For the first nine months of fiscal 2000, diluted earnings per share were $1.24, 36% greater than the $.91 per share from continuing operations earned in the first nine months last year. Net income reached $399.3 million versus $297.3 million in the prior year after discontinued operations. Net sales for the nine month period reached $6.31 billion, an 11% increase over $5.67 billion last year.
Bernard Cammarata, Chairman and Chief Executive Officer of The TJX Companies, Inc. commented, "We are very pleased with our third quarter results. T.J. Maxx and Marshalls continued to perform well and Winners, HomeGoods and T.K. Maxx outperformed our goals. We saw strength in every geographic region, in most apparel categories and all non-apparel merchandise.
"At The Marmaxx Group, the combined entity of T.J. Maxx and Marshalls, operating income for the third quarter increased by 11%, total sales increased 9% to $1.99 billion and comparable store sales increased by 5%. Marmaxx sales this quarter were highlighted by strong performance in mens and childrens apparel as well as home fashions. Misses career wear sales lagged other classifications, as has generally been the case throughout the retail industry. Our continued ability to maintain separate identities at T.J. Maxx and Marshalls has enabled us to successfully achieve our objective of drawing customers to shop at both chains.
"Winners Apparel Ltd., the leading off-price retailer in Canada, saw operating income increase 30%, total sales increase 22% and comparable store sales increase 7% over 10% growth last year. These above-plan results were achieved despite the significant promotional activity in the Canadian department store arena during the third quarter."
Cammarata continued, "HomeGoods had an outstanding quarter, turning the corner into profitability. Total sales increased by 67% and comparable store sales increased 17% over a 10% gain last year. Our shift in emphasis from commodities to home decor, coupled with strong off-price buying and inventory management, has fueled higher sales volume and expanded margins. As a result, we are more enthusiastic than ever before about HomeGoods as a roll-out strategy, both in its free-standing and superstore formats.
"T.K. Maxx also had an excellent quarter, posting a 27% increase in total sales, a comparable store sales gain of 8% over last year's 12% and operating income that was above our expectations. These results document T.K. Maxx's increasing popularity and the customer excitement that is building around this concept in the U.K. and Europe. With an accelerating profit picture and a strong foundation from which to continue development, we are committed to rapidly expanding the chain throughout the U.K. and Ireland, as well as developing this business on the European mainland.
"At A.J. Wright, this young business continues to show great promise. This quarter, we expanded the chain into the Baltimore market and will shortly enter Detroit. As A.J. Wright enters its second year of operation, we are encouraged by the customer reaction this business is receiving and its positive sales trends.
"Our strong financial position enabled us to continue to aggressively execute our $750 million, multi-year stock buy-back program during the third quarter. Cumulatively, in 1999, we have spent $406 million, retiring over 13 million shares."
Cammarata concluded, "As we enter the fourth quarter, TJX is in excellent shape. Inventories remain fluid, enabling us to take the best advantage of opportunities in the marketplace and deliver exciting, quality merchandise to our customers at great values."
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 625 T.J. Maxx, 498 Marshalls, 46 HomeGoods and 11 A.J. Wright stores in the United States. In Canada, the Company operates 99 Winners, and in Europe, 53 T.K. Maxx stores. TJX's press releases and financial information are available on the Internet at www.tjx.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Certain statements contained in this release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: general economic conditions and consumer demand and consumer preferences and weather patterns in the U.S., Canada and Europe, particularly the United Kingdom; competitive factors, including continuing pressure from pricing and promotional activities of major competitors; impact of excess retail capacity and the availability of desirable store locations on suitable terms; the availability, selection and purchasing of attractive merchandise on favorable terms; import risks, including potential disruptions and duties, tariffs and quotas on imported merchandise, including economic and political problems in countries from which merchandise is imported; currency and exchange rate factors in the Company's foreign operations; risks in the development of new businesses and application of the Company's off-price strategies in foreign countries; acquisition and divestment activities; risks and uncertainties relating to the Year 2000 issue; and other factors that may be described in the Companys filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its 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
October 30, October 31,
1999 1998
Net sales $2,257,094 $2,026,578
Cost of sales, including buying
and occupancy costs 1,659,885 1,480,501
Selling, general and administrative
expenses 338,319 322,531
Interest expense, net 4,274 1,507
Income from continuing operations
before income taxes 254,616 222,039
Provision for income taxes 97,642 88,372
Income from continuing operations 156,974 133,667
(Loss) from discontinued operations,
net of income taxes - (9,048)
Net income $ 156,974 $ 124,619
Diluted earnings per common share:
Income from continuing operations $ .50 $ .40
Net income $ .50 $ .38
Cash dividends per common share $ .035 $ .03
Number of common shares for
diluted earnings per share
computations 316,313,009 331,766,679
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY (Unaudited)
(Dollars in Thousands Except Per Share Amounts)
39 Weeks Ended
October 30, October 31,
1999 1998
Net sales $6,307,822 $5,666,661
Cost of sales, including buying
and occupancy costs 4,674,496 4,229,252
Selling, general and administrative
expenses 979,476 925,698
Interest expense, net 5,504 2,890
Income from continuing operations
before income taxes 648,346 508,821
Provision for income taxes 249,031 202,511
Income from continuing operations 399,315 306,310
(Loss) from discontinued operations,
net of income taxes - (9,048)
Net income $ 399,315 $ 297,262
Diluted earnings per common share:
Income from continuing operations $ 1.24 $ .91
Net income $ 1.24 $ .88
Cash dividends per common share $ .105 $ .09
Number of common shares for
diluted earnings per share
computations 320,832,351 336,664,584
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR
BUSINESS SEGMENT
(Unaudited)
(In Thousands)
13 Weeks Ended
October 30, October 31,
1999 1998
Net sales:
Off-price family apparel stores $2,204,140 $1,994,782
Off-price home fashion stores 52,954 31,796
$2,257,094 $2,026,578
Operating income (loss):
Off-price family apparel stores $ 261,225 $ 234,040
Off-price home fashion stores 2,041 (589)
263,266 233,451
General corporate expense (a) 3,724 9,253
Goodwill amortization 652 652
Interest expense, net 4,274 1,507
Income from continuing operations
before income taxes $ 254,616 $ 222,039
Stores in operation end of period:
T.J. Maxx 625 600
Marshalls 498 471
Winners 99 87
HomeGoods 46 31
T.K. Maxx 53 39
A.J. Wright 11 5
Total 1,332 1,233
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR
BUSINESS SEGMENT
(Unaudited)
(In Thousands)
39 Weeks Ended
October 30, October 31,
1999 1998
Net sales:
Off-price family apparel stores $ 6,173,668 $ 5,582,666
Off-price home fashion stores 134,154 83,995
$ 6,307,822 $ 5,666,661
Operating income (loss):
Off-price family apparel stores $ 680,843 $ 558,871
Off-price home fashion stores 386 (5,091)
681,229 553,780
General corporate expense (a) 25,422 40,112
Goodwill amortization 1,957 1,957
Interest expense, net 5,504 2,890
Income from continuing operations
before income taxes $ 648,346 $ 508,821
Stores in operation end of period:
T.J. Maxx 625 600
Marshalls 498 471
Winners 99 87
HomeGoods 46 31
T.K. Maxx 53 39
A.J. Wright 11 5
Total 1,332 1,233
(a) The period ending October 30, 1999, includes a pre-tax gain of
$8.5 million associated with the Company's receipt of common
stock resulting from the demutualization of Manulife.
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)
(In Millions)
October 30, October 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 24.6 $ 155.7
Accounts receivable and other
current assets 189.3 162.7
Merchandise inventories 1,638.8 1,501.4
Total current assets 1,852.7 1,819.8
Property, net of depreciation 823.9 739.9
Other assets 50.3 20.6
Deferred income taxes 29.8 7.0
Goodwill and tradename, net of
amortization 194.0 199.8
TOTAL ASSETS $ 2,950.7 $ 2,787.1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 108.0 $ -
Current installments of long-term
debt 100.5 22.6
Accounts payable 747.0 709.3
Accrued expenses and other current
liabilities 599.5 622.8
Federal and state income taxes payable 73.6 83.1
Total current liabilities 1,628.6 1,437.8
Long-term debt 120.1 220.5
Shareholders' equity 1,202.0 1,128.8
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 2,950.7 $ 2,787.1
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Millions)
39 Weeks Ended
October 30, October 31,
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 399.3 $ 297.3
Loss from discontinued operations - 9.0
Depreciation and amortization 115.8 100.3
(Increase) in accounts receivable
and other current assets (93.6) (74.6)
(Increase) in merchandise
inventories (452.7) (311.2)
Increase in accounts payable 129.9 126.5
Increase (decrease) in accrued
expenses and other current
liabilities (25.3) 54.0
Increase in federal and state income
taxes payable 9.4 25.3
Other (26.2) (2.7)
Net cash provided by operating
activities 56.6 223.9
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (182.4) (152.3)
Proceeds from sale of other assets - 8.3
Net cash (used in) investing
activities (182.4) (144.0)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings of
short-term debt 108.0 -
Principal payments on long-term debt (.4) (1.2)
Common stock repurchased (405.6) (304.4)
Cash dividends (33.1) (31.9)
Other 20.3 8.9
Net cash (used in) financing
activities (310.8) (328.6)
Net (decrease) in cash and cash
equivalents (436.6) (248.7)
Cash and cash equivalents at
beginning of year 461.2 404.4
Cash and cash equivalents at end
of period $ 24.6 $ 155.7
The TJX Companies, Inc. Notes to Consolidated
and Consolidated Subsidiaries Condensed Financial Statements
1. During October 1998, the Company completed its second $250
million stock repurchase program and announced its intentions to
repurchase an additional $750 million of common stock over
several years. During the nine months ended October 30, 1999, the
Company repurchased 13.4 million shares at a cost of $405.6
million. Since the inception of the $750 million stock repurchase
program, the Company has repurchased 17.6 million shares at a
cost of $501.1 million.
