poised to continue pursuing our growth opportunities in North America and Europe.”

TJX said it would not provide specific sales and earnings guidance for fiscal 2010, citing the uncertain economic environment.

For the first quarter of Fiscal 2010, the company 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.