Inventory

Total inventories as of October 27, 2012, were $3.3 billion, compared with $3.7 billion at the end of the third quarter last year. Consolidated inventories on a per-store basis, including the distribution centers, at October 27, 2012, were down 14% (down 13% on a constant currency basis) versus being up 14% at the end of the third quarter last year. Further, the Company’s third quarter store inventory turns were faster than the prior year. The Company enters the fourth quarter with excellent inventory levels and is very well positioned to buy into the plentiful opportunities in the marketplace and continue shipping ever-changing merchandise selections to its stores throughout the holiday selling season.

Share Repurchases

During the third quarter, the Company spent a total of $400 million in repurchases of TJX stock, retiring 8.9 million shares. For the first nine months of Fiscal 2013, the Company has spent a total of $950 million in repurchases of TJX stock, retiring 22.5 million shares, and it continues to expect to repurchase approximately $1.2 billion to $1.3 billion of TJX stock in Fiscal 2013. The Company may adjust the amount of this spending up or down.

Fourth Quarter and Full Year Fiscal 2013 Outlook

For the fourth quarter of Fiscal 2013, the Company expects diluted earnings per share to be in the range of $.72 to $.75, which would represent a 16% to 21% increase over $.62 per share last year. This outlook is based upon estimated consolidated comparable store sales growth of flat to 2%. The Company’s fourth quarter guidance includes an expected $.07 per share benefit from the 53 rd week in the Company’s Fiscal 2013 calendar. Excluding this benefit, the adjusted guidance in the range of $.65 to $.68 represents a 5% to 10% increase over the prior year.

For the fiscal year ending February 2, 2013, the Company is raising its guidance for diluted earnings per share by $.01. The Company now expects diluted earnings per share for the full year to be in the range of $2.45 to $2.48, compared with $1.93 on a reported basis in Fiscal 2012. This guidance represents a 23% to 25% increase over the prior year’s adjusted earnings per share from continuing operations of $1.99 (detailed below) and is now based upon estimated consolidated comparable store sales growth of 5% to 6%. In addition, the Company’s full-year guidance includes the $.03 per share negative impact from the third quarter items discussed above.
 
Full Year
FY2013E   FY2012
    (53 weeks)   (52 weeks)

EPS from continuing operations
$2.45 - $2.48 $1.93
Impact of A.J. Wright Closings

-
$.04
Store Conversion/Grand Re-Openings Costs

-
$.02
Adjusted EPS from continuing operations $2.45 - $2.48 $1.99
 

The Company’s full-year guidance also includes an expected $.07 per share benefit from the 53 rd week in the Company’s Fiscal 2013 calendar. Excluding this estimated benefit, the adjusted guidance in the range of $2.38 to $2.41 represents a 20% to 21% increase over the prior year’s adjusted earnings per share.

The Company’s earnings guidance for the fourth quarter and full year Fiscal 2013 assumes that currency exchange rates will remain unchanged from current levels.

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