TJX Companies reports 6 percent rise in FY 2013

REPORT_ The TJX Companies announced sales and earnings results for the fiscal year and fourth quarter ended February 1, 2014. Net sales for the 52-week fiscal year were 27.4 billion dollars, a 6 percent increase over the 53-week fiscal period last year. Consolidated comparable

 store sales increased 3 percent on a 52-week comparable basis.

Net income for the 52-week fiscal year was 2.1 billion dollars, and diluted earnings per share were 2.94 dollars, a 15 percent increase over 2.55 dollars last year. Excluding a third quarter tax benefit of .11 dollars per share, adjusted diluted earnings per share were 2.83 dollars, a 15 percent increase over the prior year’s adjusted earnings per share of 2.47 dollars.

For

the 13-week fourth quarter ended February 1, 2014, net sales were 7.8 billion dollars, a 1 percent increase over the 14-week prior-year period. Consolidated comparable store sales increased 3 percent over the prior year on a 13-week comparable basis. Net income was 582 million dollars and diluted earnings per share were .81 dollars compared with last year’s .82 dollars per share. Diluted earnings per share increased 9 percent over last year’s adjusted .74 dollars.

Carol Meyrowitz, Chief Executive Officer of Framingham-based the TJX Companies, stated, “The year 2013 was another successful year for TJX, on top of many great years. We achieved EPS growth of 15 percent over last year’s adjusted 24 percent increase, and consolidated comp sales increased 3 percent over last year’s 7 percent increase.”

“As we approach 30 billion dollars in annual sales, we continue to see tremendous global growth potential for TJX. I am as confident as ever in our ability to keep driving profitable sales, while investing in our future growth, as we continue on the road to becoming a 40 billion dollars company and beyond,” adds Meyrowitz.

The gross profit margin for fiscal 2014 was 28.5 percent, up 0.1 percentage points over the prior year. The gross profit margin for the fourth quarter of fiscal 2014 was 27.6 percent, down 1.0 percentage points versus the prior year.

For the fiscal year ending January 31, 2015, the company expects diluted earnings per share to be in the range of 3.05 dollars to 3.19 dollars versus 2.94 dollars in fiscal 2014. Excluding the .11 dollars tax benefit in fiscal 2014 referred to above, this guidance would represent an 8 percent to 13 percent increase over the adjusted 2.83 dollars in fiscal 2014. This outlook is based upon estimated consolidated comparable store sales growth of 1 percent to 2 percent. For the first quarter of fiscal 2015, the company expects diluted earnings per share to be in the range of 0.65 dollars to 0.66 dollars, which would represent a 5 percent to 6 percent increase over last year’s 0.62 dollars per share. This outlook is based upon estimated consolidated comparable store sales growth of 1 percent to 2 percent.

Image: T.J. Maxx