FINANCE

TJX profit surges in Q4; full-year forecast below expectations

BY Katherine Boccaccio

Framingham, Mass. — The TJX Cos. reported Wednesday a profit of $604.8 million for the quarter ended Feb. 2, compared with $475.3 million in the year-ago period. Despite the strong showing, TJX forecast a slowed growth pace for the new fiscal year and issued a profit forecast below analysts’ expectations. And joining many other retailers, the company announced that beginning with the fiscal 2014 second quarter, it will no longer report monthly sales.

For the 14-week fourth quarter ended February 2, 2013, TJX reported net sales of $7.7 billion, a 15% increase over the prior year. Consolidated same-store sales for the quarter increased 4% over the prior year’s 7% increase.

“As large as we are, we have enormous store growth potential and are excited about the opportunity to leverage the success of our brick-and-mortar business with e-commerce over time,” said Carol Meyrowitz, CEO, TJX Companies. “Our management team is focused on our four powerful divisions, and I am as confident as ever in our ability to continue driving profitable sales growth for many years to come. We are well on the road to being a $40 billion-plus company!”

Looking ahead, TJX predicts same-store sales will rise a slight 1% to 2% this year after a 7% bump for the year ended Feb. 2.

Net sales for the 53-week fiscal year were $25.9 billion, a 12% increase over last year. Consolidated same-store sales for the year increased 7% over the prior year’s 4% increase. Net income for the year was $1.9 billion, compared to $1.93 last year.

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E.Ka says:
Mar-19-2013 07:54 pm

We should really expect what
We should really expect what is in reality, what we can only achieve to avoid disappointments. We should not be too ambitious for it will destroy the company. - Rich Von Alvensleben

E.Ka says:
Mar-19-2013 07:54 pm

We should really expect what is in reality, what we can only achieve to avoid disappointments. We should not be too ambitious for it will destroy the company. - Rich Von Alvensleben

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REAL ESTATE

7-Eleven targets 50,000 stores by end of Q1

BY Staff Writer

Dallas — 7-Eleven announced Tuesday that the company achieved record store growth in 2012 and expects the number of 7-Eleven stores worldwide to pass the 50,000-store mark by the end of the first quarter.

The c-store chain added nearly 5,000 stores globally in 2012; 1,000 were in the U.S. and Canada. At year’s end, 7-Eleven operated 49,500 stores in 16 countries.

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FINANCE

Starboard urges Office Depot to sell off interest in Mexican unit

BY Katherine Boccaccio

Boca Raton, Fla. — Office Depot largest shareholder Starboard Value said Wednesday it sent a letter to the office supply retailer’s board, urging it to sell its 50% joint-venture interest in the Office Depot de Mexico business as soon as possible.

Starboard, which owns a 14.8% stake in Office Depot, said it believes the value of the JV interest is not fully reflected in the retailer’s stock price.

JV partner Mexican retailer Grupo Gigante has offered $687.34 million for Office Depot’s half. That offer expires on Thursday, and an answer will require consent from OfficeMax under the terms of the office supply pair’s recently announced merger deal.

"If OfficeMax does not consent to Office Depot’s negotiations with Gigante or any other potential buyer regarding the sale of the JV Interest, Starboard would view this as both unreasonable and potentially anti-competitive," the shareholder said in the letter.

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