Exhibit 99.1
The TJX Companies, Inc. Reports First Quarter
Fiscal 2004 Results in Line with Expectations
FRAMINGHAM, Mass.--(BUSINESS WIRE)--May 13, 2003--The TJX
Companies, Inc. (NYSE: TJX), the leading off-price retailer of apparel
and home fashions in the U.S. and worldwide, today announced sales and
earnings results for the first quarter ended April 26, 2003. Net sales
for the first quarter were $2,789 million, a 5% increase over last
year. Consolidated comparable store sales decreased 2% versus last
year's strong 7% increase. Net income was $114 million and diluted
earnings per share were $.22, versus $.27 in the prior year.
Edmond English, President and Chief Executive Officer of The TJX
Companies, Inc. commented, "With a very strong first quarter last year
and a significant Easter calendar shift, we planned this year's first
quarter conservatively. Consolidated comp store sales came in slightly
below our expectations, with the unseasonably cold weather throughout
the quarter in most regions of the country negatively impacting our
sales performance. Our ability to take advantage of numerous in-season
buying opportunities has resulted in our merchandise margins coming in
stronger than plan and we have reported earnings that are near the
upper end of our anticipated range. We continue to believe that once
the weather turns warm, customer demand for spring and summer apparel
will improve.
"At The Marmaxx Group, the combination of T. J. Maxx and
Marshalls, we planned first quarter performance conservatively against
an outstanding performance last year. While Marmaxx's first quarter
sales, affected by the extended unseasonably cool weather, did not
meet our plan, bottom line was slightly ahead of our expectations.
Comparable store sales decreased 5% versus a 7% increase last year,
and segment profit was $194 million, which was below last year's very
strong performance. As previously stated, merchandise margins and
bottom-line performance at this division were aided by our ability to
take advantage of the very favorable buys that were available to us in
the marketplace."
English continued, "HomeGoods reported sales and segment profit
that were in line with expectations. Sales increased 17%, with
comparable store sales decreasing by 1% against an 11% increase last
year. Segment profit increased 12%. We continue to be very
enthusiastic about our HomeGoods division. New stores are doing
extremely well and customers love our unique concept, which offers
great values on a rapidly changing selection of exciting home
fashions.
"At our Canadian divisions, Winners and HomeSense, sales were in
line with our objectives and increased by 24%. Comparable store sales
were flat with last year's 10% increase in local currency. Segment
profit was $12 million, which was below our expectations and slightly
below the prior year. In addition to challenging comparisons to last
year's strong first quarter performance, as well as facing
unseasonable weather, Winners' results were negatively impacted by
higher-than-planned markdowns. As we begin the second quarter, Winners
is positioned well, with inventories that are fresh and well managed.
At HomeSense, our young Canadian home fashions business, we continue
to be excited with customer response to this concept.
"T.K. Maxx, in the U.K. and Ireland, had a strong quarter,
increasing sales by 37% and posting an above-plan comparable store
sales increase of 8% in local currency over a strong increase last
year. Segment profit exceeded our goals and improved significantly
over the prior year. We are very pleased with T.K. Maxx's successful
growth throughout the U.K. and Ireland."
English continued, "A.J. Wright, our youngest U.S. division,
achieved a 65% increase in sales and a comparable store sales gain of
6% on top of a 21% increase last year. Bottom-line performance
exceeded our plan and the prior year. We are particularly pleased with
the performance of A.J. Wright, given that it faced unseasonable
weather and the challenge of hurdling a strong performance last year.
New A.J. Wright stores are opening to great customer response and this
division is rapidly gaining recognition among moderate-income
shoppers.
"During the first quarter, our strong financial position allowed
us to continue with our aggressive share repurchase program. We spent
a total of $139 million, retiring 8.2 million shares of TJX stock."
English concluded, "We planned the first quarter conservatively,
and, for the most part, our performance came in as we had expected.
Although conservatively planned, merchandise margins were better than
anticipated because of the excellent buying opportunities upon which
we capitalized. This improving margin bodes well for our business, and
we believe that more seasonable weather will spur sales. The
combination of these factors, along with the flexibility of our
off-price business model, gives us confidence that we will see
stronger results as the year proceeds."
The TJX Companies, Inc. is the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide. The Company
operates 719 T.J. Maxx, 639 Marshalls, 146 HomeGoods and 83 A.J.
Wright stores in the United States. In Canada, the Company operates
154 Winners and 19 HomeSense stores, and in Europe, 123 T.K. Maxx
stores. TJX's press releases and financial information are also
available on the Internet at www.tjx.com.
At 11:00 a.m. EDT today, Edmond English, President and Chief
Executive Officer of The TJX Companies, Inc. will hold a conference
call with stock analysts to discuss the Company's fiscal 2004 first
quarter results. The call will be webcast simultaneously at
www.tjx.com and will remain available through Tuesday, May 20, 2003. A
replay of the call will also be available by dialing (800) 891-8246
through Tuesday, May 20, 2003. Additionally, TJX expects to release
its May 2003 sales results on Thursday, June 5, 2003, at approximately
8:15 a.m. EDT. Concurrent with the press release, a recorded message
with more detailed information regarding TJX's May sales results and
its business will be available by calling (703) 736-7248 or via the
Internet at www.tjx.com. That sales recording will remain available
via the phone and Internet through Thursday, June 12, 2003.
SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: Various statements made in this release are
forward-looking and involve a number of risks and uncertainties. All
statements that address activities, events or developments that we
intend, expect or believe may occur in the future are forward-looking
statements. The following are some of the factors that could cause
actual results to differ materially from the forward-looking
statements: general economic conditions including effects of wars,
other military actions and terrorist incidents; consumer confidence,
demand and preferences; weather patterns; competitive factors,
including continuing pressure from pricing and promotional activities
of competitors; the impact of excess retail capacity and the
availability of desirable store and distribution center locations on
suitable terms; recruiting quality sales associates and other
associates; the availability, selection and purchasing of attractive
merchandise on favorable terms and the effective management of
inventory levels; import risks, including potential disruptions in
supply and duties, tariffs and quotas on imported merchandise,
including economic, political or other problems in countries from
which merchandise is imported; currency and exchange rate factors in
our foreign and buying operations; ability to continue successful
expansion of our store base at the rate projected; risks in the
development of new businesses and application of our off-price
strategies in additional foreign countries; factors affecting expenses
including pressure on wages and benefits; our acquisition and
divestment activities; our ultimate liability with respect to leases
relating to discontinued operations including indemnification and
other factors affecting or mitigating our liability, and; changes in
laws and regulations; and other factors that may be described in our
filings with the Securities and Exchange Commission. We do not
undertake to publicly update or revise our forward-looking statements
even if experience or future changes make it clear that any projected
results expressed or implied therein will not be realized.
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
13 Weeks Ended
April 26, April 27,
2003 2002
Net sales $ 2,788,705 $ 2,665,687
Cost of sales, including buying and
occupancy costs 2,113,630 1,988,830
Selling, general and administrative
expenses 482,891 433,016
Interest expense, net 6,978 6,194
Income before provision for income taxes 185,206 237,647
Provision for income taxes 71,675 90,544
Net income $ 113,531 $ 147,103
Diluted earnings per share:
Net income $ .22 $ .27
Cash dividends declared per share $ .035 $ .03
Weighted average shares for diluted
earnings per share computation 520,504,200 547,122,216
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)
(In Millions)
April 26, April 27,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $ 171.5 $ 516.9
Accounts receivable and other current assets 235.7 209.7
Current deferred income taxes, net 10.1 12.7
Merchandise inventories 1,904.9 1,528.8
Total current assets 2,322.2 2,268.1
Property and capital leases, net of
depreciation 1,439.3 1,220.4
Other assets 111.5 81.1
Non-current deferred income taxes, net - 23.4
Goodwill and tradename, net of amortization 179.3 179.1
TOTAL ASSETS $ 4,052.3 $ 3,772.1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 15.0 $ -
Accounts payable 1,020.2 858.2
Accrued expenses and other current
liabilities 574.8 467.6
Income taxes payable 87.0 115.1
Total current liabilities 1,697.0 1,440.9
Other long-term liabilities 263.4 274.0
Non-current deferred income taxes, net 56.0 -
Long-term debt 666.8 673.8
Shareholders' equity 1,369.1 1,383.4
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,052.3 $ 3,772.1
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Millions)
13 Weeks Ended
April 26, April 27,
2003 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 113.5 $ 147.1
Depreciation and amortization 55.6 49.4
Deferred income tax provision 16.4 2.6
(Increase) in accounts receivable and other
current assets (58.7) (59.9)
(Increase) in merchandise inventories (339.3) (66.2)
Increase in accounts payable 201.3 93.8
Increase in income taxes payable 24.7 73.3
(Decrease) in accrued expenses and other
liabilities (94.4) (60.2)
Other, net 10.5 7.5
Net cash (used in) provided by operating
activities (70.4) 187.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (87.3) (70.8)
Other .2 .2
Net cash (used in) investing activities (87.1) (70.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for repurchase of common stock (149.5) (90.9)
Cash dividends paid (15.6) (12.2)
Other 1.9 9.7
Net cash (used in) financing activities (163.2) (93.4)
Effect of exchange rate changes on cash (.1) .7
Net (decrease) increase in cash and cash
equivalents (320.8) 24.1
Cash and cash equivalents at beginning of year 492.3 492.8
Cash and cash equivalents at end of period $ 171.5 $ 516.9
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(Dollars In Thousands)
13 Weeks Ended
April 26, April 27,
2003 2002
Net sales:
Marmaxx $ 2,150,086 $ 2,172,887
Winners (a) 201,783 162,328
T.K. Maxx 177,253 129,759
HomeGoods 177,062 150,834
A.J. Wright 82,521 49,879
$ 2,788,705 $ 2,665,687
Segment profit or (loss):
Marmaxx $ 193,885 $ 250,104
Winners (a) 11,793 13,066
T.K. Maxx 916 (3,774)
HomeGoods 4,532 4,062
A.J. Wright (2,345) (3,137)
208,781 260,321
General corporate expense 16,597 16,480
Interest expense, net 6,978 6,194
Income before provision for income taxes $ 185,206 $ 237,647
Stores in operation end of period:
T.J. Maxx 719 701
Marshalls 639 589
Winners 154 137
HomeGoods 146 125
T.K. Maxx 123 105
A.J. Wright 83 52
HomeSense 19 11
Total 1,883 1,720
(a) Includes the operating results of HomeSense stores.
The TJX Companies, Inc. Notes To Consolidated
and Consolidated Subsidiaries Condensed Financial Statements
1. During the first quarter ended April 26, 2003, TJX repurchased 8.2
million shares of its common stock, for a cost of $139.3 million.
Through April 26, 2003, under its current $1 billion multi-year
stock repurchase program, TJX has repurchased 24.3 million shares
at a cost of $442.6 million.
2. Certain amounts in the prior period's financial statements have
been reclassified to be consistent with the current year's
presentation.
CONTACT: The TJX Companies, Inc.
Sherry Lang, Vice President
Investor and Public Relations
(508) 390-2323