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The TJX Companies, Inc. Reports First Quarter Fiscal 2006 Results.

Article Excerpt
FRAMINGHAM, Mass. -- The TJX Companies, Inc. (NYSE: TJX), the leading off-price retailer of apparel and home fashions in the U.S. and worldwide, today announced sales and earnings results for the first quarter ended April 30, 2005. Net sales for the first quarter were $3.7 billion, a 9% increase over last year. Consolidated comparable store sales increased 3% over last year's strong 8% increase. Net income was $149 million and diluted earnings per share were $.30 versus $.32 in the prior year.

Edmond English, President and Chief Executive Officer of The TJX Companies, Inc., commented, "We knew the first quarter would be challenging, since we were up against our most difficult comparisons of the year, given last year's extremely strong comparable store sales and margin performance. This challenge was further compounded by unseasonable weather that prevailed across several major trading areas, resulting in first quarter sales and earnings coming in slightly below our expectations. That said, I am encouraged by several aspects of our business. First, in regions with warm weather, our business was very strong, which bodes well for the balance of the season. Second, inventory and expense management has been strong. Open-to-buy positions are more liquid than last year across virtually all our businesses, allowing us to capitalize upon the abundant buying opportunities in the market. Finally, I am encouraged by the progress we are seeing at some of our younger businesses, and the specific actions we have taken to improve their profitability and earnings growth.

"At The Marmaxx Group, the combination of T.J. Maxx and Marshalls, first quarter top-line results were in line with our expectations, with sales increasing 6% and comparable store sales increasing 3%. Segment profit was $268 million and segment profit margin was 10.4%, both less than we had planned, but against exceptionally strong profit performance last year when merchandise margins reached the highest levels for the first quarter in the history of The Marmaxx Group. Following a very strong February, sales weakened in March due to difficult weather patterns, and we took aggressive markdowns to keep our stores fresh. We are encouraged by robust sales in regions where the weather was seasonable, especially on the West Coast and in...