The TJX Cos. Inc. board on Monday approved a new stock buyback program for as much as $1 billion of its common shares.
This story first appeared in the September 22, 2009 issue of WWD. Subscribe Today.
The amount represents about 6.2 percent of the off-price retailer’s outstanding common stock at current prices, the company said.
TJX, which is based in Framingham, Mass., said it expects to buy back $625 million of stock in fiscal 2010.
“This new authorization reflects our confidence in continuing to deliver significant growth in sales, earnings and cash flow, even in this difficult economic environment,” president and chief executive officer Carol Meyrowitz said, adding the $1 billion program is in addition to TJX’s existing $1 billion stock repurchase program, in which $367 million of authorization remains.
The latest repurchase is the company’s 10th since 1997.
TJX also said it registered a quarterly dividend of 12 cents a share payable Dec. 3 to shareholders of record on Nov. 12.
In the second quarter ended Aug. 1, TJX’s profit jumped 30.7 percent to $261.6 million, or 61 cents a diluted share, from $200.2 million, or 45 cents, last year.
Quarterly revenue rose 4.4 percent to $4.75 billion from $4.55 billion, with the Marmaxx unit, consisting of TJ Maxx and Marshalls, up 6.4 percent to $3.15 billion.