10-KPeriod: FY2014

TJX COMPANIES INC /DE/ Annual Report, Year Ended Feb 1, 2014

Filed April 1, 2014For Securities:TJX

Summary

TJX Companies Inc. reported a solid performance for the fiscal year ended February 1, 2014, with net sales increasing by 6% to $27.4 billion and diluted earnings per share rising 15% to $2.94. This growth was driven by a 3% increase in same-store sales, reflecting both higher average transaction values and a slight uptick in customer traffic, despite challenges from unfavorable weather. The company continued its strategic expansion, adding new stores and reinvesting in its infrastructure while also returning value to shareholders through share repurchases and dividends. The off-price retailer's flexible business model and opportunistic buying strategy continue to be key differentiators, allowing TJX to offer compelling value across its diverse portfolio of brands, including T.J. Maxx, Marshalls, HomeGoods, and international banners. The company's focus on expense management and efficient inventory turnover contributed to an improved pre-tax margin. The successful launch of tjmaxx.com and the integration of Sierra Trading Post further strengthened its market position and omnichannel capabilities.

Financial Highlights

50 data points
Beta

Revenue

$27.42B

Net Income

$2.14B

7.8% Net Margin

EPS (Diluted)

$1.47

Total Assets

$10.10B

Cash & Equivalents

$2.15B

Free Cash Flow

$1.65B

Financial Statements
Beta
Revenue$27.42B
SG&A Expenses$4.47B
Operating Income$3.68B
Interest Expense$57.08M
Net Income$2.14B
EPS (Basic)$1.50
EPS (Diluted)$1.47
Shares Outstanding (Basic)1.43B
Shares Outstanding (Diluted)1.45B

Key Highlights

  • 1Net sales increased by 6% to $27.4 billion in fiscal 2014.
  • 2Diluted earnings per share grew by 15% to $2.94.
  • 3Same-store sales increased by 3% on a 52-week basis, driven by higher average ticket prices and increased traffic.
  • 4The company expanded its store base, with a 6% increase in stores and a 5% increase in selling square footage.
  • 5TJX successfully launched its e-commerce website, tjmaxx.com.
  • 6Shareholder returns were prioritized through $1.5 billion in share repurchases and an increased quarterly dividend.
  • 7The acquisition of Sierra Trading Post was successfully integrated, contributing to overall growth.

Frequently Asked Questions

TJX's core strategy is to operate as a leading off-price retailer of apparel and home fashions. They differentiate themselves by offering a rapidly changing assortment of quality, brand-name, and designer merchandise at prices 20% to 60% below traditional department and specialty store prices. This is achieved through an opportunistic buying strategy, flexible business model, and a focus on creating a 'treasure hunt' shopping experience for customers.

In fiscal year 2014, TJX reported a 6% increase in net sales, reaching $27.4 billion. Diluted earnings per share saw a significant 15% increase, rising to $2.94. This performance was supported by a 3% increase in same-store sales, indicating healthy consumer demand for their value proposition.

TJX operates through four primary business segments: Marmaxx (T.J. Maxx and Marshalls in the U.S.), HomeGoods (in the U.S.), TJX Canada (Winners, HomeSense, and Marshalls in Canada), and TJX Europe (T.K. Maxx and HomeSense in Europe). They also acquired Sierra Trading Post, an off-price Internet retailer, which is reported within the Marmaxx segment.

TJX employs an 'opportunistic buying' strategy, acquiring merchandise from a variety of sources such as order cancellations, manufacturer overruns, and closeouts. They aim to maintain lean inventory levels and frequent inventory turns. Their buying organization operates globally, allowing them to source merchandise that meets their criteria for brand, fashion, quality, and price, often closer to the selling season.