TJX Cos.' fourth-quarter profit fell 15% as charges related to closure of the A.J. Wright chain offset a bigger-than-expected increase in revenue at its other outlets.
For the quarter ended Jan. 29, the parent of T.J. Maxx and Marshalls posted a profit of $334.4 million, or 84 cents a share, down from $395 million, or 94 cents a share, a year earlier. Excluding the impacts of A.J. Wright store closings, earnings from continuing operations rose to $1.05 in the latest quarter. The company was expecting a per-share profit slightly above $1.01.
Net sales rose 6.6% to $6.33 billion–topping the company's November estimate of $6.1 billion to $6.2 billion–and were up 2% on a same-store basis.
For the current quarter, the company projected per-share earnings of 75 cents to 82 cents, a range that is shy of the 87-cent-a-share profit that analysts had been predicting, according to a Thomson Reuters poll.
For the new year, the company forecast adjusted earnings of $3.78 to $3.93 a share, bracketing analysts' $3.82 average estimate.
TJX increased its dividend for the 15th straight year, boosting the quarterly payout 27% to 19 cents a share. Its board approved the buyback of an additional $1 billion in stock. The company already had the authority to repurchase $600 million in equity and now plans to buy $1.2 billion of its stock during the current fiscal year. A raft of companies have ramped up shareholder friendly moves as corporate liquidity has recovered.
