10-QPeriod: Q1 FY2014

TJX COMPANIES INC /DE/ Quarterly Report for Q1 Ended May 4, 2013

Filed May 31, 2013For Securities:TJX

Summary

The TJX Companies, Inc. reported solid financial results for the first quarter ended May 4, 2013, demonstrating resilience amidst challenging weather conditions. Net sales increased by 7% to $6.2 billion, driven by a 2% increase in same-store sales and growth from new store openings. Diluted earnings per share (EPS) saw a healthy 13% increase to $0.62, up from $0.55 in the prior year period, reflecting effective cost management and a favorable tax rate. The company continued its commitment to shareholder returns through a robust stock repurchase program, buying back $300 million in the quarter, contributing to the EPS growth. Despite unfavorable weather impacting some regions, TJX's diversified business model and strong merchandise margins, particularly in its HomeGoods segment and less weather-sensitive categories, contributed to the positive results. The company maintains a strong liquidity position, with ample cash and available credit facilities to support ongoing operations and capital investments.

Financial Highlights

45 data points
Beta

Revenue

$6.19B

28.4% Gross Margin

Net Income

$452.89M

7.3% Net Margin

EPS (Diluted)

$0.31

Total Assets

$9.84B

Cash & Equivalents

$1.99B

Free Cash Flow

$42.23M

Financial Statements
Beta
Revenue$6.19B
Gross Profit$1.76B
SG&A Expenses$1.02B
Net Income$452.89M
EPS (Basic)$0.32
EPS (Diluted)$0.31
Shares Outstanding (Basic)1.44B
Shares Outstanding (Diluted)1.47B

Key Highlights

  • 1Net sales increased 7% year-over-year to $6.2 billion for the first quarter.
  • 2Diluted earnings per share (EPS) grew 13% to $0.62, up from $0.55 in the prior year.
  • 3Same-store sales increased by 2% year-over-year, driven by higher average transaction values and slight customer traffic growth.
  • 4The company repurchased $300 million of its common stock during the quarter, contributing to EPS growth.
  • 5The HomeGoods segment showed strong performance with a 16% increase in net sales and a 7% rise in same-store sales.
  • 6Cost of sales as a percentage of net sales improved slightly to 71.6%, primarily due to increased merchandise margins.
  • 7TJX announced the issuance of $500 million in new 2.50% ten-year notes, intended for general corporate purposes and working capital.

Frequently Asked Questions

TJX reported strong financial performance in the first quarter of fiscal 2014. Net sales increased by 7% to $6.2 billion, and diluted earnings per share (EPS) rose by 13% to $0.62. This growth was achieved despite unfavorable weather conditions in several regions, highlighting the company's ability to manage costs and maintain merchandise margins.

Consolidated same-store sales increased by 2% for the first quarter. This growth was attributed to an increase in the average transaction value and a slight increase in customer traffic. Certain regions like Florida and the West Coast in the U.S., as well as the home fashions category, performed particularly well.

TJX continued its commitment to shareholder returns by repurchasing $300 million of its common stock during the first quarter. This buyback activity helps to increase earnings per share. Additionally, the company paid cash dividends, with declared dividends per share of $0.145 for the quarter.

The company's segments showed varied but generally positive performance. Marmaxx (T.J. Maxx and Marshalls) saw a 6% increase in net sales, though same-store sales grew only 1% on top of a strong prior year. HomeGoods was a standout performer, with a 16% increase in net sales and a 7% rise in same-store sales. TJX Canada experienced a 1% sales increase with a 1% decrease in same-store sales, impacted by weather, while TJX Europe reported a 7% sales increase and a 4% rise in same-store sales.