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SECURITIES 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 16, 2005
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THE TJX COMPANIES, INC.
(Exact name of Registrant as specified in charter)
DELAWARE 1-4908 44-2207613
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(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)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02. 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 (the
"Exchange Act"), nor shall it be deemed incorporated by reference into any
filing under the Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such filing:
On August 16, 2005, The TJX Companies, Inc. issued a press release
which included financial results for the fiscal quarter ended July 30,
2005. The release is furnished as Exhibit 99.1 hereto.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS
Exhibit
Number Title
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99.1 Press Release, dated August 16, 2005 of The TJX Companies, Inc.
2
SIGNATURES
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/ Jeffrey G. Naylor
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Jeffrey G. Naylor
Senior Executive Vice President and
Chief Financial Officer
Dated: August 16, 2005
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EXHIBIT INDEX
Exhibit
Number Description
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99.1 Press Release, dated August 16, 2005 of The TJX Companies, Inc.
4
Exhibit 99.1
The TJX Companies, Inc. Reports Second Quarter Fiscal 2006 Results
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Aug. 16, 2005--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 30, 2005. Net sales
for the second quarter were $3.6 billion, a 7% increase over last
year, with consolidated comparable store sales increasing 1% over the
prior year. Net income was $123 million and diluted earnings per share
were $.25, a 9% increase over $.23 in the prior year.
For the first half of fiscal 2006, net sales were $7.3 billion, an
8% increase over last year, and year-to-date consolidated comparable
store sales increased 2% over the prior year. Net income was $272
million and diluted earnings per share were $.55, versus $.56 in the
prior year.
Edmond English, President and Chief Executive Officer of The TJX
Companies, Inc., commented, "Second quarter earnings were less than we
had originally planned, primarily due to comparable store sales growth
that did not meet our expectations. That said, merchandise margins
increased significantly over last year across all divisions, the
result of effectively executing our inventory management and
close-to-need buying strategies. Also, expenses were well managed. As
we enter the back half of the year, we are focused on improving
comparable store sales, and believe we have solid opportunities across
our businesses. Our inventory position is very liquid, which allows us
to continue to buy smarter, generate strong merchandise margins, and
offer customers a constant flow of fresh fashions at great values.
"At The Marmaxx Group, the combination of T.J. Maxx and Marshalls,
second quarter sales increased 4% over last year and comparable store
sales increased 2%. Segment profit was up over last year, in line with
plan, and segment profit margin also met our expectations. We are on
track to net a total of 47 new stores for The Marmaxx Group this
year."
English continued, "At our Canadian concepts, Winners and
HomeSense, second quarter sales increased 8% and comparable store
sales decreased 1% in U.S. dollars. In local currency, which we
believe more meaningfully reflects our operating performance,
comparable store sales decreased 9%, versus a very strong 11% increase
last year. Winners' segment profit was essentially flat to last year.
We are on track to net 4 new Winners stores and add 17 HomeSense
stores in 2005.
"At HomeGoods, sales in the second quarter increased 17% and
comparable store sales were flat with last year. Bottom-line results
were below last year. We now expect to net 37 new HomeGoods stores
this year.
"At T.K. Maxx, in the U.K. and Ireland, second quarter sales
increased 19% and comparable store sales increased 1% in U.S. dollars.
In local currency, comparable store sales increased 2% above last
year, with an improving trend as we moved through the quarter. Segment
profit was up 10% over last year. We now expect to net 27 new T.K.
Maxx stores this year."
English continued, "A.J. Wright's second quarter sales increased
25% over last year and comparable store sales increased 1% over the
prior year. Bottom-line results improved over last year, and we now
expect to net 24 new A.J. Wright stores in 2005.
"While Bob's Stores' second quarter results were slightly below
last year, we are seeing strong merchandise margin growth at this
young division. We now expect to end 2005 with a net of 4 new stores
at the Bob's Stores chain."
English concluded, "We continue to generate significant returns on
investment, which gives us the ability to grow our businesses while
simultaneously pursuing our sizable share repurchase program and
maintaining our strong financial position. During the second quarter,
we spent a total of $127 million, retiring 5.5 million shares of TJX
stock. Year-to-date, we have spent a total of $390 million in
repurchases of TJX stock and have retired a total of 16.4 million
shares."
The TJX Companies, Inc. is the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide. The Company
operates 777 T.J. Maxx, 700 Marshalls, 230 HomeGoods, and 143 A.J.
Wright stores, as well as 34 Bob's Stores, in the United States. The
Company also operates two e-commerce sites, www.tjmaxx.com and
www.homegoods.com. In Canada, the Company operates 167 Winners and 47
HomeSense stores, and in Europe, 184 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. ET 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 2006 second
quarter results, operations and business trends. A real-time webcast
of the call will be available at www.tjx.com. A replay of the call
will also be available at www.tjx.com or by dialing 866-430-5848
through Tuesday, August 23, 2005. Additionally, the Company expects to
release its August 2005 sales on Thursday, September 1, 2005, at
approximately 8:15 a.m. ET. Concurrent with that press release, a
recorded message with more detailed information regarding TJX's August
sales results, operations and business trends will be available via
the Internet at www.tjx.com, or by calling (703) 736-7248 through
Thursday, September 8, 2005. Archived versions of the Company's
recorded messages and conference calls are available at www.tjx.com
after they are no longer available by telephone.
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: our ability to continue successful expansion of our store
base; risks of expansion; our ability to successfully implement our
opportunistic inventory strategies and to effectively manage our
inventories; consumer confidence, demand, spending habits and buying
preferences; effects of unseasonable weather; competitive factors;
factors affecting availability of store and distribution center
locations on suitable terms; factors affecting our recruitment and
employment of associates; factors affecting expenses; success of our
acquisition and divestiture activities; our ability to successfully
implement technologies and systems and protect data; our ability to
continue to generate adequate cash flows; general economic conditions;
potential disruptions due to wars, natural disasters and other events
beyond our control; changes in currency and exchange rates; import
risks; adverse outcomes for any significant litigation; changes in
laws and regulations and accounting rules and principles;
effectiveness of internal controls; 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 in such statements 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 30, July 31,
2005 2004
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Net sales $3,647,866 $3,414,287
Cost of sales, including buying and
occupancy costs 2,801,376 2,629,207
Selling, general and administrative expenses 638,082 584,751
Interest expense, net 7,917 6,993
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Income before provision for income taxes 200,491 193,336
Provision for income taxes 77,350 75,094
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Net income $ 123,141 $ 118,242
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Diluted earnings per share:
Net income $ .25 $ .23
Cash dividends declared per share $ .06 $ .045
Weighted average shares for diluted
earnings per share computation (See Note 1) 490,661,817 516,088,733
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Twenty-Six Weeks Ended
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July 30, July 31,
2005 2004
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Net sales $7,299,696 $6,767,024
Cost of sales, including buying and
occupancy costs 5,582,905 5,147,553
Selling, general and administrative expenses 1,259,629 1,138,225
Interest expense, net 13,953 13,576
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Income before provision for income taxes 443,209 467,670
Provision for income taxes 170,724 181,316
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Net income $ 272,485 $ 286,354
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Diluted earnings per share:
Net income $ .55 $ .56
Cash dividends declared per share $ .12 $ .09
Weighted average shares for diluted
earnings per share computation (See Note 1) 495,983,100 518,854,415
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)
(In Millions)
July 30, July 31,
2005 2004
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ASSETS
Current assets:
Cash and cash equivalents $ 181.7 $ 135.6
Accounts receivable and other current assets 384.5 320.5
Current deferred income taxes, net 3.2 6.2
Merchandise inventories (See Note 2) 2,814.7 2,217.0
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Total current assets 3,384.1 2,679.3
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Property and capital leases, net of depreciation 1,900.7 1,644.7
Other assets 124.0 105.8
Goodwill and tradename, net of amortization 183.5 183.6
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TOTAL ASSETS $5,592.3 $4,613.4
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 414.5 $ -
Current installments of long-term debt - 105.0
Accounts payable (See Note 2) 1,519.0 1,142.0
Accrued expenses and other current liabilities 915.1 737.6
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Total current liabilities 2,848.6 1,984.6
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Other long-term liabilities 510.8 373.1
Non-current deferred income taxes, net 150.5 156.1
Long-term debt 575.1 566.8
Shareholders' equity 1,507.3 1,532.8
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,592.3 $4,613.4
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THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Millions)
Twenty-Six Weeks Ended
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July 30, July 31,
2005 2004
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 272.5 $ 286.4
Depreciation and amortization 156.7 135.7
Deferred income tax provision (2.0) 36.5
(Increase) in accounts receivable and other
current assets (133.7) (69.7)
(Increase) in merchandise inventories (See Note 2) (474.7) (276.5)
Increase in accounts payable (See Note 2) 249.6 182.3
Increase in accrued expenses and other liabilities 96.5 31.7
Other, net 20.6 23.9
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Net cash provided by operating activities 185.5 350.3
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CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (219.1) (138.2)
Other .3 .3
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Net cash (used in) investing activities (218.8) (137.9)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings of short-term debt 414.5 -
Principal payments on long-term debt (100.0) -
Payments for repurchase of common stock (383.3) (315.8)
Cash dividends paid (49.9) (39.7)
Other 26.6 34.1
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Net cash (used in) financing activities (92.1) (321.4)
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Effect of exchange rate changes on cash (.1) (1.8)
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Net (decrease) in cash and cash equivalents (125.5) (110.8)
Cash and cash equivalents at beginning of year 307.2 246.4
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Cash and cash equivalents at end of period $ 181.7 $ 135.6
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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 30, July 31,
Net sales: 2005 2004
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Marmaxx $2,537,311 $2,442,162
Winners and HomeSense 316,842 292,566
T.K. Maxx 327,540 275,426
HomeGoods 259,116 222,079
A.J. Wright 147,251 118,262
Bob's Stores 59,806 63,792
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$3,647,866 $3,414,287
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Segment profit or (loss):
Marmaxx $ 211,581 $ 202,582
Winners and HomeSense 20,567 21,101
T.K. Maxx 10,484 9,533
HomeGoods (3,700) (626)
A.J. Wright (1,587) (3,239)
Bob's Stores (8,743) (8,231)
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228,602 221,120
General corporate expense 20,194 20,791
Interest expense, net 7,917 6,993
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Income before provision for income taxes $ 200,491 $ 193,336
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Stores in operation:
T.J. Maxx 777 753
Marshalls 700 684
Winners 167 162
HomeGoods 230 192
T.K. Maxx 184 154
A.J. Wright 143 108
HomeSense 47 32
Bob's Stores 34 31
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Total 2,282 2,116
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THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(In Thousands)
Twenty-Six Weeks Ended
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July 30, July 31,
Net sales: 2005 2004
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Marmaxx $5,100,897 $4,863,386
Winners and HomeSense 629,939 562,191
T.K. Maxx 645,246 538,673
HomeGoods 517,743 448,511
A.J. Wright 286,622 229,108
Bob's Stores 119,249 125,155
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$7,299,696 $6,767,024
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Segment profit or (loss):
Marmaxx $ 479,241 $ 474,496
Winners and HomeSense 32,911 45,494
T.K. Maxx 10,143 11,476
HomeGoods (3,077) 4,535
A.J. Wright (4,547) (6,192)
Bob's Stores (15,266) (6,981)
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499,405 522,828
General corporate expense 42,243 41,582
Interest expense, net 13,953 13,576
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Income before provision for income taxes $ 443,209 $ 467,670
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Stores in operation:
T.J. Maxx 777 753
Marshalls 700 684
Winners 167 162
HomeGoods 230 192
T.K. Maxx 184 154
A.J. Wright 143 108
HomeSense 47 32
Bob's Stores 34 31
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Total 2,282 2,116
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The TJX Companies, Inc. Notes To Consolidated
and Consolidated Subsidiaries Condensed Financial Statements
1. In our fourth quarter reporting period ended January 29, 2005, we
began to calculate diluted earnings per share in accordance with
EITF Issue No. 04-08, "The Effect of Contingently Convertible Debt
on Diluted Earnings per Share." This accounting pronouncement
impacts the company's treatment for earnings per share purposes,
of its $517.5 million zero coupon convertible subordinated notes
issued in February 2001. These notes are convertible into 16.9
million shares of common stock of TJX if the sale price of our
stock reaches certain levels or other contingencies are met. EITF
Issue No. 04-08 requires that shares associated with contingently
convertible debt be included in diluted earnings per share
computations regardless of whether contingent conversion
conditions have been met. EITF Issue No. 04-08 also requires that
diluted earnings per share for all prior periods be restated to
reflect this change. As a result, diluted earnings per share
reflect the assumed conversion of our convertible subordinated
notes. This change reduces diluted earnings per share by $.01 per
share for the second quarters ended July 30, 2005 and July 31,
2004 and by $.02 and $.01 for the six months ended July 30, 2005
and July 31, 2004, respectively.
2. Effective with the third quarter ended October 30, 2004, we began
to accrue for inventory purchase obligations at the time the
inventory is shipped rather than when received and accepted by
TJX. As a result, as of July 30, 2005 we have recorded a $326
million increase to merchandise inventory on our balance sheet, to
reflect this in-transit inventory, as well as an equal increase to
accounts payable at that date. Prior years have not been adjusted
for this change. This accrual for inventory in transit affects
only the reported levels of inventory and accounts payable on the
balance sheet, and has no impact on our operating results, cash
flows, liquidity or shareholders' equity.
3. During the six months ended July 30, 2005, TJX repurchased 16.4
million shares of its common stock at a cost of $389.7 million.
During the second quarter ended July 30, 2005, TJX repurchased 5.5
million shares of its common stock, at a cost of $126.9 million.
Through July 30, 2005, under its current $1 billion multi-year
stock repurchase program, TJX has repurchased 34.1 million shares
at a cost of $796.3 million.
CONTACT: The TJX Companies, Inc.
Sherry Lang, Vice President
Investor and Public Relations
(508) 390-2323