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The TJX Companies Inc. Reports Operating Results (10-Q)

August 24, 2012 | About:

10qk

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The TJX Companies Inc. (TJX) filed Quarterly Report for the period ended 2012-07-28.

The Tjx Companies, Inc. has a market cap of $34.02 billion; its shares were traded at around $45.9 with a P/E ratio of 20.3 and P/S ratio of 1.5. The dividend yield of The Tjx Companies, Inc. stocks is 1%. The Tjx Companies, Inc. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated The Tjx Companies, Inc. the business predictability rank of 4.5-star.

Highlight of Business Operations:

Earnings per share for the second quarter of fiscal 2013 were $0.56 per diluted share, up 24% compared to $0.45 per diluted share in fiscal 2012. Earnings per share for the six-month period ended July 28, 2012 were $1.11 per diluted share, up 41% compared to $0.79 per diluted share in fiscal 2012, or up 32% compared to $0.84 adjusted* diluted earnings per share in the same period last year. Foreign currency exchange rates had an immaterial impact on earnings per share in this years second quarter versus a $0.01 positive impact in last years second quarter. Foreign currency exchange rates had a negative impact of $0.01 on earnings per share in the first six months of both fiscal 2013 and fiscal 2012.

Consolidated net sales for the six months ended July 28, 2012 totaled $11.7 billion, a 10% increase over $10.7 billion in last years comparable period. The increase reflected an 8% increase in same store sales, a 3% increase in new store sales, offset by a 1% decrease from the negative impact of foreign currency exchange rates. This compares to sales growth of 6% in the six month period of fiscal 2012, which reflected a 4% increase from new store sales, a 3% increase in same store sales and a 2% increase from the benefit of foreign currency exchange rates, offset in part by a 3% decrease due to the elimination of sales from stores operating under the A.J. Wright banner.

Net income and net income per share: Net income for the second quarter of fiscal 2013 was $421.1 million, or $0.56 per diluted share, versus $348.3 million, or $0.45 per diluted share, in last years second quarter. Foreign currency translation had an immaterial impact in the second quarter of fiscal 2013 compared to a $0.01 benefit in the same period last year. Net income for the six months ended July 28, 2012 was $840.3 million, or $1.11 per diluted share, compared to $614.3 million, or $0.79 per diluted share in the same period last year. Adjusted diluted earnings per share for the first six months of fiscal 2013 increased 32% over the adjusted $0.84 last year.

Net sales for TJX Europe increased 7% for the second quarter of fiscal 2013 and 11% for the six months ended July 28, 2012 compared to the same periods last year. Currency translation negatively impacted the fiscal 2013 results for both periods, decreasing net sales in the second quarter by $44 million and in the six-month period by $67 million. Same store sales increased 10% in the second quarter of fiscal 2013 compared to being flat a year earlier and increased 11% for the six months ended July 28, 2012, compared to being down 2% in the same period last year. We believe the improvement in fiscal 2013 primarily reflected the results of our improved execution of off-price fundamentals.

Segment profit for the second quarter of fiscal 2013 was $24.7 million compared to $7.3 million last year. The mark-to-market adjustment on inventory-related hedges increased segment profit in the second quarter by $3 million, compared to an increase of $2 million in the same period last year. For the six months ended July 28, 2012, segment profit was $36.5 million, compared to segment loss of $24.0 million in the same period last year. For the six months ended July 28, 2012, the impact of foreign currency translation decreased segment profit by $2 million and the mark-to-market adjustment on inventory-related hedges decreased segment profit by $1 million compared to $1 million increase of segment loss last year. The increases in segment margin for both the second quarter and six months ended July 28, 2012, as compared to last years comparable periods, were driven by strong growth in merchandise margin as well as expense leverage on the strong same store sales growth, primarily occupancy costs. These improvements were partially offset by an increase in the accrual for our incentive compensation plans as a result of our above-plan results and estimates for the full year.

Read the The complete Report

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10qk
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