EXHIBIT 99.1
The TJX Companies, Inc. Reports Third Quarter Fiscal 2005 Results
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Nov. 16, 2004--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 third quarter ended October 30, 2004. Net
sales for the third quarter were $3.8 billion, a 13% increase over
last year, with consolidated comparable store sales increasing 4% over
the prior year. Net income was $201 million and diluted earnings per
share were $.41, a 14% increase over last year's results.
For the first nine months of fiscal 2005, net sales were $10.6
billion, up 15% over last year, and year-to-date consolidated
comparable store sales increased 5% over last year. Net income was
$487 million, and diluted earnings per share were $.98, up 21% over
last year.
Edmond English, President and Chief Executive Officer of The TJX
Companies, Inc., commented, "We are pleased with our third quarter
performance, with a comparable store sales increase and bottom-line
results in line with our expectations. Further, we achieved this
growth over significant growth last year in the third quarter. Our
very strong October, when customers responded to seasonably cool
weather and an exciting fashion offering, helped us achieve our goals.
"At The Marmaxx Group, the combination of T.J. Maxx and Marshalls,
third quarter sales increased 5% over last year and comparable store
sales increased 2%. Segment profit increased 7% to $284 million and
segment profit margin was 10.6%, both over strong performance last
year and well above plan. Sales of women's apparel were strong during
the quarter. We are delighted with the continued strength of our
expanded jewelry/accessories and footwear departments at T.J. Maxx and
Marshalls, respectively, which substantially benefited our business.
By the end of the quarter, we had a total of 292 expanded
jewelry/accessories departments at T.J. Maxx, which we believe will
continue to benefit us in the fourth quarter, and 61 expanded footwear
departments at Marshalls. Inventories are in great shape and we are in
an excellent position to flow fresh, exciting gift assortments in
apparel and non-apparel categories at compelling values to our stores
right up until the holidays."
English continued, "HomeGoods' third quarter sales increased 13%,
while comparable store sales decreased 1%. Segment profit of $12
million was below last year and our expectations. We continue to
refine the merchandise mix and work on improving performance at
HomeGoods. For the holidays, we are flowing fresh, decorative and gift
merchandise to our stores, offering great values on a unique and
rapidly changing assortment of home fashions.
"At our Canadian divisions, Winners and HomeSense, third quarter
sales increased 23% above last year and comparable store sales
increased 10% in U.S. dollars. In local currency, which we believe
more meaningfully reflects our operating performance, comparable store
sales increased 4%, which was close to plan and over a solid 6%
increase last year. Winners' segment profit for the quarter was $39
million, up 7% over last year, but below our expectations. We remain
pleased with our HomeSense concept, as this young business expands its
market presence in Canada.
"At T.K. Maxx, in the U.K. and Ireland, third quarter sales
increased 38% and comparable store sales increased 15% in U.S.
dollars. In local currency, T.K. Maxx's comparable store sales
increased 4%, which was below our expectations, but over a very strong
8% increase the prior year. We are pleased with the broad-based
strength across the majority of our merchandise classifications.
Segment profit for the quarter was $30 million, a 70% increase over
the prior year, and segment profit margin was 8.9%, well above last
year. Overall, we continue to be pleased with the growth of our T.K.
Maxx concept in the U.K. and Ireland."
English continued, "A.J. Wright posted a 25% increase in sales in
the third quarter and an in-line comparable store sales increase of 3%
over a very strong 14% increase last year. In August, sales were soft,
primarily because of economic factors that affected A.J. Wright's
price-sensitive customer base and caused bottom-line results for the
quarter to come in below our expectations and last year. As the
quarter progressed, comparable store sales improved significantly, as
this division did an excellent job of repositioning its mix to offer
great fashion at the right price for its customer base. We continue to
be excited about the growth potential for this concept, as we expand
into new markets across the country.
"At Bob's Stores, which we acquired in December 2003, total sales
were $81 million, which was essentially in line with plan, and
bottom-line results were slightly better than we had expected. Bob's
Stores benefited from strong sales of licensed team apparel on the
heels of the Red Sox' World Series win. Early reads from the two
stores opened this fall are very positive. We look forward to the
holiday selling season at Bob's Stores as a gift destination for
family, casual apparel and team gear."
English continued, "We continue to generate significant returns on
investment, which gives us the ability to grow our store base and the
infrastructure to support it, while simultaneously pursuing our
sizable share repurchase program and maintaining our strong financial
position. During the third quarter, we spent a total of $172 million,
which was more than we had planned, retiring 7.9 million shares of TJX
stock."
English concluded, "As we enter the fourth quarter, we look
forward to the opportunities we have in the holiday selling season at
all of our divisions. In particular, our Marmaxx jewelry/accessories
departments, which are important categories in the fourth quarter,
continue to be very strong. Our new e-commerce websites are up and
running for the holiday season, giving our customers another channel
through which to shop T.J. Maxx and HomeGoods. Additionally, at A.J.
Wright, we have year-over-year opportunities in expanded gift
assortments for the entire family, including toys and games. Finally,
we will continue flowing fresh, exciting gift assortments throughout
our off-price chains at great values throughout the holiday season, a
successful strategy that we believe will work very well for us again
this year."
The TJX Companies, Inc. is the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide. The Company
operates 767 T.J. Maxx, 695 Marshalls, 206 HomeGoods and 121 A.J.
Wright stores, as well as 33 Bob's Stores, in the United States. In
Canada, the Company operates 167 Winners and 39 HomeSense stores, and
in Europe, 160 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. ET 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 2005 third
quarter results, operations and business trends. The call will be
webcast simultaneously at www.tjx.com. A replay of the call will also
be available by dialing 800-216-3087 through Tuesday, November 23,
2004. Additionally, the Company expects to release its November 2004
sales on Thursday, December 2, 2004, at approximately 8:15 a.m. ET.
Concurrent with that press release, a recorded message with more
detailed information regarding TJX's November sales results,
operations and business trends will be available via the Internet at
www.tjx.com, or by calling (703) 736-7248 through Thursday, December
9, 2004. Archived versions of the Company's recorded messages and
conference calls are available at www.tjx.com after they are no longer
available by telephone.
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: our ability to continue successful expansion of our store
base; risks of expansion; our ability to successfully implement our
opportunistic inventory strategies and to effectively manage our
inventories; consumer confidence, demand, spending habits and buying
preferences; effects of unseasonable weather; competitive factors;
factors affecting availability of store and distribution center
locations on suitable terms; factors affecting our recruitment and
employment of associates; factors affecting expenses; success of our
acquisition and divestiture activities; our ability to successfully
implement technologies and systems; our ability to continue to
generate adequate cash flows; general economic conditions; potential
disruptions due to wars, natural disasters and other events beyond our
control; changes in currency and exchange rates; import risks; adverse
outcomes for any significant litigation; changes in laws and
regulations and accounting rules and principles; 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 in such
statements will not be realized.
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Thirteen Weeks Ended
-------------------------
October 30, October 25,
2004 2003
----------- -----------
Net sales $3,817,350 $3,387,452
Cost of sales, including buying and
occupancy costs 2,857,105 2,528,049
Selling, general and administrative
expenses 625,987 552,142
Interest expense, net 7,134 7,230
---------- ----------
Income before provision for income taxes 327,124 300,031
Provision for income taxes 126,269 117,198
---------- ----------
Net income $ 200,855 $ 182,833
========== ==========
Diluted earnings per share:
Net income $ .41 $ .36
Cash dividends declared per share $ .045 $ .035
Weighted average shares for diluted
earnings per share computation 490,014,852 511,062,352
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Thirty-Nine Weeks Ended
---------------------------
October 30, October 25,
2004 2003
----------- ----------
Net sales $10,584,374 $9,222,341
Cost of sales, including buying and
occupancy costs 8,004,658 6,968,737
Selling, general and administrative
expenses 1,764,212 1,545,851
Interest expense, net 20,710 21,436
----------- ----------
Income before provision for income taxes 794,794 686,317
Provision for income taxes 307,585 266,691
----------- ----------
Net income $ 487,209 $ 419,626
=========== ==========
Diluted earnings per share:
Net income $ .98 $ .81
Cash dividends declared per share $ .135 $ .105
Weighted average shares for diluted
earnings per share computation 498,063,292 515,153,194
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)
(In Millions)
October 30, October 25,
2004 2003
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 143.4 $ 87.6
Accounts receivable and other current assets 338.5 256.0
Merchandise inventories 2,785.4 2,242.9
-------- --------
Total current assets 3,267.3 2,586.5
-------- --------
Property and capital leases, net of depreciation 1,739.0 1,569.8
Other assets 111.9 112.5
Goodwill and tradename, net of amortization 183.6 179.4
-------- --------
TOTAL ASSETS $5,301.8 $4,448.2
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 100.0 $ 5.0
Accounts payable 1,578.0 1,156.5
Accrued expenses and other current liabilities 921.7 739.9
-------- --------
Total current liabilities 2,599.7 1,901.4
-------- --------
Other long-term liabilities 403.6 369.1
Non-current deferred income taxes, net 176.3 90.4
Long-term debt 571.7 662.0
Shareholders' equity 1,550.5 1,425.3
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,301.8 $4,448.2
======== ========
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Millions)
Thirty-Nine Weeks Ended
-----------------------
October 30, October 25,
2004 2003
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 487.2 $ 419.6
Depreciation and amortization 205.1 171.1
Deferred income tax provision 54.6 48.1
(Increase) in accounts receivable and other
current assets (75.5) (61.5)
(Increase) in merchandise inventories (822.5) (651.8)
Increase in accounts payable 606.7 323.2
Increase in accrued expenses and other
liabilities 201.1 37.1
Other, net 37.9 43.3
------- -------
Net cash provided by operating activities 694.6 329.1
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (286.4) (311.3)
Other .5 .4
------- -------
Net cash (used in) investing activities (285.9) (310.9)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt (5.0) (15.0)
Payments for repurchase of common stock (490.9) (390.0)
Cash dividends paid (61.7) (51.3)
Other 47.4 31.7
------- -------
Net cash (used in) financing activities (510.2) (424.6)
------- -------
Effect of exchange rate changes on cash (1.5) 1.7
------- -------
Net (decrease) in cash and cash equivalents (103.0) (404.7)
Cash and cash equivalents at beginning of year 246.4 492.3
------- -------
Cash and cash equivalents at end of period $ 143.4 $ 87.6
======= =======
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(In Thousands)
Thirteen Weeks Ended
-------------------------
October 30, October 25,
2004 2003
----------- -----------
Net sales:
Marmaxx $2,671,889 $2,537,299
Winners and HomeSense 351,347 284,570
T.K. Maxx 335,828 243,296
HomeGoods 248,738 219,232
A.J. Wright 128,688 103,055
Bob's Stores 80,860 -
---------- ----------
$3,817,350 $3,387,452
========== ==========
Segment profit or (loss):
Marmaxx $ 284,329 $ 264,878
Winners and HomeSense 39,002 36,295
T.K. Maxx 29,828 17,507
HomeGoods 11,753 16,438
A.J. Wright (5,773) (1,913)
Bob's Stores (2,392) -
---------- ----------
356,747 333,205
General corporate expense 22,489 25,944
Interest expense, net 7,134 7,230
---------- ----------
Income before provision for income taxes $ 327,124 $ 300,031
========== ==========
Stores in operation:
T.J. Maxx 767 744
Marshalls 695 664
Winners 167 159
HomeGoods 206 175
T.K. Maxx 160 143
A.J. Wright 121 95
HomeSense 39 24
Bob's Stores 33 -
----- -----
Total 2,188 2,004
===== =====
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(In Thousands)
Thirty-Nine Weeks Ended
-------------------------
October 30, October 25,
2004 2003
----------- -----------
Net sales:
Marmaxx $ 7,535,275 $6,988,848
Winners and HomeSense 913,538 732,147
T.K. Maxx 874,501 630,470
HomeGoods 697,249 589,269
A.J. Wright 357,796 281,607
Bob's Stores 206,015 -
----------- ----------
$10,584,374 $9,222,341
=========== ==========
Segment profit or (loss):
Marmaxx $ 758,825 $ 650,563
Winners and HomeSense 84,496 66,226
T.K. Maxx 41,304 26,607
HomeGoods 16,288 27,084
A.J. Wright (11,965) (2,419)
Bob's Stores (9,373) -
----------- ----------
879,575 768,061
General corporate expense 64,071 60,308
Interest expense, net 20,710 21,436
----------- ----------
Income before provision for income taxes $ 794,794 $ 686,317
=========== ==========
Stores in operation:
T.J. Maxx 767 744
Marshalls 695 664
Winners 167 159
HomeGoods 206 175
T.K. Maxx 160 143
A.J. Wright 121 95
HomeSense 39 24
Bob's Stores 33 -
----- -----
Total 2,188 2,004
===== =====
The TJX Companies, Inc. Notes To Consolidated
and Consolidated Subsidiaries Condensed Financial Statements
1. During the nine months ended October 30, 2004, TJX repurchased 20.8
million shares at a cost of $480.5 million. During the third
quarter ended October 30, 2004, TJX repurchased 7.9 million shares
of its common stock, at a cost of $172.0 million. Through October
30, 2004, under its current $1 billion multi-year stock repurchase
program, TJX has repurchased 13.3 million shares at a cost of
$299.2 million.
2. Effective with the third quarter ended October 30, 2004, TJX has
begun to accrue for inventory purchase obligations at the time the
inventory is shipped rather than when received and accepted by the
Company. As a result, TJX has recorded an increase to merchandise
inventory on its balance sheet as of October 30, 2004, currently
estimated at $210 million, to reflect this in-transit inventory,
as well as an equivalent increase to accounts payable at that
date. TJX is in the process of verifying the increase to inventory
and accounts payable at October 30, 2004 and evaluating whether
similar changes to balance sheets for prior periods will be
required. This accrual for inventory in transit affects only the
reported levels of inventory and accounts payable on the balance
sheet, and has no impact on TJX's operating results, cash flows,
liquidity or shareholders' equity.
3. 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