TJ Maxx 2009 Annual Report Download - page 45

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International Segments:
TJX Canada:
U.S. Dollars in millions 2010 2009 2008
Fiscal Year Ended January
Net sales $2,167.9 $2,139.4 $2,040.8
Segment profit $ 255.0 $ 236.1 $ 235.1
Segment profit as a percentage of net sales 11.8% 11.0% 11.5%
Percent increase in same store sales 2% 3% 5%
Stores in operation at end of period
Winners 211 202 191
HomeSense 79 75 71
Total 290 277 262
Selling square footage at end of period (in thousands)
Winners 4,847 4,647 4,389
HomeSense 1,527 1,437 1,358
Total 6,374 6,084 5,747
Net sales for TJX Canada (which includes Winners and HomeSense) increased 1% in fiscal 2010 as compared to
fiscal 2009. Currency exchange translation reduced fiscal 2010 sales by approximately $62 million, or 3%, as compared
to fiscal 2009. Same store sales were up 2% in fiscal 2010 compared to an increase of 3% in fiscal 2009. Same store sales
of juniors, dresses, mens and footwear, as well as HomeSense on a standalone basis, were above the segment average for
fiscal 2010.
Segment profit for fiscal 2010 increased to $255 million compared to $236 million in fiscal 2009. The impact of
foreign currency translation decreased segment profit by $4 million, or 2%, in fiscal 2010 compared to fiscal 2009. The
mark-to-market adjustment on inventory related hedges did not have a material impact on segment profit in fiscal 2010
compared to fiscal 2009. Segment margin increased 0.8 percentage points to 11.8% in fiscal 2010, compared to 11.0%
in fiscal 2009, which was primarily due to an improvement in merchandise margins. Improvements in store payroll and
distribution costs as a percentage of net sales in fiscal 2010 due to operating efficiencies were offset by higher accruals for
performance-based incentive compensation as a result of operating performance well ahead of objectives.
Net sales for fiscal 2009 increased by 5% over fiscal 2008. Currency exchange translation reduced fiscal 2009 sales by
approximately $68 million. Same store sales increased 3% in fiscal 2009 compared to an increase of 5% in fiscal 2008.
Segment profit for fiscal 2009 increased slightly to $236 million compared to $235 million in fiscal 2008, while
segment margin decreased 0.5 percentage points to 11.0%. Currency exchange translation reduced segment profit by
$11 million for fiscal 2009, as compared to fiscal 2008. However, because currency translation impacts both sales and
expenses, it has little or no impact on segment margin. In addition, the mark-to-market adjustment of inventory related
hedges reduced segment profit in fiscal 2009 by $1 million, in contrast to a $5 million benefit in fiscal 2008, which
adversely impacted segment margin comparisons by 0.3 percentage points. Segment margin for fiscal 2009 reflected
increases in distribution center costs and store payroll costs as a percentage of net sales, partially offset by an increase in
merchandise margins.
We expect to add a net of 6 stores in Canada in fiscal 2011 and plan to increase selling square footage by 2%.
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