TJ Maxx 2009 Annual Report Download - page 44

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HomeGoods:
Dollars in millions 2010 2009 2008
Fiscal Year Ended January
Net sales $1,794.4 $1,578.3 $1,480.4
Segment profit $ 137.5 $ 42.4 $ 76.2
Segment profit as a percentage of net sales 7.7% 2.7% 5.1%
Percent increase (decrease) in same store sales 9% (3)% 3%
Stores in operation at end of period 323 318 289
Selling square footage at end of period (in thousands) 6,354 6,248 5,569
HomeGoods’ net sales increased 14% in fiscal 2010 compared to fiscal 2009. Same store sales increased 9% in fiscal
2010, driven by significantly increased customer traffic, compared to a decrease of 3% in fiscal 2009. Segment margin of
7.7% was up significantly from 2.7% for fiscal 2009, due to increased merchandise margins driven by increased markon
and decreased markdowns, levering of expenses on the 9% same store sales and operational efficiencies. The merchandise
margin improvements were driven by managing this business with much lower inventory levels, which drove better off-
price buying and increased inventory turns. These improvements were partially offset by higher accruals for
performance-based incentive compensation as a result of operating performance well ahead of objectives.
HomeGoods’ net sales for fiscal 2009 increased 7% compared to fiscal 2008, and same store sales decreased 3%.
Segment margin of 2.7% for fiscal 2009 was down from 5.1% for fiscal 2008. Merchandise margins declined in fiscal
2009, primarily due to increased markdowns and operating costs delevered as a result of the decline in same store sales.
In fiscal 2011, we plan to add a net of 9 HomeGoods stores and increase selling square footage by 3%.
A.J. Wright:
Dollars in millions 2010 2009 2008
Fiscal Year Ended January
Net sales $779.8 $677.6 $632.7
Segment profit (loss) $ 12.6 $ 2.9 $ (1.8)
Segment profit (loss) as a percentage of net sales 1.6% 0.4% (0.3)%
Percent increase in same store sales 9% 4% 2%
Stores in operation at end of period 150 135 129
Selling square footage at end of period (in thousands) 3,012 2,680 2,576
A.J. Wright’s net sales increased 15% in fiscal 2010 as compared to fiscal 2009, and same store sales increased 9%.
A.J. Wright’s improvement in sales was driven by an increasingly better understanding of its customers’ tastes and
shopping habits, which has led to improved merchandising and marketing. Segment profit increased significantly to
$12.6 million in fiscal 2010, compared to segment profit of $2.9 million in fiscal 2009. The increase in segment margin
in fiscal 2010 was primarily due to improved merchandise margin. Like our other divisions, cost reduction initiatives and
the benefit of expense leverage on the same store sales increase was partially offset by higher accruals for performance-
based incentive compensation.
A.J. Wright’s net sales increased 7% for fiscal 2009 compared to fiscal 2008, and segment profit increased to
$2.9 million compared to a loss of $1.8 million in fiscal 2008. Same store sales increased 4% for fiscal 2009 and A.J.
Wright recorded its first segment profit in fiscal 2009 compared to losses in the prior years.
In fiscal 2011, we plan to add a net of 8 A.J. Wright stores and increase selling square footage by 6%.
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