TJ Maxx 2006 Annual Report Download - page 26

they do not relate strictly to historical or current facts. We have generally identified such statements by using words such
as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will,” “target,” “forecast” and similar
expressions in connection with any discussion of future operating or financial performance. All statements that
address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. In particular, these include statements relating to future actions, future performance or results of current
and anticipated sales, expenses, interest rates, foreign exchange rates, the outcome of contingencies, such as legal
proceedings, and financial results.
We cannot guarantee that any forward-looking statement will be realized. Achievement of future results is subject to
risks, uncertainties and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize,
or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those
anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new infor-
mation, future events or otherwise. You are advised, however, to consult any further disclosures we make on related
subjects in our Form 10-Q and 8-K reports to the SEC. The risks that follow, individually or in the aggregate, are those
that we think could cause our actual results to differ materially from those stated or implied in forward-looking
statements. You should understand that it is not possible to predict or identify all such factors. Consequently, you
should not consider the following to be a complete discussion of all potential risks or uncertainties.
Our revenue growth could be adversely affected if we do not continue to expand our operations successfully.
We have steadily expanded the number of chains and stores we operate and our selling square footage. Our revenue
growth is dependent upon our ability to continue to expand successfully through new store openings as well as our ability
to increase same store sales. Successful store growth requires selection of store locations in appropriate geographies,
availability of attractive stores or store sites in such locations and negotiation of acceptable terms. Competition for
desirable sites and increases in real estate, construction and development costs could limit our growth opportunities. Even
if we succeed in opening new stores, these new stores may not achieve the same sales or profit levels as our existing stores.
Further, expansion places demands upon us to manage rapid growth, and we may not do so successfully.
Our quarterly operating results can be subject to significant fluctuations and may fall short of either a prior quarter or
investors’ expectations.
Our operating results have fluctuated from quarter to quarter in the past, and we expect that they will continue to
do so in the future. Our earnings may not continue to grow at rates similar to the growth rates achieved in recent years
and may fall short of either a prior quarter or investors’ expectations. Factors that could cause these quarterly
fluctuations include some factors that are within our control such as the execution of our off-price buying; selection,
pricing, flow and mix of merchandise; and inventory management including markon and markdowns; and some factors
that are not within our control including actions of competitors; weather conditions; economic conditions and
consumer confidence; and seasonality. In addition, if we do not repurchase, or are unable to repurchase, the number
of shares we contemplate pursuant to our stock repurchase program, our earnings per share may be adversely affected.
Most of our operating expenses, such as rent expense and associate salaries, do not vary directly with the amount of sales
and are difficult to adjust in the short term. As a result, if sales in a particular quarter are below expectations for that
quarter, we may not proportionately reduce operating expenses for that quarter, and therefore such a sales shortfall
would have a disproportionate effect on our net income for the quarter. We maintain a forecasting process that seeks to
project sales and align expenses. If management fails to correctly forecast changes or appropriately adjust the business
plan in light of results, our financial performance could be adversely affected.
We may have difficulty extending our off-price model in new product lines, chains and geographic regions.
We have expanded our original off-price model into different product lines, chains, geographic areas and
countries. Our growth is dependent upon our ability to successfully execute our off-price retail apparel and home
fashions concepts in new markets and geographic regions. If we are unable to successfully execute our concepts in these
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