TJ Maxx 2000 Annual Report Download - page 24

THE TJX COMPANIES, INC.
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WINNERS:
Fiscal Year Ended January
Dollars In Millions 2001 2000 1999
Net sales $563.3 $466.8 $387.4
Operating income $ 71.1 $ 54.9 $ 39.8
Operating margin 12.6% 11.8% 10.3%
Percent increase in same store sales (local currency) 8% 8% 13%
Stores in operation at end of period 117 100 87
Winners’ same store sales were above plan with an increase of 8% on top of an 8% increase in the prior year. Operating income increased
29% in fiscal 2001 on top of a 38% increase in fiscal 2000. Winners is the leading off-price retailer in Canada which is a major factor in its
growth. The growth in Winners’ store base and their strong same store sales performance are the prime reasons for the improvement in
Winners’ operating margin in fiscal 2001 and fiscal 2000. We expect to open 15 Winners stores in fiscal 2002, increasing its store base by
13%. In addition, Winners plans to introduce our HomeSense division (a HomeGoods–like concept) to Canada with the opening of seven
stores in fiscal 2002.
T.K. MAXX:
Fiscal Year Ended January
Dollars In Millions 2001 2000 1999
Net sales $389.1 $298.7 $222.1
Operating income (loss) $ 10.9 $ 6.5 $ (2.2)
Operating margin 2.8% 2.2% (1.0)%
Percent increase in same store sales (local currency) 8% 12% 12%
Stores in operation at end of period 74 54 39
T.K. Maxx in Europe recorded a same store sales increase of 8% on top of a 12% increase in the prior year. Operating income for fiscal 2001
includes a $6.3 million charge for the cost of closing its three Netherlands stores as well as an operating loss of $3.3 million for these stores.
T.K. Maxx’s operating income in the United Kingdom and Ireland, which excludes the Netherlands stores, is $20.5 million in fiscal 2001,
$10.1 million in fiscal 2000 and $3.3 million in fiscal 1999. The growth in T.K. Maxx’s operating income in these two countries, for fiscal 2001
and fiscal 2000, is primarily due to the growth in their store base and their strong same store sales performance. We have increased our
expansion plans for T.K. Maxx in the United Kingdom and Ireland and expect to add to its store base by a net of 27 stores in fiscal 2002.
HOMEGOODS:
Fiscal Year Ended January
Dollars In Millions 2001 2000 1999
Net sales $315.0 $206.8 $132.5
Operating income (loss) $ 4.7 $ 4.6 $ (5.0)
Operating margin 1.5% 2.2% (3.7)%
Percent increase in same store sales 3% 13% 9%
Stores in operation at end of period 81 51 35
HomeGoods’ same store sales increased 3% in fiscal 2001 versus a 13% increase in the prior year. HomeGoods’ operating income was
$4.7 million in fiscal 2001 versus $4.6 million in fiscal 2000 and an operating loss of $5.0 million in fiscal 1999. The growth in sales and
improvement in operating results in fiscal 2000 was largely due to the success of defining the right merchandise focus for these stores.
During the first half of fiscal 2001, HomeGoods continued to perform well, with new stores performing above plan. However, this increased
volume, combined with many new stores opening during the peak fall shopping period, placed pressure on HomeGoods’ distribution
capacity which disrupted the flow of inventory to our stores. This issue was a major factor in this division’s lower-than-planned perform-
ance for fiscal 2001. To deal with these issues, we are increasing our support from third party processors and we are adding additional
storage space adjacent to our Mansfield, Massachusetts distribution center. Further, we will be opening an 800,000 square foot facility
during fiscal 2002. We currently plan to open 30 HomeGoods stores in fiscal 2002.