Layaway sales are a small portion of the Company's revenue, and the accounting change has virtually no impact on the Company's annual sales and earnings (before cumulative effect). Seasonal influences associated with the Company's business, however, cause the accounting change to result in a shift of layaway sales and earnings among the various quarterly reporting periods. The impact on quarterly earnings per share, as a result of the accounting change is summarized as follows:
Impact of Layaway Accounting Change on EPS for
Fiscal Year Ending January 29, 2000
First quarter ($.01) (excludes one-time, non-cash charge for
cumulative affect of accounting change)
Second quarter 0
Third quarter ($.02)
Fourth quarter +$.03
Full Year 0
Prior year quarterly sales and earnings, restated on a pro forma basis, are impacted by amounts similar to the impact in the fiscal 2000 quarters; therefore, quarterly year-over-year comparisons are not affected.
Attached are schedules that provide restated sales and earnings for the first three quarters of fiscal 2000 and pro forma results by quarter for fiscal 1999.
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 632 T.J. Maxx, 505 Marshalls, 51 HomeGoods, and 15 A.J. Wright stores in the United States. In Canada, the Company operates 100 Winners, and in Europe, 54 T.K. Maxx stores. TJX's press releases and financial information are available on the Internet at www.tjx.com.
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY (Unaudited)
(Dollars in Thousands Except Per Share Amounts)
RESTATED RESTATED RESTATED
13 Weeks 13 Weeks 13 Weeks
Ended Ended Ended
May 1, July 31, October 30,
1999 1999 1999
Net sales $ 1,930,506 $ 2,102,851 $ 2,235,054
Cost of sales, including
buying and occupancy
costs 1,418,792 1,585,248 1,646,270
Selling, general and
administrative expenses 310,676 330,481 338,319
Interest expense (income),
net (734) 1,964 4,274
Income before income
taxes 201,772 185,158 246,191
Provision for income
taxes 79,498 69,277 94,474
Income before cumulative
effect of accounting
change 122,274 115,881 151,717
Cumulative effect of
accounting change, net of
income taxes (5,154) - -
Net income $ 117,120 $ 115,881 $ 151,717
Diluted earnings per share:
Income before cumulative
effect of accounting
change $0.38 $0.36 $0.48
Net income $0.36 $0.36 $0.48
Number of shares used for
earnings per share
calculations 325,296,145 320,450,875 316,313,009
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
RESTATED RESTATED RESTATED
13 Weeks 13 Weeks 13 Weeks
Ended Ended Ended
May 1, July 31, October 30,
1999 1999 1999
Net sales:
Off-price family apparel
stores $ 1,892,233 $ 2,059,924 $ 2,182,100
Off-price home fashion
stores 38,273 42,927 52,954
$ 1,930,506 $ 2,102,851 $ 2,235,054
Operating income (loss):
Off-price family apparel
stores $ 210,652 $ 202,166 $ 252,800
Off-price home fashion
stores (666) (989) 2,041
209,986 201,177 254,841
General corporate expense 8,296 13,402 3,724
Goodwill amortization 652 653 652
Interest expense (income), net (734) 1,964 4,274
Income before income
taxes $ 201,772 $ 185,158 $ 246,191
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY (Unaudited)
(Dollars in Thousands Except Per Share Amounts)
PROFORMA PROFORMA PROFORMA PROFORMA PROFORMA
13 Weeks 13 Weeks 13 Weeks 13 Weeks 52 Weeks
Ended Ended Ended Ended Ended
May 2, August 1, October 31, January 30, January 30,
1998 1998 1998 1999 1999
Net sales $ 1,753,748 $ 1,867,668 $ 2,003,503 $ 2,323,952 $ 7,948,871
Cost of sales,
including
buying and
occupancy
costs 1,317,033 1,420,382 1,466,280 1,753,990 5,957,685
Selling,
general and
administrative
expenses 299,835 303,332 322,531 360,290 1,285,988
Interest expense
(income), net (42) 1,425 1,507 (1,204) 1,686
Income from
continuing
operations
before
income taxes 136,922 142,529 213,185 210,876 703,512
Provision for
income
taxes 54,495 56,726 84,848 74,541 270,610
Income from
continuing
operations 82,427 85,803 128,337 136,335 432,902
Loss from
discontinued
operations
net of income
taxes - - (9,048) - (9,048)
Net income $ 82,427 $ 85,803 $ 119,289 $ 136,335 $ 423,854
Diluted earnings per share:
Income from
continuing
operations $0.24 $0.25 $0.39 $0.41 $1.29
Net income $0.24 $0.25 $0.36 $0.41 $1.27
Number of shares
used for earnings
per share cal-
culations 340,310,346 337,137,025 331,766,679 328,800,046 334,647,950
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
PROFORMA PROFORMA PROFORMA PROFORMA PROFORMA
13 Weeks 13 Weeks 13 Weeks 13 Weeks 52 Weeks
Ended Ended Ended Ended Ended
May 2, August 1, October 31, January 30, January 30,
1998 1998 1998 1999 1999
Net sales:
Off-price family
apparel
stores $ 1,728,366 $ 1,840,851 $ 1,971,707 $ 2,275,409 $ 7,816,333
Off-price
home fashion
stores 25,382 26,817 31,796 48,543 132,538
$ 1,753,748 $ 1,867,668 $ 2,003,503 $ 2,323,952 $ 7,948,871
Operating income (loss):
Off-price family
apparel
stores $ 158,490 $ 159,010 $ 225,186 $ 239,520 $ 782,206
Off-price
home
fashion
store (2,256) (2,246) (589) 141 (4,950)
156,234 156,764 224,597 239,661 777,256
General
corporate
expense 18,701 12,158 9,253 29,337 69,449
Goodwill
amortization 653 652 652 652 2,609
Interest
expense
(income), net (42) 1,425 1,507 (1,204) 1,686
Income from
continuing operations
before income
taxes $ 136,922 $ 142,529 $ 213,185 $ 210,876 $ 703,512
