TJ Maxx 2006 Annual Report Download - page 48

Discontinued operations:
Dollars In Millions 2007 2006 2005
Fiscal Year Ended January
Net sales $111.8 $102.0 $52.7
Segment profit (loss) (1.0) 1.0 (0.8)
Closed stores in operation during period 34 33 22
We currently plan to open 5 A. J. Wright stores in fiscal 2008. We continue to believe that A.J. Wright can be a
growth vehicle for TJX, with its very sizable target demographic.
Bob’s Stores:
Dollars In Millions 2007 2006 2005
Fiscal Year Ended January
Net sales $300.6 $288.5 $290.6
Segment profit (loss) (17.4) (28.0) (18.5)
Segment profit (loss) as a % of net sales (5.8)% (9.7)% (6.4)%
Percent increase in same store sales 2% N/A N/A
Stores in operation at end of period 36 35 32
Selling square footage at end of period (in thousands) 1,306 1,276 1,166
Bob’s Stores’ net sales increased 4% for fiscal 2007, compared to a slight decrease last year. Same store sales
increased 2% with our expanded women’s casual sportswear departments performing well. Bob’s Stores reduced its
segment losses for the fiscal year due to the sales growth combined with significant improvement in merchandise
margins. Merchandise margin increases were driven by improved markon, the result of better buying, which more than
offset increases in promotional markdowns as we significantly increased the level of promotions in this business.
Net sales for fiscal 2006 were less than the prior year, primarily due to a reduction in the number of promotional
advertising circulars. Although merchandise margin improved in fiscal 2006 (due to lower promotional markdowns) the
sales decline and incremental operating costs resulted in an increased segment loss for fiscal 2006 as compared to fiscal
2005. Segment loss in fiscal 2006 also includes severance costs of $0.8 million in connection with a reduction in the
work force at Bob’s Stores.
For fiscal 2008, we do not plan to open any new stores for this division as we continue to evaluate this business and
assess its potential for future growth.
General Corporate Expense:
Dollars In Millions 2007 2006 2005
Fiscal Year Ended January
General corporate expense $141.4 $134.1 $111.1
General corporate expense for segment reporting purposes are those costs not specifically related to the
operations of our business segments. This item includes the costs of the corporate office, including the compensation
and benefits (including stock based compensation) for senior corporate management; payroll and operating costs of the
corporate departments of accounting and budgeting, internal audit, compliance, treasury, investor relations, tax, risk
management, legal, human resources and systems; and the occupancy and office maintenance costs associated with the
corporate staff. In addition, general corporate expense includes the cost of benefits for existing retirees and non-
operating costs and other gains and losses not attributable to individual divisions. General corporate expense is
included in selling, general and administrative expenses in the consolidated statements of income.
Fiscal 2007 included pre-tax charges of approximately $5 million related to the Computer Intrusion, and
approximately $5 million related to the corporate division’s cost of the workforce reduction and other termination
benefits, while fiscal 2006 included costs of $9 million associated with executive resignation agreements and $6 million
of costs to exit the e- commerce business. The increase in other general corporate expenses in fiscal 2007 over fiscal 2006
also reflected increases in corporate payroll, corporate marketing and consulting costs, charitable contributions, and
European expansion costs.
The increase in general corporate expense in fiscal 2006 over fiscal 2005 is primarily due to the costs associated
with executive resignation agreements ($9 million) and of exiting the e-commerce business of ($6 million). Both of these
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