TJX Q4 Profit Rises 42 Percent

February 22, 2012
SGB Executive SGB Update
by

The TJX Companies, Inc. said that for the 13-week fourth quarter ended Jan. 28, net sales were
$6.7 billion, a 6 percent increase over the prior year. Consolidated
comparable store sales for the quarter increased 7 percent over the
prior year.

Income from continuing operations for the fourth quarter was
$475 million, and diluted earnings per share from continuing operations
were 62 cents. Excluding non-recurring items, the $.62 in diluted earnings per share for the fourth quarter
represents a 17 percent increase over the adjusted $.53 in the prior
year.

All earnings per share figures reflect the company's recent two-for-one stock split.

Net sales for the 52-week fiscal year were $23.2 billion, a 6 percent increase over last year. Consolidated comparable store sales for the year increased 4 percent over the prior year's 4 percent increase. Income from continuing operations for the 52-week fiscal year was $1.5 billion, and diluted earnings per share from continuing operations were $1.93. A number of items impacted the comparability of earnings per share for both periods. Excluding these items, adjusted diluted earnings per share from continuing operations for the fiscal year were $1.99, a 14 percent increase over the adjusted $1.75 in the prior year.

Carol Meyrowitz, chief executive officer of The TJX Companies, Inc., stated, “I am extremely proud of our performance in 2011, which marked another great year for TJX and underscores the power of our flexible business model to perform in almost any kind of economic environment. Consolidated comps increased 4 percent on top of 4 percent and 6 percent increases in the two prior years, respectively, and earnings grew substantially over significant growth in each of the past two years. Above all, we delivered extraordinary values on ever-changing assortments of current fashions and brands to consumers, and ended the year with significant gains in customer traffic. We enter a new fiscal year with considerable momentum in our business and are off to a very strong start in 2012. With favorable weather patterns in February, comp store sales are trending toward a 7 percent increase for the month. We believe our values separate us from other retailers and will continue to draw more customers to our stores. Inventories are lean as we begin the year, which positions us very well to flow fresh spring merchandise to our stores. Importantly, we are very proud of our ability to simultaneously make significant investments in the future growth of our business while continuing to deliver on our sales and earnings expectations. I am optimistic about our near-term abilities and remain very confident in our long-term vision to grow TJX to a $40 billion company and beyond.”

Increase in Shareholder Distributions

The company also announced today its plans to repurchase approximately $1.2 billion to $1.3 billion of TJX stock during the Fiscal Year ending February 2, 2013. With approximately $225 million remaining at Fiscal 2012 year end under the company's existing stock repurchase program, the company's Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $2 billion of TJX common stock from time to time. The new authorization would represent approximately 8 percent of the company's outstanding shares at current prices. The new stock repurchase program marks the 13th program approved by the Board since 1997. Over this period, the company has spent approximately $10.0 billion on the repurchase of TJX stock. In Fiscal 2012, the company spent a total of $1.4 billion to repurchase TJX stock, retiring 49.7 million shares on a post-split basis. During the fourth quarter, the company spent a total of $402 million to repurchase TJX stock, retiring 12.5 million shares on a post-split basis. Under the company's repurchase plans, share repurchases may be made from time to time in market or private transactions and may include derivative transactions. The repurchase program announced today has no time limit and may be suspended or discontinued at any time.

The company also intends to increase the regular quarterly dividend on its common stock to be declared in April 2012 and payable in May 2012 to $.115 per share, subject to the approval of the company's Board of Directors. This increase would represent a 21 percent increase in the current per share dividend and mark the 16th consecutive year that the company has raised the dividend. Over this period of time, the company's dividend has grown at a compound annual rate of 23 percent.

Meyrowitz commented, “Our business continues to deliver superior financial returns for shareholders and generates enormous amounts of excess cash. In Fiscal 2013, we plan to invest to support our growth, including investments in our supply chain and infrastructure, new stores, store remodels, and building an e-commerce business. Simultaneously, we plan to continue our large share buyback program, with $1.2 billion to $1.3 billion of repurchases planned for Fiscal 2013, and to significantly increase our dividend. The new stock repurchase authorization, the planned dividend increase, and the two-for-one stock split earlier this year all underscore our confidence in our ability to continue to deliver significant increases in sales, earnings, and cash flow, and generate superior financial returns.”

TJX Q4 Profit Rises 42 Percent

SGB Executive SGB Update
by

The TJX Companies, Inc. said that for the 13-week fourth quarter ended Jan. 28, net sales were
$6.7 billion, a 6 percent increase over the prior year. Consolidated
comparable store sales for the quarter increased 7 percent over the
prior year.

Income from continuing operations for the fourth quarter was
$475 million, and diluted earnings per share from continuing operations
were 62 cents. Excluding non-recurring items, the $.62 in diluted earnings per share for the fourth quarter
represents a 17 percent increase over the adjusted $.53 in the prior
year.

All earnings per share figures reflect the company's recent two-for-one stock split.

Net sales for the 52-week fiscal year were $23.2 billion, a 6 percent increase over last year. Consolidated comparable store sales for the year increased 4 percent over the prior year's 4 percent increase. Income from continuing operations for the 52-week fiscal year was $1.5 billion, and diluted earnings per share from continuing operations were $1.93. A number of items impacted the comparability of earnings per share for both periods. Excluding these items, adjusted diluted earnings per share from continuing operations for the fiscal year were $1.99, a 14 percent increase over the adjusted $1.75 in the prior year.

Carol Meyrowitz, chief executive officer of The TJX Companies, Inc., stated, “I am extremely proud of our performance in 2011, which marked another great year for TJX and underscores the power of our flexible business model to perform in almost any kind of economic environment. Consolidated comps increased 4 percent on top of 4 percent and 6 percent increases in the two prior years, respectively, and earnings grew substantially over significant growth in each of the past two years. Above all, we delivered extraordinary values on ever-changing assortments of current fashions and brands to consumers, and ended the year with significant gains in customer traffic. We enter a new fiscal year with considerable momentum in our business and are off to a very strong start in 2012. With favorable weather patterns in February, comp store sales are trending toward a 7 percent increase for the month. We believe our values separate us from other retailers and will continue to draw more customers to our stores. Inventories are lean as we begin the year, which positions us very well to flow fresh spring merchandise to our stores. Importantly, we are very proud of our ability to simultaneously make significant investments in the future growth of our business while continuing to deliver on our sales and earnings expectations. I am optimistic about our near-term abilities and remain very confident in our long-term vision to grow TJX to a $40 billion company and beyond.”

Increase in Shareholder Distributions

The company also announced today its plans to repurchase approximately $1.2 billion to $1.3 billion of TJX stock during the Fiscal Year ending February 2, 2013. With approximately $225 million remaining at Fiscal 2012 year end under the company's existing stock repurchase program, the company's Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $2 billion of TJX common stock from time to time. The new authorization would represent approximately 8 percent of the company's outstanding shares at current prices. The new stock repurchase program marks the 13th program approved by the Board since 1997. Over this period, the company has spent approximately $10.0 billion on the repurchase of TJX stock. In Fiscal 2012, the company spent a total of $1.4 billion to repurchase TJX stock, retiring 49.7 million shares on a post-split basis. During the fourth quarter, the company spent a total of $402 million to repurchase TJX stock, retiring 12.5 million shares on a post-split basis. Under the company's repurchase plans, share repurchases may be made from time to time in market or private transactions and may include derivative transactions. The repurchase program announced today has no time limit and may be suspended or discontinued at any time.

The company also intends to increase the regular quarterly dividend on its common stock to be declared in April 2012 and payable in May 2012 to $.115 per share, subject to the approval of the company's Board of Directors. This increase would represent a 21 percent increase in the current per share dividend and mark the 16th consecutive year that the company has raised the dividend. Over this period of time, the company's dividend has grown at a compound annual rate of 23 percent.

Meyrowitz commented, “Our business continues to deliver superior financial returns for shareholders and generates enormous amounts of excess cash. In Fiscal 2013, we plan to invest to support our growth, including investments in our supply chain and infrastructure, new stores, store remodels, and building an e-commerce business. Simultaneously, we plan to continue our large share buyback program, with $1.2 billion to $1.3 billion of repurchases planned for Fiscal 2013, and to significantly increase our dividend. The new stock repurchase authorization, the planned dividend increase, and the two-for-one stock split earlier this year all underscore our confidence in our ability to continue to deliver significant increases in sales, earnings, and cash flow, and generate superior financial returns.”

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