FRAMINGHAM, MA-Discount-retailer TJX Cos. grew by 85 stores in fiscal 2006, but charges associated with the closing of 34 A.J. Wright Stores drove down fourth quarter performance, sending earnings for the quarter plummeting by 29%, the company said recently.

Earnings for the quarter ended Jan. 27 totaled 205.5 million, or 43 cents per share, down from $288.7 million, or 60 cents per share, earned during the fourth quarter a year earlier. Overall sales were up 9% to $5.1 billion from $4.68 billion a year earlier. Sales from stores open at least one year rose 5% overall.

Carol Meyrowitz, president and CEO, said in a conference call that the closing of 34 underperforming A.J. Wright stores will allow the company to refocus on the craft store’s demographics to bring that division to the break-even point by 2008. A.J. Wright lost $1 million last year but should show a positive cash flow soon, she said.

The Framingham, MA-based discount retailer said it also expects more positive growth overall in first quarter of the new fiscal year. Net income is projected to be between 36 cents and 38 cents per share, an increase from the 34 cents per share earned in the year-ago period. Same store sales are also expected to rise 3%.

“We enter ’07 with great momentum and an organization that is energized and results driven,” said Meyrowitz , adding that 2006 was “a turning point” for the company. The firm, which operates 2,466 stores under the T.J. Maxx, Marshalls, HomeGoods, A.J. Wright, Bob’s Stores, Winners, HomeSense and TK Maxx flags in the United States, Canada and Europe, has recently been struggling with a computer security breach that resulted in the theft of customer information. TJX said the security breach cost approximately $5 million, or 1 cent per share, in the fourth quarter including costs incurred to investigate the security lapse, enhance computer security and communicate with customers along with legal, technical and other fees. Meyrowitz said TJX officials do not yet have enough information to estimate the total losses it may still incur as a result of that intrusion.

For the fiscal year ending Jan. 26, 2008, the company said it expects per share earnings of between $1.80 to $1.85, reflecting an increase of between 10% and 13%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.