The TJX Companies, Inc. saw sales for the four-week period ended January 27, 2007, total $1.0 billion, up 8% over the $0.9 billion achieved during the four-week period ended January 28, 2006. For the 52 weeks ended January 27, 2007, sales reached $17.4 billion, a 9% increase over the $16.0 billion achieved last year. For the four-week period consolidated comparable store sales increased 4% above the same period last year. For the 13-week fourth quarter, consolidated comparable store sales increased 5% above last years fourth quarter. For the 52-week, year-to-date period, consolidated comparable store sales increased 4% over last year.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “I am pleased that our consolidated January comparable store sales increase of 4% was at the high end of our expected range and on top of a very strong 5% increase last year. The Company benefited from strong sales growth in most of our smaller divisions, combined with an in-line performance at Marmaxx. As we enter the new fiscal year, we will continue to execute the fundamentals of our off-price business, providing a flow of exciting brand names and tremendous values to our customers.”
Fourth Quarter Outlook
As previously announced, TJX has suffered an unauthorized intrusion into its computer systems that process and store information related to customer transactions. The company expects to record a charge of approximately a penny per share in the fourth quarter of fiscal 2007, which represents costs incurred to investigate and contain the intrusion, enhance computer security and systems, communicate with customers, as well as technical, legal, and other fees incurred through the fourth quarter. With strong sales, the company remains comfortable with its previously expected range of 48 cents – 50 cents in earnings per share from continuing operations, including this charge. Excluding this charge, the company expects to be at the high end of this range.
Beyond the above charge, TJX does not yet have enough information to reasonably estimate losses it may incur arising from this intrusion, including exposure to credit and debit card companies and banks, exposure in various legal proceedings that are pending, or may arise, and related fees and expenses, and other potential liabilities, costs and expenses. TJX does not currently expect to be able to reasonably estimate such losses at the time that earnings are released for the fiscal year on February 21, 2007.
