TJX Bottom Line Jumps for Q4, Fiscal Year; HomeGoods Comes on Strong
FRAMINGHAM, Mass.-The TJX Cos. ended what its CEO, Carol Meyrowitz, called "another great year" with close to 30 percent growth in net income for both its fourth quarter and fiscal year.
Net income in the quarter, which ended on Feb. 2, rose 27.3 percent to $604.8 million, and for the year increased 27.4 percent to $1.9 billion. The top line contributed significantly to the bottom line for both periods. In the quarter, net sales jumped 15.1 percent to $7.7 billion, while for the year net sales totaled $25.9 billion, up 11.6 percent.
Although each of TJX's divisions contributed to its success, HomeGoods made a notable contribution for both the quarter and the year. In the quarter, HomeGoods' sales rose 22.6 percent with a same-store sales gain of 5 percent. For the year, HomeGoods registered an 18.4 percent total sales increase and a pickup of 7 percent in same-store sales.
"HomeGoods has taken hold as a shopping destination for exciting, quality product from around the world," Meyrowitz said.
Improved merchandise margins across all of TJX's divisions bolstered gross margin by 140 basis points to 28.6 percent. Selling, general and administrative expenses rose 17.2 percent in dollars and 29 basis points as a percentage of sales, to 16.1 percent.
"As large as we are," Meyrowitz said in looking ahead, "we have enormous store-growth potential and are excited about the opportunity to leverage the success of our brick-and-mortar business with e-commerce over time." She added that TJX is now on its way to being a $40 billion-plus company.