10-QPeriod: Q3 FY2001

TJX COMPANIES INC /DE/ Quarterly Report for Q3 Ended Oct 28, 2000

Filed December 12, 2000For Securities:TJX

Summary

TJX Companies reported solid growth for the nine months ended October 28, 2000, with net sales increasing by 9% to $6.83 billion and diluted earnings per share (EPS) rising to $1.38, up from $1.20 in the prior year. This growth was driven by a combination of increased same-store sales across most banners and the opening of new stores. The company also highlighted a 10% increase in its total store count, reaching 1,466 locations, indicating continued expansion. Financially, TJX demonstrated strong operating cash flow generation. The company continued its aggressive share repurchase program, buying back significant amounts of stock. Management also secured additional revolving credit facilities to support its operations and share repurchases, providing financial flexibility. While facing increased freight and distribution costs, the company managed to maintain or slightly improve its cost of sales as a percentage of net sales, largely due to strong merchandise margins and expense control, particularly at its Marmaxx division.

Key Highlights

  • 1Net sales for the nine months ended October 28, 2000, grew 9% to $6.83 billion from $6.27 billion in the prior year.
  • 2Diluted earnings per share (EPS) for the nine-month period increased to $1.38 from $1.20 in the prior year, reflecting improved profitability.
  • 3Consolidated same-store sales increased by 2% for the nine-month period, with notable strength in Marmaxx (2%), Winners (10%), and T.K. Maxx (9%).
  • 4The company expanded its store base by 10% year-over-year, reaching a total of 1,466 stores as of October 28, 2000.
  • 5TJX continued its substantial share repurchase program, buying back 20.7 million shares for $396.1 million during the first nine months of fiscal 2000.
  • 6The company secured an additional $250 million revolving credit facility, bringing its total available credit to $750 million, to support general corporate purposes and stock repurchases.

Frequently Asked Questions

For the thirteen weeks ended October 28, 2000, net sales increased by 10% to $2.46 billion, compared to $2.24 billion in the prior year. For the thirty-nine weeks ended October 28, 2000, net sales rose by 9% to $6.83 billion, up from $6.27 billion in the comparable period of 1999.

Net income for the thirteen weeks ended October 28, 2000, was $158.3 million ($0.56 per diluted share), an increase from $151.7 million ($0.48 per diluted share) in the prior year. For the thirty-nine weeks, income before the cumulative effect of accounting change was $402.9 million ($1.38 per diluted share), compared to $389.9 million ($1.22 per diluted share) in the prior year. The diluted EPS for net income for the nine-month period was $1.38 in 2000 versus $1.20 in 1999.

Inventory levels increased, partly due to earlier merchandise receipt to support holiday initiatives and normal seasonal requirements. The company continued its expansion, with a 10% year-over-year increase in total stores to 1,466. Same-store sales showed positive growth across most divisions, with notable strength in Marmaxx, Winners, and T.K. Maxx.

TJX is actively engaged in returning capital to shareholders through its share repurchase program, having repurchased 20.7 million shares for $396.1 million in the first nine months of fiscal 2000 and announcing an additional $1 billion repurchase program. The company also bolstered its financial flexibility by securing a new $250 million revolving credit facility, in addition to its existing $500 million facility.