Sales by Business Segment
The Company’s comparable store sales and net sales by division, in the second quarter, were as follows:
|Second Quarter||Second Quarter|
|Comparable Store Sales 1||Net Sales ($ in millions) 2,3|
|In the U.S.:|
1Comparable store sales outside the U.S. calculated on a constant currency basis, which removes the effect of changes in currency exchange rates. 2Sales in Canada and Europe include the impact of foreign currency exchange rates. See below. 3Figures may not foot due to rounding. 4Combination of T.J. Maxx and Marshalls. 5Net Sales for FY2014 include Sierra Trading Post.
Impact of Foreign Currency Exchange RatesChanges in foreign currency exchange rates affect the translation of sales and earnings of the Company’s international businesses into U.S. dollars for financial reporting purposes. In addition, ordinary-course, inventory-related hedging instruments are marked to market at the end of each quarter. Changes in currency exchange rates affect the magnitude of these translations and adjustments, and can have a material impact when there is significant volatility in currency exchange rates.