TJX profit drops on store closing costs
Framingham, Mass. — TJX Cos. reported a 15% drop in fourth-quarter earnings, dragged down by costs to close its A.J. Wright store division. The company also plans to repurchase $1.2 billion of its stock this fiscal year and raise its dividend.
The retailer earned $334.4 million in the three months ended Jan. 29, compared with $394.9 million in the same period last year.
Revenue rose 6.5% to $6.33 billion. Same-store sales were up 2% over the prior year’s strong 12% increase.
In 2011, TJX plans to increase capital spending to the $800 million to $825 million range to support continued growth in its store count, remodels, and investments in its supply chain and infrastructure.
During the fiscal year ended Jan. 29, TJX added 116 stores, net of closings for a total of 923 T.J. Maxx; 830 Marshalls; 336 HomeGoods; and 142 A.J. Wright stores in the United States; 212 Winners; 82 HomeSense and three StyleSense stores in Canada; and 307 T.K. Maxx and 24 HomeSense stores in Europe. As of Feb. 13, all A.J. Wright stores had been closed and 90 are in the process of being converted into other TJX banners.
Lowe’s Q4 net income up 39%
Mooresville, N.C. — Lowe’s reported a 39% increase in fiscal fourth-quarter earnings to $285 million, up from $205 million a year earlier.
Sales grew 3% in the latest quarter to $10.5 billion. Same-store sales rose 1.1%.
For fiscal 2010, net income grew to $2 billion, from $1.8 billion in fiscal 2009. Sales grew to $48.8 billion from $47.2 billion.
The company expects to open 25 to 30 stores in 2011.
“While uncertainty in the market remains, the economic recovery is continuing,” CEO Robert Niblock said. “We are committed to delivering better customer experiences and expect to grow market share in 2011 as we make continued progress on our key initiatives.”
Saks swings to profit in Q4
New York City — Saks returned to profitability in its fiscal fourth quarter as the chain sold more items at full-price and used fewer promotions. The company reported net income of $25 million for the period ended Jan. 29, compared with a loss of $4.6 million a year earlier.
Revenue rose 7% to $866.3 million, topping Wall Street’s estimate of $854.4 million. Same store sales were up 8.4%.