TJ Maxx 2014 Annual Report Download - page 45

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Segment margin in fiscal 2014 was 14.6%, flat compared to fiscal 2013. The 53rd week increased the fiscal
2013 segment margin by approximately 0.2 percentage points. Excluding the extra week in fiscal 2013, the
improvement in segment margin was primarily due to an increase in merchandise margin for fiscal 2014, despite
higher markdowns taken in the fourth quarter. Fiscal 2014 segment margin was reduced by 0.2 percentage
points due to the impact of our e-commerce businesses but this decline in margin was largely offset by the
benefit of some expense leverage and reduced incentive compensation costs as compared to the prior year.
In fiscal 2016, we expect to open approximately 70 new Marmaxx stores (net of closings) and increase
selling square footage by approximately 3%.
HomeGoods
Fiscal Year Ended
Dollars in millions
January 31,
2015
February 1,
2014
February 2,
2013
Net sales $3,414.4 $2,993.7 $2,657.1
Segment profit $ 463.2 $ 386.5 $ 324.6
Segment profit as a percentage of net sales 13.6% 12.9% 12.2%
Increase in same store sales 7% 7% 7%
Stores in operation at end of period 487 450 415
Selling square footage at end of period (in thousands) 9,537 8,865 8,210
HomeGoods’ net sales increased 14% in fiscal 2015 compared to fiscal 2014, on top of a 13% increase in
fiscal 2014 when compared to fiscal 2013. The increase in fiscal 2015 reflected a 7% increase from new stores
and a 7% increase from same store sales. The same store sales increase of 7% in fiscal 2015 is on top of a
same store sales increase of 7% in fiscal 2014. Same store sales growth in both fiscal 2015 and 2014 was driven
by an increase in the value of the average transaction along with an increase in customer traffic.
Segment profit margin for fiscal 2015 was 13.6%, up from 12.9% for fiscal 2014. The increase was driven by
expense leverage on the 7% same store sales increase, (primarily buying and occupancy costs, and
administrative costs,) as well as an increase in merchandise margins. Segment profit margin for fiscal 2014 was
12.9%, up from 12.2% for fiscal 2013. The increase in fiscal 2014 was driven by expense leverage on the 7%
same store sales increase, particularly buying and occupancy costs. The 53rd week increased the fiscal 2013
segment margin by approximately 0.2 percentage points.
In fiscal 2016, we plan a net increase of 40 HomeGoods stores and plan to increase selling square footage
by approximately 8%.
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