TJX results show where consumers are spending
Off-price giant The TJX Companies attracted record numbers of bargain-hungry shoppers during the holiday period as the retailer reported record sales and profit sales for the fourth quarter.
For the period ended Jan. 30, net sales at TJX Cos. increased 8% to $8.96 billion, and same-store sales increased 6%.
Net income rose 2.8% to $666.5 million and diluted earnings per share were 99 cents, a 6% increase over the prior year’s 93 cents. Both income and sales exceeded expectations.
"Our fourth quarter 6% comp growth and 6% increase in earnings per share significantly exceeded our expectations," said Ernie Herrman, CEO and president, TJX Companies. "Once again, customer traffic drove our entire consolidated comp increase. It was also the primary driver of our comp increases at every division in the fourth quarter and full year as we continued delivering consumers a differentiated offering at extreme value. The year 2015 marks our 20th consecutive year of increases in comp sales and EPS! We have sustained profitable growth through many types of economic and retail climates and in different regions around the world, and we have great confidence in the future.”
For the year ended Jan. 30, 2016, net sales were $30.9 billion, a 6% increase over last year. Same-store sales increased 5% over the previous year’s 2% increase.
Net income for the fiscal year was $2.3 billion. Diluted earnings per share were $3.33, a 5% increase over the prior year’s adjusted $3.16, which excluded a 1 cent per share debt extinguishment charge from reported earnings per share of $3.15.
Herrman noted that the new is off to a strong start and said the company has many initiatives planned “to continue driving sales and traffic.”
“In addition to investing in our associates, our capital spending plans include new stores, store remodels, and our supply chain and infrastructure. Simultaneously, we plan to significantly increase our regular quarterly dividend and will continue to buy back shares at significant levels,” he said. “All of these actions underscore our confidence in our ability to continue delivering strong, profitable sales across all of our divisions and cash flow that enables us to both fund our continued growth and return value to our shareholders.”
For the fiscal year ending Jan. 28, 2017, the company expects diluted earnings per share to be in the range of $3.29 to $3.38, which would represent a 1% decrease to a 2% increase over the $3.33 in fiscal 2016. T
Off-price giant TJX Cos. attracted record numbers of bargain-hungry shoppers during the holiday period as the retailer reported record sales and profit sales for the fourth quarter.
For the period ended Jan. 30, net sales at TJX increased 8% to $8.96 billion, and same-store sales increased 6%.
Net income rose 2.8% to $666.5 million and diluted earnings per share were 99 cents, a 6% increase over the prior year’s 93 cents. Both income and sales exceeded expectations.
"Our fourth quarter 6% comp growth and 6% increase in earnings per share significantly exceeded our expectations," said Ernie Herrman, CEO and president, TJX Companies. "Once again, customer traffic drove our entire consolidated comp increase. It was also the primary driver of our comp increases at every division in the fourth quarter and full year as we continued delivering consumers a differentiated offering at extreme value. The year 2015 marks our 20th consecutive year of increases in comp sales and EPS! We have sustained profitable growth through many types of economic and retail climates and in different regions around the world, and we have great confidence in the future.”
For the year ended Jan. 30, 2016, net sales were $30.9 billion, a 6% increase over last year. Same-store sales increased 5% over the previous year’s 2% increase.
Net income for the fiscal year was $2.3 billion. Diluted earnings per share were $3.33, a 5% increase over the prior year’s adjusted $3.16, which excluded a 1 cent per share debt extinguishment charge from reported earnings per share of $3.15.
The retailer increased its store count during the year by a net of 219 stores, for a total of 3,614 stores
Herrman noted that the new year is off to a strong start and said the company has many initiatives planned “to continue driving sales and traffic.”
“In addition to investing in our associates, our capital spending plans include new stores, store remodels, and our supply chain and infrastructure,” he said. "Simultaneously, we plan to significantly increase our regular quarterly dividend and will continue to buy back shares at significant levels. “All of these actions underscore our confidence in our ability to continue delivering strong, profitable sales across all of our divisions and cash flow that enables us to both fund our continued growth and return value to our shareholders.”
For the fiscal year ending Jan. 28, 2017, the company expects diluted earnings per share to be in the range of $3.29 to $3.38, which would represent a 1% decrease to a 2% increase over the $3.33 in fiscal 2016. T
TJX Companies operates 1,156 T.J. Maxx, 1,007 Marshalls, 526 HomeGoods and eight Sierra Trading Post stores, as well as TJmaxx.com and Sierratradingpost.com in the United States.