Off-price apparel retailer TJX raises Q4 & full year outlook
The TJX Companies Inc reported January 2009 sales results. Sales for the four-week period ended January 31, 2009, were $1.0 billion, a 6% decrease from the $1.1 billion achieved during the four-week period ended February 2, 2008. For the 52 weeks ended January 31, 2009, sales reached $18.7 billion, up 2% from the $18.4 billion achieved during the 52 weeks ended February 2, 2008.
Sales for both the month and year-to-date periods include the negative impact of foreign currency translation (see below). Consolidated comparable store sales for the four-week period ended January 31, 2009, on a constant currency basis were down 4% compared to a 1% increase last year on the same basis.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “Consolidated comparable store sales for January were within our anticipated range. While January is typically a clearance month, I am pleased that we are entering February with inventories that are in excellent shape, clearance levels that were well below last year and extremely fresh assortments for the spring season.
With merchandise margins stronger than anticipated, we now expect adjusted earnings per share to be near the high end of our previously anticipated range. We continue to believe that we are well positioned to combat the difficult consumer environment by offering great brands at excellent values.”
Impact of Foreign Currency Exchange Rates:
For the four-week period ended January 31, 2009, foreign currency exchange rates had a five percentage-point negative impact on consolidated comparable store sales, as the Company expected.
Including this negative impact, consolidated comparable store sales in U.S. dollars were down 9% for the period versus a 3% increase last year, which included an approximately one-and-a-half percentage-point positive impact from foreign exchange. As previously announced, beginning in Fiscal Year 2010, the Company will report comparable store sales results on a constant currency basis only, which it believes more closely reflects its operating performance and is consistent with the reporting practices of other multi-national retailers.
Updated Guidance for Fourth Quarter and Full Year Fiscal 2009:
The Company now expects fourth quarter reported diluted earnings per share from continuing operations to be in the range of $.53 to $.54. This anticipated range now reflects an anticipated $.03 per share benefit due to a reduction in the reserve related to the previously announced computer intrusion(s), reflecting insurance recoveries as well as other adjustments.
Excluding this benefit, the Company now expects adjusted diluted earnings per share from continuing operations for the fourth quarter to be in the range of $.50 to $.51, near the high end of the Company's previous guidance, primarily due to stronger-than-expected merchandise margins. This range also includes an expected $.09 per share benefit from the 53rd week in the Company's Fiscal 2009 calendar and a net $.11 per share negative impact from foreign currency exchange rates.