TJX Cos. Inc. recorded an impairment charge of $5 million, after tax, or one cent a share, related to Bob's Stores. The impairment charge relates to certain long-lived assets and intangible assets at Bob's Stores and represents the excess of recorded carrying values over the estimated fair value of these assets at year end. The charge caused the division to post a loss for the fourth quarter.
The owner of T.J. Maxx and Marshalls also reported that Bob's Q4 net sales advanced 6.7%% to $96 million from $90 million a year ago. Comps were up 10% versus flat comps a year ago. With the charge, the business lost $4.4 million versus a loss of $5.9 million a year ago.
In the full year, Bob's, which has 34 stores versus 36 a year ago, slightly increased its operating loss to $17.4 million from $17.36 million. Revenues increased to $310.4 million from $300.6 million.
Overall, TJX Cos Inc posted a better-than-expected quarterly profit and forecast fiscal 2009 earnings above analysts' expectations.
Net profit for the fourth quarter ended Jan. 26 was $301.1 million, or 66 cents per share, up from $205.5 million, or 43 cents per share, a year earlier. Excluding a benefit tied to a reserve set aside for an earlier data breach, TJX earned 64 cents a share, a penny above analysts' average forecast.
Quarterly sales from continuing operations rose 8% to $5.5 billion.
“We were extremely disciplined in managing inventories, which gave us the ability to buy into current trends and offer great brands and fashions at compelling values,” CEO Carol Meyrowitz said in a statement.
TJX expects to earn between 40 cents and 41 cents a share from continuing operations in the first quarter. It forecast same-store sales would increase 4 percent to 5 percent.
For the fiscal year ending Jan. 31, 2009, TJX expects to earn $2.20 to $2.25 a share from continuing operations. The forecast includes a benefit of 9 cents per share from an extra week on the company's fiscal 2009 retail calendar, TJX said.
