TJX Net Falls 15 Percent in Fourth Quarter

FRAMINGHAM, Mass.-Rising expenses hurt the bottom line of The TJX Cos. in the fourth quarter, to the tune of a 15 percent decrease in net income to $334.4 million.

The off-price retail company saw its selling, general and administrative expenses jump 20 percent in dollars and 192 basis points as a percentage of sales, to 17.7 percent. In addition, an increase in cost of goods sold resulted in a 34-basis point slimming down in gross margin, which was 26.3 percent. Net sales for the quarter, which ended on Jan. 29, rose 6.6 percent to $6.3 billion, which included an increase of 2 percent in same-store sales.

In spite of the decline in fourth-quarter profit, net income for the full fiscal year gained 11 percent to $1.3 billion, on an 8.2 percent pickup in net sales to $21.9 billion. Carol Meyrowitz, TJX's chief executive officer, said the results for the year stemmed from "the extraordinary flexibility of our off-price business model and our ability to successfully utilize that flexibility to our advantage."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Adriana Hoyos Relaunches Brand at High Point Market

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.