TJX Q4 Profits Soar 75%

Earnings for the quarter reached $288.7 million, or 60 cents per share, while quarterly sales were up 9% to $4.72 billion. Earnings for the same period last year were $165 million, or 33 cents per share and sales were $4.33 billion.

Ben Cammarata, chairman and acting chief executive, said the results surpassed the company's expectations, especially since all of the retailer's divisions including its TJ Maxx and Marshalls chains, underperformed in the fiscal year's first three quarters. Improved execution and a renewed focus on off-price disciplines helped end the year with a strong fourth quarter, he said.

"The strength of our fourth-quarter performance, despite an extremely promotional retail climate, is testimony to the power of our off-price concept when well-executed," Cammarata said in announcing the year-end and quarterly numbers.

The results were helped by a $47 million one–time tax benefit from the company's repatriation of overseas earnings. Without the tax benefit and other one-time items, earnings were 46 cents per share, 2 cents more than analysts anticipated.

Full-year earnings at TJX increased 13% to $690.4 million, or $1.41 per share, compared to 2004 earnings of $609.7 million, or $1.21 per share. Sales for the year were also up by 8% at $16.06 billion from $14.91 billion a year earlier.

The Framingham, MA-based company said it expects full-year earnings for fiscal 2006 of $1.42 to $1.46 per share, based on a 2% to 3% growth in same-store sales. In addition to its TJ Maxx and Marshalls chains, TJX Cos. operates 2,381 stores under the Home Goods, Bob's Stores, Winners, TK Maxx, Home Sense and A.J. Wright names.