The TJX Companies, Inc. Reports January 2009 Sales; Raises Fourth Quarter and Full Year Outlook
FRAMINGHAM, Mass.--(BUSINESS WIRE)--The TJX Companies, Inc. (NYSE: TJX) today reported January 2009 sales results. Sales for the four-week period ended January 31, 2009, were $1.0 billion, a 6% decrease from the $1.1 billion achieved during the four-week period ended February 2, 2008. For the 52 weeks ended January 31, 2009, sales reached $18.7 billion, up 2% from the $18.4 billion achieved during the 52 weeks ended February 2, 2008. Sales for both the month and year-to-date periods include the negative impact of foreign currency translation (see below). Consolidated comparable store sales for the four-week period ended January 31, 2009, on a constant currency basis were down 4% compared to a 1% increase last year on the same basis.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “Consolidated comparable store sales for January were within our anticipated range. While January is typically a clearance month, I am pleased that we are entering February with inventories that are in excellent shape, clearance levels that were well below last year and extremely fresh assortments for the spring season. With merchandise margins stronger than anticipated, we now expect adjusted earnings per share to be near the high end of our previously anticipated range. We continue to believe that we are well positioned to combat the difficult consumer environment by offering great brands at excellent values.”
Impact of Foreign Currency Exchange Rates
For the four-week period ended January 31, 2009, foreign currency exchange rates had a five percentage-point negative impact on consolidated comparable store sales, as the Company expected. Including this negative impact, consolidated comparable store sales in U.S. dollars were down 9% for the period versus a 3% increase last year, which included an approximately one-and-a-half percentage-point positive impact from foreign exchange. As previously announced, beginning in Fiscal Year 2010, the Company will report comparable store sales results on a constant currency basis only, which it believes more closely reflects its operating performance and is consistent with the reporting practices of other multi-national retailers.
Updated Guidance for Fourth Quarter and Full Year Fiscal 2009
The Company now expects fourth quarter reported diluted earnings per share from continuing operations to be in the range of $.53 to $.54. This anticipated range now reflects an anticipated $.03 per share benefit due to a reduction in the reserve related to the previously announced computer intrusion(s), reflecting insurance recoveries as well as other adjustments. Excluding this benefit, the Company now expects adjusted diluted earnings per share from continuing operations for the fourth quarter to be in the range of $.50 to $.51, near the high end of the Company’s previous guidance, primarily due to stronger-than-expected merchandise margins. This range also includes an expected $.09 per share benefit from the 53rd week in the Company’s Fiscal 2009 calendar and a net $.11 per share negative impact from foreign currency exchange rates.
The Company now expects reported diluted earnings per share from continuing operations for the full Fiscal 2009 year to be in the range of $2.02 to $2.03. This anticipated range includes a net $.06 per share positive impact of non-operating items, including the $.02 per share tax-related benefit (detailed in the Q1FY09 Form 10-Q), the $.01 per share third quarter benefit due to a reduction in the reserve related to the previously announced computer intrusion(s) (detailed in the Q3FY09 Form 10-Q), as well as the anticipated fourth quarter $.03 per share benefit related to the computer intrusion(s) reserve referred to in the above paragraph. Excluding the net $.06 per share benefit of these non-operating items, the Company now expects adjusted diluted earnings per share from continuing operations for the full Fiscal 2009 year to be in the range of $1.96 to $1.97, at the high end of the Company’s previous guidance. This range also includes an expected $.09 per share benefit from the 53rd week in the Company’s Fiscal 2009 calendar and a net $.07 per share negative impact from foreign currency exchange rates.
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 874 T.J. Maxx, 806 Marshalls, 318 HomeGoods, and 135 A.J. Wright stores in the United States. In Canada, the Company operates 200 Winners, 75 HomeSense, and 2 STYLESENSE stores, and in Europe, 235 T.K. Maxx and 7 HomeSense stores. TJX’s press releases and financial information are also available on the Internet at www.tjx.com.
January and February 2009 Recorded Calls
A recorded message with more detailed information regarding TJX’s January 2009 sales results, operations and business trends is available via the Internet at www.tjx.com, or by calling (703) 736-7248 through Thursday, February 12, 2009. The Company expects to release its February 2009 sales results on Thursday, March 5, 2009, at approximately 8:15 a.m. ET. Concurrent with that press release, a recorded message with more detailed information regarding TJX’s February sales results, operations and business trends will be available via the Internet at www.tjx.com, or by calling (703) 736-7248 through Thursday, March 12, 2009.
Fourth Quarter and Fiscal Year 2009 Conference Call
Additionally, the Company expects to release its fourth quarter and Fiscal 2009 year-end earnings on Wednesday, February 25, 2009, 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 Fiscal 2009 results, operations and business trends, as well as expectations for Fiscal 2010. 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 Wednesday, March 4, 2009.
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: effects of current economic environment; 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.
