The TJX Companies, Inc. September 2005 sales were $1.5 billion, up 6% over $1.4 billion achieved during the five-week period ended October 2, 2004. For the 35 weeks ended October 1, 2005, sales reached $10.0 billion, a 7% increase over last year's $9.3 billion. Consolidated comparable store sales for the five-week period ended October 1, 2005, were flat versus last year. For the 35-week, year-to-date period, consolidated comparable store sales increased 2% over last year.
Bernard (Ben) Cammarata, chairman, and acting president and chief executive officer, of The TJX Companies, Inc. stated, “September sales trends were softer than we had expected. We attribute this largely to what we believe was consumer malaise in the aftermath of the hurricanes, as well as the negative impact of unseasonably warm weather in the Northeast, Midwest and Canada on the demand for fall fashions.
“On a broader level, having recently taken on the role of Acting CEO, I intend to lead our great and fundamentally strong company to the success I know we can achieve. To this end, I have set profitable top-line growth as our highest priority. In order to accomplish this goal, there are three major areas on which we are focusing: further strengthening execution in our merchandising organization, addressing the positioning and business strategies of three of our smaller divisions, namely A.J. Wright, HomeGoods and Bob's Stores, and narrowing our overall focus. We have already taken a major step in adding merchandising creativity to our Company, as well as strong leadership and operational talent, by naming Carol Meyrowitz president of The TJX Companies, which we announced separately today.”
Cammarata continued, “There are several specific actions we are announcing today. First, we have decided to exit our e-commerce business, as it has not delivered the sales we had planned, and pre-tax operating losses are projected to be approximately $15 million for the current fiscal year. Exiting this business will eliminate these losses going forward and allow us to better focus our energies into other areas. Second, we have developed a new strategy for Bob's Stores, which we are in the process of implementing, and have an expectation to cut its operating losses in half next year and be on a clear path to profitability. Finally, at A.J. Wright and HomeGoods, we are slowing real estate expansion and focusing growth on the types of sites where we are having success today.”
