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TheStreet Open House

The TJX Companies, Inc. Reports Strong 18% Increase In Q2 FY14 EPS; Raises Full-Year Guidance

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 1,052 T.J. Maxx, 914 Marshalls, 430 HomeGoods and 4 Sierra Trading Post stores as well as SierraTradingPost.com in the United States; 226 Winners, 89 HomeSense, and 22 Marshalls stores in Canada; and 355 T.K. Maxx and 27 HomeSense stores in Europe. TJX’s press releases and financial information are also available at www.tjx.com.

Fiscal 2014 Second Quarter Earnings Conference Call

At 11:00 a.m. ET today, Carol Meyrowitz, Chief Executive Officer of TJX, will hold a conference call with stock analysts to discuss the Company’s second quarter Fiscal 2014 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 by dialing (866) 367-5577 through Tuesday, August 27, 2013, or at www.tjx.com.

Non-GAAP Financial Information

The Company has used non-GAAP financial measures in this press release. Adjusted financial measures refer to financial information adjusted to exclude from financial measures prepared in accordance with accounting principles generally accepted in the United States (GAAP) items identified in the attached appendix. The Company believes that the presentation of adjusted financial results provides additional information on comparisons between periods including underlying trends of its business by excluding certain items that affect overall comparability. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Important Information at Website

Archived versions of the Company’s conference calls are available at the Investor Information section of www.tjx.com after they are no longer available by telephone as well as reconciliations of non-GAAP financial measures to GAAP financial measures, and other financial information. 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.

Forward-looking Statement

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: execution of buying strategy and inventory management; operational expansion and management of large size and scale; customer trends and preferences; market, banner, geographic and category expansion; marketing, advertising and promotional programs; competition; personnel recruitment and retention and costs of labor; global economic conditions and consumer spending; data security; information systems and new technology; seasonal influences; adverse or unseasonable weather; serious disruptions and catastrophic events; corporate and banner reputation; merchandise quality and safety; expanding international operations; merchandise importing; commodity pricing; fluctuations in currency exchange rates; fluctuations in quarterly operating results and market expectations; acquisitions, business investments and divestitures; compliance with laws, regulations and orders; changes in laws and regulations; outcomes of litigation, legal matters and proceedings; tax matters; real estate activities; cash flow 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.

 

The TJX Companies, Inc. and Consolidated Subsidiaries

Financial Summary

(Unaudited)

(In Thousands Except Per Share Amounts)

   
13 Weeks Ended   26 Weeks Ended
August 3,

2013

  July 28,

2012

  August 3,

2013

  July 28,

2012

   
Net sales $ 6,442,424 $ 5,945,559 $ 12,632,033 $ 11,743,645
 
Cost of sales, including buying and occupancy costs 4,586,739 4,275,073 9,020,272 8,440,801
Selling, general and administrative expenses 1,074,320 978,514 2,093,229 1,920,640
Interest expense, net   8,919   9,182   14,201   18,009
 
Income before provision for income taxes 772,446 682,790 1,504,331 1,364,195
Provision for income taxes   292,887   261,698   571,882   523,903
 
Net income $ 479,559 $ 421,092 $ 932,449 $ 840,292
 
Diluted earnings per share $ 0.66 $ 0.56 $ 1.28 $ 1.11
 
Cash dividends declared per share $ 0.145 $ 0.115 $ 0.29 $ 0.23
 
Weighted average common shares – diluted 728,599 751,243 730,750 753,721
 

 

The TJX Companies, Inc. and Consolidated Subsidiaries

Condensed Balance Sheets

(Unaudited)

(In Millions)

 
   

August 3,2013

July 28,2012

 
ASSETS
Current assets:
Cash and cash equivalents $ 1,858.8 $ 1,620.4
Short-term investments 231.2 176.3
Accounts receivable and other current assets 580.2 452.8
Current deferred income taxes, net 91.5 83.5
Merchandise inventories   3,188.5   3,007.7
 
Total current assets   5,950.2   5,340.7
 
Property and capital leases, net of depreciation 3,377.8 2,855.8
Other assets 283.9 260.1
Goodwill and tradename, net of amortization   314.1   180.0
 
TOTAL ASSETS $ 9,926.0 $ 8,636.6
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 1,940.3 $ 1,863.1
Accrued expenses and other current liabilities   1,502.6   1,362.4
 
Total current liabilities   3,442.9   3,225.5
 
Other long-term liabilities 983.5 860.1
Non-current deferred income taxes, net 375.3 386.5
Long-term debt 1,274.2 774.5
 
Shareholders’ equity   3,850.1   3,390.0
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 9,926.0 $ 8,636.6
 

 

The TJX Companies, Inc. and Consolidated Subsidiaries

Condensed Statements of Cash Flows

(Unaudited)

(In Millions)

 
  26 Weeks Ended

August 3,2013

 

July 28,2012

 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 932.4 $ 840.3
Depreciation and amortization 266.0 246.5
Deferred income tax provision 42.8 30.8
Share-based compensation 35.7 29.9
(Increase) decrease in accounts receivable and other assets (34.2 ) 32.6
(Increase) in merchandise inventories (198.4 ) (59.7 )
Increase in accounts payable 24.3 218.6
(Decrease) in accrued expenses and other liabilities (226.6 ) (10.7 )
Other   (30.7 )   (20.6 )
 
Net cash provided by operating activities   811.3     1,307.7  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (497.0 ) (438.9 )
Purchases of short-term investments (196.2 ) (136.6 )
Sales and maturities of short-term investments 189.4 54.0
Other   2.7     0.5  
Net cash (used in) investing activities   (501.1 )   (521.0 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 499.6 -
Payments for repurchase of common stock (627.6 ) (597.0 )
Proceeds from issuance of common stock 64.3 61.3
Cash dividends paid (187.3 ) (155.7 )
Other   28.9     24.5  
Net cash (used in) financing activities   (222.1 )   (666.9 )
 
Effect of exchange rate changes on cash   (41.3 )   (6.5 )
 
Net increase in cash and cash equivalents 46.8 113.3
Cash and cash equivalents at beginning of year   1,812.0     1,507.1  
 
Cash and cash equivalents at end of period $ 1,858.8   $ 1,620.4  
 

 

The TJX Companies, Inc. and Consolidated Subsidiaries

Selected Information by Major Business Segment

(Unaudited)

(In Thousands)

 
  13 Weeks Ended   26 Weeks Ended

August 3,

2013

  July 28,

2012

August 3,

2013

  July 28,

2012

Net sales:    
In the United States:
Marmaxx $ 4,295,346 $ 3,976,051 $ 8,431,095 $ 7,865,109
HomeGoods 690,123 597,714 1,379,653 1,193,436
TJX Canada 679,364 660,703 1,324,860 1,300,912
TJX Europe   777,591   711,091 1,496,425   1,384,188
Total net sales $ 6,442,424 $ 5,945,559 $ 12,632,033 $ 11,743,645
 
Segment profit:
In the United States:
Marmaxx $ 647,978 $ 581,379 $ 1,282,278 $ 1,186,007
HomeGoods 81,170 60,531 170,233 129,964
TJX Canada 90,776 92,661 165,082 163,726
TJX Europe   40,529   24,724 56,893   36,453
Total segment profit 860,453 759,295 1,674,486 1,516,150
 
General corporate expenses 79,088 67,323 155,954 133,946
Interest expense, net   8,919   9,182 14,201   18,009
Income before provision for income taxes $ 772,446 $ 682,790 $ 1,504,331 $ 1,364,195
 




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