TJX Companies reports 6 percent rise in FY14 net sales

The TJX Companies, for the fourth quarter ended January 31, 2015, reported net sales of 8.3 billion dollars, a 6 percent increase over last year. Consolidated comparable store sales increased 4 percent over last year’s 3 percent increase. Net income was 648 million dollars and diluted earnings per share were 0.93 dollars, a 15 percent increase over last year’s 0.81 dollars per share.

For the 52-week fiscal year, net sales were 29.1 billion dollars, a 6 percent increase over last year. Consolidated comparable store sales increased 2 percent over last year’s 3 percent increase. Net income for the fiscal year was 2.2 billion dollars, and diluted earnings per share were 3.15 dollars. Excluding a second quarter debt extinguishment charge of 0.01 dollars per share, adjusted diluted earnings per share were 3.16 dollars, a 12 percent increase over last year’s adjusted 2.83 dollars.

Commenting on the results, Carol Meyrowitz, Chief Executive Officer of The TJX Companies, stated, “Our EPS growth of 15 percent and comp increase of 4 percent significantly exceeded our expectations. Merchandise margins were also very strong. Our adjusted earnings per share growth of 12 percent over last year’s 15 percent increase marks our sixth consecutive year of double-digit EPS increases.”

The company intends to increase the regular quarterly dividend on its common stock to be declared in March 2015 and payable in June 2015 to 0.21 dollars per share, subject to the approval of the Board of Directors. This increase would represent a 20 percent increase in the current per share dividend and mark the 19th consecutive year that the company has raised the dividend. The company also announced an initiative on wages for its US store associates, including its T.J. Maxx, Marshalls, HomeGoods and Sierra Trading Post Associates. This initiative will benefit current and future associates, as the company’s full- and part-time hourly US store associates will earn at least 9 dollars per hour beginning in June. Sometime during 2016, all hourly US store associates who have been employed for six months or more will earn at least 10 dollars per hour.

For the fiscal year ending January 30, 2016, the company expects diluted earnings per share to be in the range of 3.17 dollars to 3.25 dollars versus 3.15 dollars in fiscal 2015. This guidance reflects an assumption that currency could have a 5 percent negative impact on EPS growth, including 3 percent due to the impact of the dramatic change in foreign currency exchange rates on translation and mark-to-market adjustments and 2 percent from the effect of currency on merchandise margins at the company’s international divisions. The EPS outlook is based upon estimated consolidated comparable store sales growth of 1percent to 2 percent, consistent with the company’s plans in prior years. Again, the company is reiterating its 10 percent to 13 percent long-term annual EPS growth model.

For the first quarter of fiscal 2016, the company expects diluted earnings per share to be in the range of 0.64 dollars to 0.66 dollars, which would represent a 0 percent to 3 percent increase over last year’s 0.64 dollars per share. This guidance reflects an assumption that currency could have a 4 percent negative impact on EPS growth, including 3 percent due to the impact of the change in foreign currency exchange rates on translation and mark-to-market adjustments and 1 percent from the effect of currency on merchandise margins at the company’s international divisions.

During the fiscal year ended January 31, 2015, the company increased its net store count by 176 stores to end the year with 3,395 stores.