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TJX Companies, Inc plans new US home chain

HomeGoods store 725 x 500

The TJX Companies, Inc, the US parent of UK retailers TK Maxx and HomeSense, has reported on fourth quarter trading for the year ended January 28, 2017.

In the US, the Group operates under the trading fascias TJ Maxx, Marshalls, HomeGoods and Sierra Trading Post.

During the conference call discussing the Group's performance, CEO Ernie Herrman also told analysts and journalists that the company plans to launch a new home concept this year.  He confirmed that four branches of the new store are planned, but did not elaborate beyond advising that the new business will be differentiated from TJX's existing US home brand, HomeGoods, 'to encourage customers to shop both stores'.

Net sales for the fourth quarter of Fiscal 2017 increased 6% to $9.5 billion, over an 8% increase last year. Consolidated comparable store sales for the fourth quarter increased 3%, over last year’s 6% increase. Net income for the fourth quarter was $678 million and diluted earnings per share were $1.03, a 4% increase over the prior year’s $.99.

For the 52-week fiscal year ended January 28, 2017, net sales were $33.2 billion, a 7% increase over last year’s 6% increase. Consolidated comparable store sales increased a strong 5%, over last year’s 5% increase. Net income for the fiscal year was $2.3 billion and diluted earnings per share were $3.46, a 4% increase over last year’s $3.33. 

Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “The year 2016 was another terrific year for TJX on top of many great years! We were proud to mark our 40-year milestone as a company and surpass $33 billion in sales! Our consolidated comp sales increased a strong 5%, above our plan and over 5% growth last year, and earnings per share growth exceeded our expectations. We also delivered a 7% increase in net sales, over a 6% increase last year. We were particularly pleased that customer traffic was the primary driver of our comp increases at every major division, which tells us that our eclectic merchandise mix and amazing values continue to resonate with consumers across our geographies. It was also great to see a strong increase in our merchandise margin, over a very solid increase last year. The year 2016 also marked our 21st consecutive year of comp sales increases! We were also very pleased to end the year with above-plan fourth quarter results. Our 3% consolidated comp store sales increase and earnings per share of $1.03 both exceeded our expectations. Once again, comp sales were driven by customer traffic and our merchandise margin was up. Our fourth quarter and full year results give us great confidence that we are growing our customer base around the world and gaining market share across all our divisions!”

Herrman continued, “Looking ahead, we see many opportunities to continue our successful growth and are pursuing many initiatives to keep driving shoppers to our stores. We are making strategic investments in our infrastructure, stores, and new seeds to strengthen our leadership positions and allow us to capture additional market share in the U.S. and internationally. Our management team is laser focused on achieving our 2017 plans and, as always, passionate about surpassing them. We have a clear, long-term vision for growth and are confident that we have the right strategy, culture and people in place as we continue to grow TJX as the only major international off-price retailer in the world!”

Source : Insight DIY

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24 February 2017

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