TJX Net Falls 15 Percent in Fourth Quarter
FRAMINGHAM, Mass.-Rising expenses hurt the bottom line of The TJX Cos. in the fourth quarter, to the tune of a 15 percent decrease in net income to $334.4 million.
The off-price retail company saw its selling, general and administrative expenses jump 20 percent in dollars and 192 basis points as a percentage of sales, to 17.7 percent. In addition, an increase in cost of goods sold resulted in a 34-basis point slimming down in gross margin, which was 26.3 percent. Net sales for the quarter, which ended on Jan. 29, rose 6.6 percent to $6.3 billion, which included an increase of 2 percent in same-store sales.
In spite of the decline in fourth-quarter profit, net income for the full fiscal year gained 11 percent to $1.3 billion, on an 8.2 percent pickup in net sales to $21.9 billion. Carol Meyrowitz, TJX's chief executive officer, said the results for the year stemmed from "the extraordinary flexibility of our off-price business model and our ability to successfully utilize that flexibility to our advantage."