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SECURITY AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(D) of The
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 12, 2003
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THE TJX COMPANIES, INC.
(Exact name of Registrant as specified in charter)
DELAWARE 1-4908 44-2207613
- -------- ------ ----------
(State or other jurisdiction (Common File (I.R.S. employer
of incorporation) Number) identification No.)
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770 Cochituate Road, Framingham, MA 01701
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(Address of Principal Executive Offices) (Zip Code)
(508) 390-1000
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Registrant's Telephone Number (including area code)
N/A
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(Former name or former address,
if changed since last report)
item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
Exhibit Number Title
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99.1 Press Release, dated August 12, 2003 of The TJX Companies, Inc.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The information contained in this report is being furnished and shall not
be deemed to be "filed" for purposes of Section 18 of, or otherwise regarded as
filed under, the Securities Exchange Act of 1934, as amended:
On August 12, 2003, The TJX Companies, Inc. issued a press release which
included financial results for the fiscal quarter ended July 26, 2003. The
release is furnished as Exhibit 99.1 hereto.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
THE TJX COMPANIES, INC.
/s/ Donald G. Campbell
--------------------------------
Donald G. Campbell
Executive Vice President and
Chief Financial Officer
Dated: August 12, 2003
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press Release, dated August 12, 2003 of The TJX Companies, Inc.
The TJX Companies, Inc. Reports Second Quarter Fiscal 2004 Results
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Aug. 12, 2003--The TJX
Companies, Inc. (NYSE: TJX), the leading off-price retailer of apparel
and home fashions in the U.S. and worldwide, today announced sales and
earnings results for the second quarter ended July 26, 2003. Net sales
for the second quarter were $3.0 billion, a 10% increase over last
year, with consolidated comparable store sales increasing 2%. Net
income was $123 million and diluted earnings per share were $.24,
which equalled last year's earnings per share.
For the first half of fiscal 2004, net sales were $5.8 billion, 7%
over last year, and year-to-date consolidated comparable store sales
were flat versus last year's 4% increase. Net income was $237 million
and diluted earnings per share were $.46, versus $.51 per share last
year.
Edmond English, President and Chief Executive Officer of The TJX
Companies, Inc. commented, "We planned our second quarter
conservatively against our very strong second quarter performance last
year, when earnings per share rose 20%. This year's second quarter
earnings per share were within the adjusted range we anticipated as we
entered July and just shy of our original expectations. There were
three major factors that contributed to this year's second quarter
results. First, the unseasonably cool and rainy weather that persisted
throughout May and early June negatively impacted sales and
merchandise margins. Second, we continued to manage our inventories
and open-to-buy positions very aggressively. This allowed us to stay
abreast of current market trends and steadily flow fresh merchandise
assortments to our stores. Third, our younger divisions, T.K. Maxx,
HomeGoods and A.J. Wright, performed extremely well. This is positive
in the short term and very important for the future growth of TJX.
"At The Marmaxx Group, the combination of T.J. Maxx and Marshalls,
second quarter sales increased 4% and comparable store sales were flat
versus last year. Segment profit was $192 million, down from last
year's very strong results, which were driven by exceptionally strong
merchandise margins. This division missed its sales plan because of
the unseasonably cool weather patterns in the first half of the
quarter, which in turn, resulted in greater markdown activity. Despite
this challenge, this major division continued to do an excellent job
of buying the right goods and maintaining inventory liquidity. In
addition, good expense control benefited results at Marmaxx. Our big
opportunities at The Marmaxx Group lie ahead in the second half of the
year and we are confident in our ability to capitalize upon them. We
continue to be pleased with Marmaxx's new stores and now expect to add
77 stores this year."
English continued, "At our Canadian divisions, Winners and
HomeSense, total sales increased 33% in the second quarter. Comparable
store sales increased 16%. In local currency, Winners' comparable
store sales increased 3% over last year's strong performance. Segment
profit increased 11% over last year due to favorable currency exchange
rates. We now expect to net 14 additional Winners stores in 2003. In
addition, we continue to be very pleased with customer response to
HomeSense, our Canadian home fashions concept, and now expect to open
10 new HomeSense stores this year.
"HomeGoods had an excellent quarter, with overall sales coming in
above expectations and increasing 23%, and comparable store sales
growing 4%. HomeGoods' second quarter segment profit doubled its plan
and tripled last year's results. This division's new stores continue
to open very strongly. In addition, the HomeGoods organization is
doing a great job of merchandising and managing inventories. We now
expect to net 39 additional HomeGoods stores this year.
"T.K. Maxx, in the U.K. and Ireland, had a strong second quarter,
increasing total sales by 33% and posting a comparable store sales
increase of 14%. In local currency, T.K. Maxx's comparable store sales
increased 4% over last year. Segment profit exceeded plan and
increased 20% over last year, due to this division's strong execution
of its off-price mission as well as favorable currency exchange rates.
We are pleased with the continued growth of T.K. Maxx in the U.K. and
Ireland and the success of our new stores, and we now expect to open
24 T.K. Maxx stores this year."
English continued, "We are delighted with A.J. Wright's second
quarter results. This young division posted an impressive total sales
increase of 61% and a comparable store sales gain of 11% on top of a
10% increase last year. A.J. Wright's bottom line significantly
outperformed our goals and last year's results. Our new A.J. Wright
stores, as well as those open for more than one year, are doing
extremely well. Further, A.J. Wright is doing an excellent job of
merchandising, resulting in very strong merchandise margins. We now
anticipate netting 24 additional A.J. Wright stores in 2003.
"During the second quarter, we continued with our aggressive share
repurchase program, spending a total of $125 million and retiring 6.8
million shares of TJX stock. Over the last six months, we have spent a
total $265 million to repurchase TJX stock and have retired a total of
15 million shares."
English concluded, "We are enthusiastic about our prospects in the
important second half of this year. The Marmaxx Group has significant
opportunities in year-over-year comparisons. Our younger divisions are
firing on all cylinders, taking an increasingly important role in our
results. Our new stores across the board continue to outperform our
goals and we are on track to grow our store base by 10% this year.
Finally, we are in an excellent inventory position and poised to
capitalize on the tremendous product opportunities in the marketplace
to offer our customers great fashions at great values."
The TJX Companies, Inc. is the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide. The Company
operates 727 T.J. Maxx, 649 Marshalls, 160 HomeGoods and 84 A.J.
Wright stores in the United States. In Canada, the Company operates
154 Winners and 21 HomeSense stores, and in Europe, 132 T.K. Maxx
stores. TJX's press releases and financial information are also
available on the Internet at www.tjx.com.
At 11:00 a.m. EDT today, Edmond English, President and Chief
Executive Officer of The TJX Companies, Inc. will hold a conference
call with stock analysts to discuss the Company's fiscal 2004 second
quarter results, operations and business trends. The call will be
webcast simultaneously at www.tjx.com and will remain available
through Tuesday, August 19, 2003. A replay of the call will also be
available by dialing (800) 841-6832 through Tuesday, August 19, 2003.
Additionally, TJX expects to release its August 2003 sales results on
Thursday, September 4, 2003, at approximately 8:15 a.m. EDT.
Concurrent with the press release, a recorded message with more
detailed information regarding TJX's August sales results, operations
and business trends will be available by calling (703) 736-7248 or via
the Internet at www.tjx.com. That sales recording will remain
available via the phone and Internet through Thursday, September 11,
2003.
SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: Various statements made in this release are
forward-looking and involve a number of risks and uncertainties. All
statements that address activities, events or developments that we
intend, expect or believe may occur in the future are forward-looking
statements. The following are some of the factors that could cause
actual results to differ materially from the forward-looking
statements: general economic conditions including effects of wars,
other military actions and terrorist incidents; consumer confidence,
demand and preferences; weather patterns; competitive factors,
including continuing pressure from pricing and promotional activities
of competitors; the impact of excess retail capacity and the
availability of desirable store and distribution center locations on
suitable terms; recruiting quality sales associates and other
associates; the availability, selection and purchasing of attractive
merchandise on favorable terms and the effective management of
inventory levels; import risks, including potential disruptions in
supply and duties, tariffs and quotas on imported merchandise,
including economic, political or other problems in countries from
which merchandise is imported; currency and exchange rate factors in
our foreign and buying operations; ability to continue successful
expansion of our store base at the rate projected; risks in the
development of new businesses and application of our off-price
strategies in additional foreign countries; factors affecting expenses
including pressure on wages and benefits; our acquisition and
divestment activities; our ultimate liability with respect to leases
relating to discontinued operations including indemnification and
other factors affecting or mitigating our liability; changes in laws
and regulations; and other factors that may be described in our
filings with the Securities and Exchange Commission. We do not
undertake to publicly update or revise our forward-looking statements
even if experience or future changes make it clear that any projected
results expressed or implied therein will not be realized.
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Thirteen Weeks Ended
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July 26, July 27,
2003 2002
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Net sales $3,046,184 $2,765,089
Cost of sales, including buying
and occupancy costs 2,327,058 2,078,736
Selling, general and
administrative expenses 510,818 469,528
Interest expense, net 7,228 5,963
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Income before provision for
income taxes 201,080 210,862
Provision for income taxes 77,818 81,235
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Net income $ 123,262 $ 129,627
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Diluted earnings per share:
Net income $ .24 $ .24
Cash dividends declared per
share $ .035 $ .03
Weighted average shares for
diluted earnings per share
computation 514,340,496 542,224,422
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Twenty-Six Weeks Ended
-----------------------------------
July 26, July 27,
2003 2002
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Net sales $5,834,889 $5,430,776
Cost of sales, including buying
and occupancy costs 4,440,688 4,067,566
Selling, general and
administrative expenses 993,709 902,544
Interest expense, net 14,206 12,157
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Income before provision for
income taxes 386,286 448,509
Provision for income taxes 149,493 171,779
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Net income $ 236,793 $ 276,730
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Diluted earnings per share:
Net income $ .46 $ .51
Cash dividends declared per
share $ .07 $ .06
Weighted average shares for
diluted earnings per share
computation 517,399,853 544,711,559
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)
(In Millions)
July 26, July 27,
2003 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 44.0 $ 292.6
Accounts receivable and
other current assets 241.5 212.1
Current deferred income
taxes, net 11.3 13.4
Merchandise inventories 2,017.9 1,771.4
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Total current assets 2,314.7 2,289.5
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Property and capital leases,
net of depreciation 1,489.7 1,267.2
Other assets 113.6 78.3
Non-current deferred income
taxes, net - 6.5
Goodwill and tradename, net of
amortization 179.3 179.1
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TOTAL ASSETS $ 4,097.3 $ 3,820.6
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LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current installments of
long-term debt $ 15.0 $ -
Accounts payable 1,040.4 962.9
Accrued expenses and other
current liabilities 581.1 509.2
Income taxes payable 85.3 77.9
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Total current liabilities 1,721.8 1,550.0
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Other long-term liabilities 288.8 271.0
Non-current deferred income
taxes, net 68.8 -
Long-term debt 664.9 675.8
Shareholders' equity 1,353.0 1,323.8
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 4,097.3 $ 3,820.6
=========== ===========
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Millions)
Twenty-Six Weeks Ended
---------------------------------
July 26, July 27,
2003 2002
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CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 236.8 $ 276.7
Depreciation and amortization 112.1 101.5
Deferred income tax provision 32.5 19.1
(Increase) in accounts
receivable and other
current assets (61.0) (62.1)
(Increase) in merchandise
inventories (444.3) (302.0)
Increase in accounts payable 217.0 194.8
Increase in income taxes
payable 23.5 36.0
(Decrease) in accrued
expenses and other
liabilities (96.9) (24.8)
Other, net 22.0 8.8
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Net cash provided by operating
activities 41.7 248.0
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CASH FLOWS FROM INVESTING
ACTIVITIES:
Property additions (188.2) (158.9)
Other .3 .3
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Net cash (used in) investing
activities (187.9) (158.6)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Payments for repurchase of
common stock (277.3) (274.5)
Cash dividends paid (33.5) (28.4)
Other 8.8 13.3
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Net cash (used in) financing
activities (302.0) (289.6)
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Effect of exchange rate changes
on cash (.1) -
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Net (decrease) in cash and
cash equivalents (448.3) (200.2)
Cash and cash equivalents at
beginning of year 492.3 492.8
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Cash and cash equivalents at
end of period $ 44.0 $ 292.6
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THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(In Thousands)
Thirteen Weeks Ended
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July 26, July 27,
2003 2002
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Net sales:
Marmaxx $2,301,463 $2,206,050
Winners (a) 245,794 185,000
T.K. Maxx 209,921 157,524
HomeGoods 192,975 156,781
A.J. Wright 96,031 59,734
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$3,046,184 $2,765,089
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Segment profit or (loss):
Marmaxx $ 191,800 $ 211,379
Winners (a) 18,138 16,270
T.K. Maxx 8,184 6,814
HomeGoods 6,114 1,900
A.J. Wright 1,839 (3,066)
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226,075 233,297
General corporate expense 17,767 16,472
Interest expense, net 7,228 5,963
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Income before provision for
income taxes $ 201,080 $ 210,862
========== ==========
(a) Includes the operating
results of HomeSense.
Stores in operation:
T.J. Maxx 727 701
Marshalls 649 600
Winners 154 137
HomeGoods 160 132
T.K. Maxx 132 113
A.J. Wright 84 56
HomeSense 21 11
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Total 1,927 1,750
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THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(In Thousands)
Twenty-Six Weeks Ended
-----------------------------------
July 26, July 27,
2003 2002
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Net sales:
Marmaxx $4,451,549 $4,378,937
Winners (a) 447,577 347,328
T.K. Maxx 387,174 287,283
HomeGoods 370,037 307,615
A.J. Wright 178,552 109,613
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$5,834,889 $5,430,776
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Segment profit or (loss):
Marmaxx $ 385,685 $ 461,483
Winners (a) 29,931 29,336
T.K. Maxx 9,100 3,040
HomeGoods 10,646 5,962
A.J. Wright (506) (6,203)
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434,856 493,618
General corporate expense 34,364 32,952
Interest expense, net 14,206 12,157
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Income before provision for
income taxes $ 386,286 $ 448,509
========== ==========
(a) Includes the operating
results of HomeSense.
Stores in operation:
T.J. Maxx 727 701
Marshalls 649 600
Winners 154 137
HomeGoods 160 132
T.K. Maxx 132 113
A.J. Wright 84 56
HomeSense 21 11
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Total 1,927 1,750
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The TJX Companies, Inc. Notes To Consolidated
and Consolidated Subsidiaries Condensed Financial Statements
1. During the second quarter ended July 26, 2003, TJX repurchased 6.8
million shares of its common stock, at a cost of $125.3 million.
During the six months ended July 26, 2003, TJX repurchased 15.0
million shares for a cost of $264.6 million. Through July 26, 2003,
under its current $1 billion multi-year stock repurchase program, TJX
has repurchased 31.1 million shares at a cost of $567.9 million.
2. Certain amounts in the prior period's financial statements have
been reclassified to be consistent with the current year's
presentation.
CONTACT: The TJX Companies, Inc.
Sherry Lang, Vice President
Investor and Public Relations
(508) 390-2323