NEW YORK — Ted English, president and chief executive officer of The TJX Cos., the nation's largest off-price retailer, has resigned amid concerns over the performances of some of its smaller divisions.
English, who ran the retailer for the past five and a half years, will be temporarily succeeded by Bernard Cammarata, who continues in his role as chairman and has become acting president and ceo. Cammarata was the former ceo of TJX, and is widely credited with catapulting the company into a powerhouse off-pricer. He has been with TJX and its predecessor businesses since 1976.
The company said a search for a new ceo has begun and it will examine internal and external candidates. English will serve as an adviser to Cammarata.
Cammarata complimented English on his performance, saying that during his tenure at the helm, "sales and profit increased significantly, as we opened over 900 stores and created more than 50,000 jobs. Today, TJX remains a financially strong and highly profitable company, with a strong competitive position and a deep management bench."
English said he was proud of his accomplishments, but added, "While sales and segment profit at Marmaxx, our largest business, have experienced strong growth, our other businesses have not met expectations over the past year, despite actions taken to improve their performance. After much reflection, I have come to the conclusion that these businesses would benefit from a fresh perspective at the top. I believe that Ben Cammarata's vision, experience and leadership skills will serve TJX well in the interim period."
TJX operates 780 T.J. Maxx, 703 Marshalls, 230 HomeGoods and 146 A.J. Wright stores, as well as 35 Bob's Stores, in the U.S. In Canada, the company operates 168 Winners and 48 HomeSense stores; in Europe, 185 T.K. Maxx stores.
For the second quarter ended July 30, the company fell short of profit plans, which English attributed to weak comparable-store sales, at just 1 percent up. Net sales were $3.6 billion, a 7 percent increase. Net income was $123 million and diluted earnings per share were 25 cents, a 9 percent increase over 23 cents in the prior year, but good inventory management kept margins up and expenses were well managed. The Canadian business had a 9 percent drop in comps. Last year, the company performed well, bolstered by the core Marmaxx Group, which posted strong comps, while results at TJX's other divisions were below expectations.
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