Edmond English, President and Chief Executive Officer of The TJX Companies, Inc. stated, "We are very pleased with our strong October sales performance. As we expected, when the weather turned seasonably cold, we saw a good pick-up in apparel sales. Our inventories remain in excellent shape. This will enable us to continue to flow exciting selections of gift items in apparel and home fashions to our stores throughout the holiday selling season."
The Company today also announced that it reached a tentative agreement to settle all claims related to four California lawsuits which the plaintiffs sought to certify as class actions. The settlement is subject to final negotiation and submission to the court for approval. As previously disclosed, the lawsuits allege the Company improperly classified store managers and assistant store managers as exempt from California overtime laws. These suits are similar to numerous suits filed against retailers and others with operations in California. The Company indicated that it will take a charge of approximately $10 million after provision for income-taxes which will reduce fiscal 2003 third quarter earnings per share by $.02. While the Company denies the allegations underlying the suits, it has tentatively agreed to the settlement to avoid possible disruption to its business from protracted litigation.
Despite incurring this charge, the Company is maintaining its third quarter earnings estimate due to its above-plan October sales results and anticipates third quarter earnings per share to be at the lower end of its previously announced range of $.28 to $.30, versus the $.27 per share earned from continuing operations last 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 714 T.J. Maxx, 625 Marshalls, 139 HomeGoods and 68 A.J. Wright stores in the United States. In Canada, the Company operates 145 Winners and 15 HomeSense stores, and in Europe, 120 T.K. Maxx stores. TJX's press releases and financial information are also available on the Internet at www.tjx.com.
A recorded message with more detailed information on TJX's October 2002 sales results and its business is available by calling (703) 736-7248 or via the Internet at www.tjx.com. The recording will be available via the phone and Internet through Thursday, November 14, 2002. TJX expects to release its third quarter fiscal 2003 earnings on Tuesday, November 12, 2002 before 9:30 a.m. EST. Additionally, at 11:00 a.m. EST that day, Edmond English, President and Chief Executive Officer of The TJX Companies, will hold a conference call with stock analysts to discuss the Company's third quarter results. A real-time webcast of the call will be available at www.tjx.com. A replay of the call will also be available at www.tjx.com and at (888) 568-0353 through November 19, 2002.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Certain statements contained in this report 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 including effects of terrorist incidents and military actions and consumer demand and preferences; weather patterns in areas where we have concentrations of stores; competitive factors, including 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; the availability, selection and purchasing of attractive merchandise on favorable terms; our ability to effectively manage inventory levels; potential disruptions in supply and duties, tariffs and quotas on imported merchandise, as well as economic and political problems in countries from which merchandise is imported; currency and exchange rate factors in our foreign operations; expansion of our store base, development of new businesses and application of our off-price strategies in foreign countries; our acquisition and divestiture activities; our ultimate liability with respect to leases relating to discontinued operations including indemnification and other factors affecting or mitigating our liability; and other factors that are or may be described in the Company's 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.
