Store closures impact TJX's profit
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 in 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.