Sierra Trading To Open 15 Stores In 2017

The TJX Cos. plans to accelerate openings at Sierra Trading Post, with 15 stores to open in 2017, officials said Wednesday on the company’s fourth-quarter conference call.

In 2016, four stores were added. Sierra Trading Post, acquired by TJX in December 2012, closed the year with 12.

In brief comments about the outdoor retailer on the call, Ernie Herrman, CEO at TJX, said Sierra Trading continues to test its brick-and-mortar format while also “transitioning the online business to offering great off-price values every day.”

As reported, TJX said on its third-quarter conference call that it was significantly shifting STP’s online strategy from one of heavy promotions to everyday value.

Companywide, TJX Cos. sales in the fourth quarter rose 5.6 percent to $9.47 billion. Comparable-store sales increased 3 percent against a gain of 6 percent a year ago. Earnings inched up 1.7 percent to $677.9 million, or $1.03, exceeding Wall Street’s consensus estimate of $1 a share.

The company’s other banners include T.J. Maxx, Marshalls and HomeGoods in the U.S., as well as Winners, HomeSense, T.K. Maxx and Trade Secret in international markets.

In the full year, sales rose 7.2 percent to $33.2 billion and grew 5 percent on a same-store basis. Net income inched up 0.9 percent to $2.3 billion, or $3.46 a share.

For 2017, EPS is expected to climb to a range of $3.80 to $3.89, which represents a 10 percent to 12 percent increase of 2016’s levels. Excluding the benefit of a 53rd week in the current year, earnings are expected to climb between 5 and 7 percent to $3.69 to $3.78. The EPS outlook is based upon estimated consolidated comparable-store sales growth of 1 percent to 2 percent.

For the first quarter, EPS is projected to be in the range of 76 to 78 cents a share, compared to 76 cents last year. This guidance reflects an assumption that wage increases will negatively impact EPS growth by 3 percent. The combination of foreign currency and transactional foreign exchange are expected to positively impact EPS growth by 6 percent, and the recent change in accounting rules for share-based compensation will positively impact EPS growth by an additional 1 percent. The EPS outlook is based upon estimated consolidated comp growth of 0 percent to 1 percent versus last year’s 7 percent increase.

Image courtesy Sierra Trading Post