TJX INCOME UP $33.5M IN 4TH QUARTER
NEW YORK — Boosted by last fall’s acquisition of Marshalls, The TJX Cos. reported that income from continuing operations jumped to $33.5 million, or 40 cents per share, in the fourth quarter, from $12.7 million, or 15 cents, a year ago.
After easily beating Wall Street’s 36-cent estimate, the off-price chain’s stock rose 1/4 Wednesday to close at 25 1/2 on the New York Stock Exchange.
Sales from continuing operations grew to $1.76 billion from $1.03 billion, reflecting the acquisition of Marshalls in mid-November.
Bernard Cammarata, president and chief executive officer, noted that same-store sales at T.J. Maxx stores were lower than anticipated due to the difficult retail environment. However, he added that the company was able to manage inventories conservatively and ended the year “well positioned for improved performance in 1996.” Cammarata said nonapparel categories sold better than apparel.
TJX is the nation’s largest off-price apparel retailer, with 587 T.J. Maxx stores, 496 Marshalls stores and 52 Winner’s Apparel units in Canada.
After a $35 million charge for closing certain T.J. Maxx stores and a $3.3 million charge for early retirement of debt, net income in the fourth quarter totaled $9.2 million, or 7 cents a share, against $11.7 million, or 14 cents, after a $1 million charge from discontinued operations in the year-ago period.
Chadwick’s of Boston, an off-price mail-order division, achieved record operating profits that were well ahead of expectations.
In the year ended Jan. 27, income from continuing operations before the $35 million charge totaled $84.6 million, or $1.03 a share, compared with $86.6 million, or $1.08.
Net income came to $26.3 million, or 23 cents, against $82.6 million, or $1.03, a year ago. Sales from continuing operations rose 27 percent to $4.45 billion from $3.49 billion.
— Fairchild News Service