Treasure hunt still luring shoppers to TJX
TJX's treasure hunt assortment is resonating with shoppers looking for consumables and other items at a bargain.
As the company's fourth quarter results show, the retailer has found a way to lure shoppers away from their phones and tablets by enticing them with an assortment of brand name beauty products and other consumables priced at a discount.
For the fourth quarter ended Feb. 3, the company that operates TJ Maxx, HomeGoods and other off-price banners reported a Q4 net sales increase of 16% to $11 billion. Same store sales increased 4% over last year’s 3% increase.
“We are very pleased with our strong finish to 2017," said Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc. "Once again, customer traffic was up overall and the primary driver of our comp sales increases at each of our four major divisions, as customers responded to our great brands and compelling, eclectic mix of merchandise at excellent values. We are also pleased with our full-year performance as we surpassed $35 billion in annual sales, an important milestone for our company! Consolidated comp store sales were up 2% as we marked the 22nd consecutive year of comp sales growth for TJX. For the full year, adjusted earnings per share were also above our plan.”
Net income for the quarter totaled $877.3 million, or $1.37 per share, up from $677.9 million, or $1.03, for the same period last year. Revenue for the quarter was $10.96 billion, up from $9.47 billion last year.
TJX also raised its quarterly dividend by 25 percent to 39 cents per share and said it would repurchase about $2.5 billion to $3 billion worth of shares this fiscal year.
The company plans to pay a one-time bonus to employees as a result of the 2017 Tax Act.
Adjusted EPS for the quarter was $1.19, which excludes a 17-cent benefit from the tax overhaul.
"TJX continues to benefit from a healthy consumer that is focused on value and convenience," said Moody's Vice President & Senior Analyst Christina Boni.
For the first quarter, TJX forecast adjusted earnings of 85 cents to 87 cents per share
During the fiscal year ended Feb. 3, the company increased its store count by 258 stores. The company now operates a total of 4,070 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and three e-commerce sites. These include 1,223 TJ Maxx, 1,062 Marshalls, 667 HomeGoods, 27 Sierra Trading Post, and 4 Homesense stores, as well as tjmaxx.com and sierratradingpost.com in the United States; 264 Winners, 117 HomeSense, and 73 Marshalls stores in Canada; 540 TK Maxx and 55 Homesense stores, as well as tkmaxx.com, in Europe; and 38 TK Maxx stores in Australia.