The TJX Companies, Inc. Sees Strong Momentum Continue; Reports Above-Plan Third Quarter EPS Growth; Raises Full-Year Guidance

  The TJX Companies, Inc. Sees Strong Momentum Continue; Reports Above-Plan
  Third Quarter EPS Growth; Raises Full-Year Guidance

Business Wire

FRAMINGHAM, Mass. -- November 13, 2012

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 third quarter ended October 27, 2012. Net sales for
the third quarter of Fiscal 2013 increased 11% to $6.4 billion and
consolidated comparable store sales increased 7%. Net income for the third
quarter was $462 million and diluted earnings per share were $.62, a 17%
increase over $.53 per share last year.

For the first nine months of Fiscal 2013, net sales were $18.2 billion, a 10%
increase over last year, and consolidated comparable store sales increased 8%
over the same period last year. Net income was $1.3 billion, and diluted
earnings per share were $1.73 compared to $1.31 in the same period last year.
Last year’s results include a number of items (detailed under “Items Impacting
Comparability” below) that impacted the comparability of earnings per share.
Excluding these items, diluted earnings per share for the first nine months of
Fiscal 2013 increased 26% over the adjusted $1.37 last year.

Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc.,
commenting first on Hurricane Sandy, stated, “On behalf of everyone at TJX,
I'd like to express how sorry we are for the suffering so many are
experiencing due to Hurricane Sandy. Our hearts go out to our Associates,
friends, families and business associates who have been impacted by this
storm. TJX has made a substantial donation to the American Red Cross Disaster
Relief Fund and we held a major fundraising event in our U.S. stores with a
match from our Company. We sincerely hope that our efforts will help those
impacted by this natural disaster.”

Regarding the Company's results, Meyrowitz commented, “We are extremely
pleased that our strong momentum continued in the third quarter, demonstrating
once again the power of TJX to post strong sales and profit margin gains on
top of strong year-over-year comparisons. Our 17% increase in earnings per
share and 7% consolidated comparable store sales growth both significantly
exceeded our original expectations and every division delivered excellent
performance. Customer traffic was up at all divisions in the U.S., Canada and
Europe and drove the comparable store sales increases, which we believe is a
great indicator of the staying power of our value proposition on exciting
fashions and brands. At this time, we are raising our full-year guidance.”

Meyrowitz continued, “We have terrific opportunities for the holiday selling
season and fourth quarter: we will be shipping fresh gift selections to our
stores continuously throughout the holiday season; our marketing campaigns
will be seen by more people; we have fantastic in-store initiatives planned;
and of course, we will be offering consumers great fashions and brands at
extreme values! In addition to our excitement about our business for the near
term, we are very excited about our long-term opportunities. We are leveraging
our four powerful divisions and have deep confidence in our ability to
continue delivering profitable growth and high financial returns for many,
many years.”

Sales by Business Segment

The Company’s comparable store sales and net sales by division, in the third
quarter, were as follows:

                                         
                 Third Quarter             Third Quarter
                 Comparable Store Sales^1  Net Sales ($ in millions)^2,3
               FY2013        FY2012     FY2013            FY2012
In the U.S.:                                            
Marmaxx^4       +7%           +4%        $4,161            $3,790
HomeGoods       +6%           +5%        $638              $551
International:                                          
TJX Canada      +4%           -2%        $769              $705
TJX Europe      +11%          0%         $843              $747
                                                       
TJX             +7%           +3%        $6,411            $5,793

^1Comparable store sales outside the U.S. calculated on a constant currency
basis, which removes the effect of changes in currency exchange rates. ^2Sales
in Canada and Europe include the impact of foreign currency exchange rates.
See below. ^3Figures may not foot due to rounding. ^4Combination of T.J. Maxx
and Marshalls.

Impact of Foreign Currency Exchange Rates

Changes in foreign currency exchange rates affect the translation of sales and
earnings of the Company’s international businesses into U.S. dollars for
financial reporting purposes. In addition, ordinary-course inventory-related
hedging instruments are marked to market at the end of each quarter. Changes
in currency exchange rates affect the magnitude of these translations and
adjustments, and can have a material impact when there is significant
volatility in currency exchange rates.

The movement in foreign currency exchange rates had a neutral impact on
consolidated net sales growth in the third quarter of Fiscal 2013 versus the
prior year’s third quarter. For the first nine months of Fiscal 2013, the
movement of foreign currency exchange rates had a one percentage point
negative impact on consolidated net sales growth. The impact of foreign
currency exchange rates on earnings per share is discussed below under “Items
Impacting Comparability.”

A table detailing the impact of foreign currency on TJX pretax earnings and
margins, as well as those of its international businesses, can be found in the
Investor Information section of the Company’s website, www.tjx.com.

Items Impacting Comparability

For the third quarter of Fiscal 2013 foreign currency exchange rates had a
neutral impact on earnings per share, compared with a $.01 per share positive
impact last year.

For the first nine months of Fiscal 2013, comparability to the prior year was
impacted by the A.J. Wright consolidation in Fiscal 2012, detailed in the
table below:

                                         
                                           First Nine Months
                                         FY2013    FY2012
Reported EPS                               $1.73     $1.31
Impact of A.J. Wright Store Closings       -          $.04
Store Conversion/Grand Re-Openings Costs   -          $.02
Adjusted EPS                               $1.73      $1.37
                                                      

The first nine months of Fiscal 2012 included first quarter costs associated
with the A.J. Wright consolidation, primarily additional lease obligations for
store closings and additional operating losses as well as the costs related to
the conversion and grand re-opening of certain former A.J. Wright stores to
T.J. Maxx, Marshalls and HomeGoods banners.

On a reported basis, diluted earnings per share for the first nine months of
Fiscal 2013 were $1.73 compared to $1.31 last year. On an adjusted basis,
excluding the items detailed above, diluted earnings per share for the first
nine months of Fiscal 2013 represented a 26% increase over last year’s
adjusted $1.37.

For the first nine months of Fiscal 2013, foreign currency exchange rates had
a neutral impact on earnings per share, compared with a $.01 per share
positive impact last year.

Third Quarter Items

As previously reported, during the third quarter, the Company recorded a $.02
per share non-cash charge for the cumulative impact of a correction to its
pension accrual for prior fiscal years, which was not anticipated in its
original guidance. Additionally, the Company recorded a $.01 per share
non-operating charge due to an adjustment in the Company’s reserve for former
operations relating to closed stores, which was not anticipated in the
Company’s most recent guidance.

Margins

For the third quarter of Fiscal 2013, the Company’s consolidated pretax profit
margin was 11.7%, up 0.2 percentage points over the prior year. The increase
was primarily driven by merchandise margin improvement, partially offset by
the 0.6 percentage point negative impact of the third quarter items mentioned
above. Additionally, foreign currency had a 0.2 percentage point negative
impact on year-over-year comparisons.

The gross profit margin for the third quarter of Fiscal 2013 was 28.8%, 0.7
percentage points above the prior year. The increase was driven entirely by
merchandise margin improvement partially offset by a negative impact from
mark-to-market adjustments on the Company's inventory-related hedges.

Selling, general and administrative costs as a percent of sales were 17.0% in
the third quarter, a 0.5 percentage point increase over the prior year’s
ratio, primarily due to the combined negative impact of 1.1 percentage points
from the following factors: the third quarter items mentioned above, increased
incentive compensation accruals arising from the Company’s above-plan results,
and investments to support the Company’s growth, including talent and
infrastructure.

Inventory

Total inventories as of October 27, 2012, were $3.3 billion, compared with
$3.7 billion at the end of the third quarter last year. Consolidated
inventories on a per-store basis, including the distribution centers, at
October 27, 2012, were down 14% (down 13% on a constant currency basis) versus
being up 14% at the end of the third quarter last year. Further, the Company’s
third quarter store inventory turns were faster than the prior year. The
Company enters the fourth quarter with excellent inventory levels and is very
well positioned to buy into the plentiful opportunities in the marketplace and
continue shipping ever-changing merchandise selections to its stores
throughout the holiday selling season.

Share Repurchases

During the third quarter, the Company spent a total of $400 million in
repurchases of TJX stock, retiring 8.9 million shares. For the first nine
months of Fiscal 2013, the Company has spent a total of $950 million in
repurchases of TJX stock, retiring 22.5 million shares, and it continues to
expect to repurchase approximately $1.2 billion to $1.3 billion of TJX stock
in Fiscal 2013. The Company may adjust the amount of this spending up or down.

Fourth Quarter and Full Year Fiscal 2013 Outlook

For the fourth quarter of Fiscal 2013, the Company expects diluted earnings
per share to be in the range of $.72 to $.75, which would represent a 16% to
21% increase over $.62 per share last year. This outlook is based upon
estimated consolidated comparable store sales growth of flat to 2%. The
Company’s fourth quarter guidance includes an expected $.07 per share benefit
from the 53^rd week in the Company’s Fiscal 2013 calendar. Excluding this
benefit, the adjusted guidance in the range of $.65 to $.68 represents a 5% to
10% increase over the prior year.

For the fiscal year ending February 2, 2013, the Company is raising its
guidance for diluted earnings per share by $.01. The Company now expects
diluted earnings per share for the full year to be in the range of $2.45 to
$2.48, compared with $1.93 on a reported basis in Fiscal 2012. This guidance
represents a 23% to 25% increase over the prior year’s adjusted earnings per
share from continuing operations of $1.99 (detailed below) and is now based
upon estimated consolidated comparable store sales growth of 5% to 6%. In
addition, the Company’s full-year guidance includes the $.03 per share
negative impact from the third quarter items discussed above.

                                         
                                           Full Year
                                           FY2013E        FY2012
                                         (53 weeks)     (52 weeks)
EPS from continuing operations             $2.45 - $2.48   $1.93
Impact of A.J. Wright Closings             -               $.04
Store Conversion/Grand Re-Openings Costs   -               $.02
Adjusted EPS from continuing operations    $2.45 - $2.48   $1.99
                                                           

The Company’s full-year guidance also includes an expected $.07 per share
benefit from the 53^rd week in the Company’s Fiscal 2013 calendar. Excluding
this estimated benefit, the adjusted guidance in the range of $2.38 to $2.41
represents a 20% to 21% increase over the prior year’s adjusted earnings per
share.

The Company’s earnings guidance for the fourth quarter and full year Fiscal
2013 assumes that currency exchange rates will remain unchanged from current
levels.

Stores by Concept

During the third quarter ended October 27, 2012, the Company increased its
store count by a net of 76 stores. The Company increased its square footage by
4% over the same period last year.

                                 
               Store Locations     Gross Square Feet*
               FY13 Third Quarter   FY13 Third Quarter
                                  (in millions)
             Beginning   End    Beginning    End
In the U.S.:                               
T.J. Maxx     1,005       1,030  29.4         30.0
Marshalls     891         911    27.7         28.2
HomeGoods     393         414    9.8          10.4
TJX Canada:                                
Winners       220         222    6.4          6.5
HomeSense     87          88     2.1          2.1
Marshalls     12          14     0.4          0.5
TJX Europe:                                
T.K. Maxx     338         343    10.7         10.9
HomeSense     24          24     0.5          0.5
                                          
TJX           2,970       3,046  87.0         88.9

*Square feet figures may not foot due to rounding.

About The TJX Companies, Inc.

The TJX Companies, Inc. is the leading off-price retailer of apparel and home
fashions in the U.S. and worldwide. The Company operates 1,030 T.J. Maxx, 911
Marshalls, and 414 HomeGoods stores in the United States; 222 Winners, 88
HomeSense, and 14 Marshalls stores in Canada; and 343 T.K. Maxx and 24
HomeSense stores in Europe. TJX’s press releases and financial information are
also available at www.tjx.com.

Fiscal 2013 Third Quarter Earnings Conference Call

At 11:00 a.m. ET today, Carol Meyrowitz, Chief Executive Officer of TJX, will
hold a conference call with stock analysts to discuss the Company’s third
quarter Fiscal 2013 results, operations and business trends. A real-time
webcast of the call will be available at www.tjx.com. A replay of the call
will also be available by dialing (866) 367-5577 through Tuesday, November 20,
2012 or at www.tjx.com.

November Fiscal 2013 Sales Recorded Call

Additionally, the Company expects to release its November 2012 sales results
on Thursday, November 29, 2012, at approximately 8:15 a.m. ET. Concurrent with
that press release, a recorded message with more detailed information
regarding TJX’s November sales results, operations and business trends will be
available at www.tjx.com, or by calling (703) 736-7248 through Thursday,
December 6, 2012.

Non-GAAP Financial Information

The Company has used non-GAAP financial measures in this press release. The
Company uses the term “reported” to refer to financial measures prepared in
accordance with accounting principles generally accepted in the United States
(GAAP) and the term “adjusted” to refer to non-GAAP financial information
adjusted to exclude a number of identified items. The Company believes that
the presentation of adjusted financial results provides additional information
on comparisons between periods including underlying trends of its business by
excluding certain items that affect overall comparability. Non-GAAP financial
measures should be considered in addition to, and not as an alternative for,
the Company’s reported results prepared in accordance with GAAP.

Important Information at Website

Archived versions of the Company’s recorded messages and conference calls are
available at the Investor Information section of www.tjx.com after they are no
longer available by telephone as well as reconciliations of non-GAAP financial
measures to GAAP financial measures, and other financial information. The
Company routinely posts information that may be important to investors in the
Investor Information section at www.tjx.com. The Company encourages investors
to consult that section of its website regularly.

Forward-looking Statement

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: Various statements made in this release are forward-looking and involve
a number of risks and uncertainties. All statements that address activities,
events or developments that we intend, expect or believe may occur in the
future are forward-looking statements. The following are some of the factors
that could cause actual results to differ materially from the forward-looking
statements: buying and inventory management; operational expansion and
management of large size and scale; customer trends and preferences; market,
banner, geographic and category expansion; marketing, advertising and
promotional programs; competition; personnel recruitment and retention; global
economic conditions and consumer spending; data security; information systems
and technology; seasonal influences; adverse or unseasonable weather; serious
disruptions and catastrophic events; corporate and banner reputation;
merchandise quality and safety; international operations; merchandise
importing; commodity pricing; foreign currency exchange rates; fluctuations in
quarterly operating results; market expectations; acquisitions and
divestitures; compliance with laws, regulations and orders; changes in laws
and regulations; outcomes of litigation, legal matters and proceedings; tax
matters; real estate activities; cash flow and other factors that may be
described in our filings with the Securities and Exchange Commission. We do
not undertake to publicly update or revise our forward-looking statements even
if experience or future changes make it clear that any projected results
expressed or implied in such statements will not be realized.


The TJX Companies, Inc. and Consolidated Subsidiaries
Financial Summary
(Unaudited)
(In Thousands Except Per Share Amounts)

                      Thirteen Weeks Ended       Thirty-Nine Weeks Ended
                       October 27,  October 29,  October 27,   October 29,
                       2012          2011          2012           2011
                                                               
Net sales              $ 6,410,913   $ 5,793,128   $ 18,154,558   $ 16,481,697
                                                                  
Cost of sales,
including buying and     4,566,073     4,166,587     13,006,874     11,969,880
occupancy costs
Selling, general and
administrative           1,090,282     954,238       3,010,922      2,832,405
expenses
Interest expense,       6,089        8,551        24,098        26,577
net
                                                                  
Income before
provision for income     748,469       663,752       2,112,664      1,652,835
taxes
Provision for income    286,918      257,265      810,821       632,059
taxes
                                                                  
Net income             $ 461,551     $ 406,487     $ 1,301,843    $ 1,020,776
                                                                  
Diluted earnings per   $ 0.62        $ 0.53        $ 1.73         $ 1.31
share
                                                                  
Cash dividends         $ 0.115       $ 0.095       $ 0.345        $ 0.285
declared per share
                                                                  
Weighted average
common shares –          745,741       766,052       751,034        776,978
diluted
                                                                    


The TJX Companies, Inc. and Consolidated Subsidiaries
Condensed Balance Sheets
(Unaudited)
(In Millions)

                                                  October 27,  October 29,
                                                   2012          2011
                                                                 
ASSETS
Current assets:
Cash and cash equivalents                          $  1,641.9    $  956.9
Short-term investments                                201.0         71.7
Accounts receivable and other current assets          470.0         602.3
Current deferred income taxes, net                    84.6          81.2
Merchandise inventories                              3,297.1      3,706.0
                                                                 
Total current assets                                 5,694.6      5,418.1
                                                                 
Property and capital leases, net of depreciation      3,055.7       2,708.3
Other assets                                          241.8         224.6
Goodwill and tradename, net of amortization          180.0        180.0
                                                                 
TOTAL ASSETS                                       $  9,172.1    $  8,531.0
                                                                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable                                   $  2,059.2    $  2,048.4
Accrued expenses and other current liabilities       1,539.8      1,331.1
                                                                 
Total current liabilities                            3,599.0      3,379.5
                                                                 
Other long-term liabilities                           920.9         731.3
Non-current deferred income taxes, net                411.3         462.4
Long-term debt                                        774.5         774.5
                                                                 
Shareholders’ equity                                 3,466.4      3,183.3
                                                                 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY         $  9,172.1    $  8,531.0
                                                                    


The TJX Companies, Inc. and Consolidated Subsidiaries
Condensed Statements of Cash Flows
(Unaudited)
(In Millions)

                                                   Thirty-Nine Weeks Ended
                                                    October 27,   October 29,
                                                    2012           2011
                                                                   
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                          $ 1,301.8      $ 1,020.8
Depreciation and amortization                         372.4          356.9
Deferred income tax provision                         62.1           197.3
Share-based compensation                              49.6           49.8
Decrease (increase) in accounts receivable and        14.0           (142.5  )
other assets
(Increase) in merchandise inventories                 (337.0   )     (931.5  )
Increase in accounts payable                          407.0          358.9
Increase (decrease) in accrued expenses and other     253.9          (46.7   )
liabilities
Other                                                (43.8    )    (32.2   )
                                                                   
Net cash provided by operating activities            2,080.0      830.8   
                                                                   
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions                                    (775.6   )     (661.4  )
Purchases of short-term investments                   (262.5   )     (112.8  )
Sales and maturities of short-term investments        155.5          117.7
Other                                                34.4         11.4    
Net cash (used in) investing activities              (848.2   )    (645.1  )
                                                                   
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for repurchase of common stock               (1,004.4 )     (974.8  )
Proceeds from issuance of common stock                100.9          168.0
Cash dividends paid                                   (240.3   )     (203.5  )
Other                                                41.1         29.7    
Net cash (used in) financing activities              (1,102.7 )    (980.6  )
                                                                   
Effect of exchange rate changes on cash              5.7          10.0    
                                                                   
Net increase (decrease) in cash and cash              134.8          (784.9  )
equivalents
Cash and cash equivalents at beginning of year       1,507.1      1,741.8 
                                                                   
Cash and cash equivalents at end of period          $ 1,641.9     $ 956.9   
                                                                             


The TJX Companies, Inc. and Consolidated Subsidiaries
Selected Information by Major Business Segment
(Unaudited)
(In Thousands)

                    Thirteen Weeks Ended       Thirty-Nine Weeks Ended
                     October 27,  October 29,   October 27,   October 29,
                     2012          2011          2012           2011
Net sales:                                                   
U.S. segments:
Marmaxx              $ 4,161,409   $ 3,790,340   $ 12,026,518   $ 10,969,135
HomeGoods              637,514       551,066       1,830,950      1,569,658
A.J. Wright            -             -             -              9,229
International
segments:
TJX Canada             768,967       705,061       2,069,879      1,934,821
TJX Europe            843,023      746,661      2,227,211     1,998,854  
Total net sales      $ 6,410,913   $ 5,793,128   $ 18,154,558   $ 16,481,697 
                                                                
Segment profit
(loss):
U.S. segments:
Marmaxx              $ 576,505     $ 501,559     $ 1,762,512    $ 1,471,462
HomeGoods              76,790        63,128        206,754        146,059
A.J. Wright            -             -             -              (49,291    )
International
segments:
TJX Canada             127,212       125,936       290,938        254,328
TJX Europe            76,840       42,391       113,293       18,398     
Total segment          857,347       733,014       2,373,497      1,840,956
profit
                                                                
General corporate      102,789       60,711        236,735        161,544
expenses
Interest expense,     6,089        8,551        24,098        26,577     
net
Income before
provision for        $ 748,469     $ 663,752     $ 2,112,664    $ 1,652,835  
income taxes
                                                                             

            The TJX Companies, Inc. and Consolidated Subsidiaries
                  Notes to Consolidated Condensed Statements

1.On January 5, 2012, TJX announced that its Board of Directors approved a
    two-for-one stock split of the Company’s common stock in the form of a
    stock dividend, payable February 2, 2012 to shareholders of record at the
    close of business on January 17, 2012. The stock split resulted in the
    issuance of 372 million shares of common stock. All historical per share
    amounts and references to common stock activity, as well as basic and
    diluted share amounts, have been adjusted to reflect the two-for-one stock
    split.
2.During the third quarter ended October 27, 2012, TJX repurchased 8.9
    million shares of its common stock at a cost of $400 million. During the
    nine months ended October 27, 2012, TJX repurchased 22.5 million shares of
    its common stock at a cost of $950 million, with $225 million under the $1
    billion stock repurchase plan approved in February 2011, completing the
    plan, and $725 million under the $2 billion stock repurchase program
    approved by the Board of Directors early in fiscal 2013. TJX records the
    repurchase of its stock on a cash basis, and the amounts reflected in the
    financial statements may vary from the above amounts due to the timing of
    settlement of repurchases.
3.In the fourth quarter of fiscal 2011, TJX’s Board of Directors approved
    the consolidation of its A.J. Wright division whereby 90 A.J. Wright
    stores were converted into T.J. Maxx, Marshalls or HomeGoods stores and
    the remaining 72 stores, its two distribution centers and home office were
    closed. The majority of the costs to consolidate A.J. Wright were
    recognized in the fourth quarter of fiscal 2011 but due to the timing of
    the store closings the additional closing costs (primarily lease related
    obligations) and additional operating losses were reported as a $49
    million A.J. Wright segment loss in the first quarter of fiscal 2012. In
    addition, the first quarter of fiscal 2012 included costs related to the
    conversion of the 90 A.J. Wright stores to other banners (primarily store
    payroll and occupancy costs during the approximate eight to twelve-week
    period in which the stores were closed) and costs related to grand opening
    events when the stores re-opened. These costs totaled $20 million, with
    $17 million reflected in the Marmaxx segment and $3 million in the
    HomeGoods segment for the nine months ended October 29, 2011.

Contact:

The TJX Companies, Inc.
Sherry Lang
Senior Vice President
Global Communications
(508) 390-2323
 
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