The TJX Companies, Inc. Reports September 2008 Sales; Updates View of Third Quarter and Full Year
FRAMINGHAM, Mass.--(BUSINESS WIRE)--The TJX Companies, Inc. (NYSE: TJX) today reported September 2008 sales results. Sales for the five-week period ended October 4, 2008, were $1.83 billion, up 3% over the $1.78 billion achieved during the five-week period ended October 6, 2007. For the 35 weeks ended October 4, 2008, sales reached $12.2 billion, up 6% over the $11.5 billion achieved during the 35 weeks ended October 6, 2007. Consolidated comparable store sales for the five-week period ended October 4, 2008, decreased 1% compared to last year. Foreign currency exchange rates negatively impacted September comparable store sales by two percentage points, which was unanticipated in the Company’s prior guidance. Excluding the impact of foreign currency exchange rates, consolidated comparable store sales increased 1% for the month. For the 35-week period ended October 4, 2008, consolidated comparable store sales increased 3% over last year, with a neutral impact from foreign currency exchange rates.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “Although September consolidated comparable store sales were below plan, customer transactions were up across virtually all divisions. Also, despite economic concerns internationally, our divisions in these markets had strong performance. With the volatile economic environment in the U.S. and a generally warmer September than last year, we were pleased to see sales trends in the U.S. dramatically improve at the end of the month as the weather turned more seasonable in key regions. While we believe that consumers are worried, we also believe that with the right execution of our resilient business model, our financial strength, extremely well controlled inventories, strong merchandise margins, and the excellent values we offer our customers, we are in an excellent position going into the holiday season.”
Updated Guidance
The Company is lowering its guidance for third quarter earnings per share from continuing operations to the range of $.55 to $.58 primarily to reflect lower-than-expected sales. This range is based upon estimated consolidated comparable store sales growth for the quarter of approximately flat to 1%. It assumes a negative impact from foreign exchange rates of $.01 per share and represents a 2% to 7% increase over the $.54 in diluted earnings per share in the prior year.
Reflecting this updated guidance, the Company now expects full year Fiscal 2009 diluted earnings per share from continuing operations to be in the range of $2.26 to $2.31 with consolidated comparable store sales growth of approximately 2%. This guidance includes an expected $.09 per share benefit from the 53rd week in the Company’s Fiscal 2009 fourth quarter and the $.02 per share benefit from unanticipated tax-related adjustments in the first quarter of Fiscal 2009. Last year’s results included a charge of $.25 per share related to the previously announced computer intrusion(s). Excluding these items, full year Fiscal 2009 adjusted diluted earnings per share from continuing operations are estimated to be in the range of $2.15 to $2.20, an increase of 11% to 14% over the prior year’s adjusted $1.93.
Impact of Foreign Currency Exchange Rates
In addition to its U.S. businesses, the Company operates stores in Canada, the U.K., Ireland, and Germany, and is therefore affected by foreign exchange rate fluctuations. It is important to note that translation of foreign currency generally affects the Company’s sales more than profit, as sales and expenses are translated at approximately the same rates. As noted above, foreign exchange rates negatively impacted consolidated comparable store sales in September by two percentage points. While the Company anticipates foreign exchange rates to negatively impact third quarter consolidated comparable store sales by approximately two percentage points, the impact on earnings per share from continuing operations is expected to be $.01 per share, as noted above.
About The TJX Companies, Inc.
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 864 T.J. Maxx, 805 Marshalls, 309 HomeGoods, and 134 A.J. Wright stores in the United States. In Canada, the Company operates 199 Winners, 75 HomeSense, and 2 STYLESENSE stores, and in Europe, 233 T.K. Maxx and 6 HomeSense stores. TJX’s press releases and financial information are also available on the Internet at www.tjx.com.
September and October Fiscal 2009 Recorded Calls
A recorded message with more detailed information regarding TJX’s September 2008 sales results, operations and business trends is available via the Internet at www.tjx.com, or by calling (703) 736-7248 through Thursday, October 16, 2008. The Company expects to release its October 2008 sales results on Thursday, November 6, 2008, at approximately 8:15 a.m. ET. Concurrent with that press release, a recorded message with more detailed information regarding TJX’s October sales results, operations and business trends will be available via the Internet at www.tjx.com, or by calling (703) 736-7248 through Thursday, November 13, 2008.
Third Quarter Fiscal 2009 Conference Call
Additionally, the Company expects to release its third quarter earnings on Tuesday, November 11, 2008, before 9:30 a.m. ET. At 11:00 a.m. ET that day, Carol Meyrowitz, President and Chief Executive Officer of TJX, will hold a conference call with stock analysts to discuss the Company’s third quarter Fiscal 2009 sales results, operations and business trends. 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 or by dialing (866) 367-5577 through Tuesday, November 18, 2008.
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. The Company routinely posts information that may be important to investors in the Investor Information section at www.tjx.com. The Company encourages investors to consult that section of its website regularly.
SAFE HARBOR STATEMENT 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: matters relating to the computer intrusion(s) including potential losses that could differ from our reserve, potential effects on our reputation and sales, compliance with orders, and other consequences to the value of our Company and related value of our stock; our ability to successfully expand our store base and increase comparable store sales; risks of expansion and costs of contraction; risks inherent in foreign operations; our ability to successfully implement our opportunistic buying strategies and to manage our inventories effectively; successful advertising and promotion; consumer confidence, demand, spending habits and buying preferences; effects of unseasonable weather; competitive factors; availability of store and distribution center locations on suitable terms; our ability to recruit and retain associates; factors affecting expenses; success of our acquisition and divestiture activities; our ability to successfully implement technologies and systems and protect data; our ability to continue to generate adequate cash flows; our ability to execute our share repurchase program; availability and cost of financing; general economic conditions, including fluctuations in the price of oil; potential disruptions due to wars, natural disasters and other events beyond our control; changes in currency and exchange rates; issues with merchandise quality and safety; import risks; adverse outcomes for any significant litigation; compliance with and changes in laws and regulations and accounting rules and principles; adequacy of reserves; asset impairments and other charges; closing adjustments; failure to meet market expectations; 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.
