TJX First-Quarter Profit Falls 20 Percent
May 18, 2011,
FRAMINGHAM, Mass.-First-quarter net income for The TJX Cos. took a 20 percent dive to $266 million, as rising expenses and reduced gross margin took its toll.
Selling, general and administrative expenses jumped 16 percent in the quarter, which ended on April 30, and rose 191 basis points as a percentage of sales to 18.3 percent. TJX said the rise in expenses occurred because of costs related to the consolidation of the A.J. Wright division and the conversion of the stores into T.J. Maxx, Marshalls and HomeGoods stores. In addition, gross margin dropped 58 basis points in the quarter to 26.7 percent.