NEW YORK — The TJX Cos. reported a 25.9 percent decline in fourth-quarter profit, hurt by big promotions at several of its off-price units and a $19.3 million one-time charge related to a lease accounting change.
In full-year 2004, TJX earned $664.1 million, or $1.30 a share, compared with $658.4 million, or $1.25, in 2003. Sales were $14.91 billion, up 11.9 percent, while consolidated same-store sales increased 5 percent.
Framingham, Mass.-based TJX said during the 13 weeks ending Jan. 29 it earned $176.9 million, or 35 cents a share, versus $238.7 million, or 46 cents, in the comparable quarter last year. Results in the latest quarter included the $19.3 million aftertax charge, equaling 4 cents a share, relating to the timing of rent expense for new stores.
On a pro forma basis, which excludes the one-time charge and a positive impact from the conversion of convertible debt totaling 1 cent, TJX would have earned $196.2 million, or 40 cents, beating Wall Street analysts’ earnings-per-share expectations by a penny.
Revenues in the quarter rose to $4.33 billion, up 5.4 percent, from $4.11 billion a year ago, while consolidated same-store sales gained 4 percent.
By division, sales at the Marmaxx Group, which is made up of T.J. Maxx and Marshalls stores, inched up 0.2 percent to $2.95 billion, and in the U.K. and Ireland, TJX’s T.K. Maxx unit reported sales rose 18.9 percent to $429.9 million.
Edmond English, president and chief executive officer of TJX, said in a statement Wednesday that the strength of the Marmaxx Group — particularly in women’s sportswear, and the successful expansion of jewelry and accessories at T.J. Maxx — led the company’s full-year results. He said the company views the Marmaxx Group as a “key growth vehicle for TJX.”
The company said in a conference call that it expects annual 2005 sales to rise 10 to 11 percent with EPS in the range of $1.49 to $1.57 compared with analysts’ consensus for $1.37. In the first quarter, TJX expects a profit of 32 to 34 cents compared with the consensus of 39 cents.
Issa Rae stopped by WWD's NYC headquarters to talk about season two of "Insecure," which premieres this Sunday on HBO. Click link in bio for all the details. #wwdeye (📷: @jgreenery; Styled by @mayteallende)
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"