TJ Maxx 2015 Annual Report Download - page 4

TO OUR FELLOW SHAREHOLDERS:
THE YEAR 2015 was another successful
year for our Company. Our off-price values
continued to resonate with our new and
already loyal customers across all of our
geographies. We achieved above-plan
results and brought our values to more
consumers around the world as we
expanded our global reach to three new
countries. We were delighted that customer
traffic was the primary driver of our comparable
store sales increases, both on a consolidated basis and
at each of our four large divisions. Consumers are loving
our stores and shopping them more frequently, and we
are convinced that we are gaining market share in an
ever-competitive retail environment. Marmaxx, our
largest division, posted very strong results while bringing
T.J. Maxx and Marshalls to even more U.S. shoppers.
HomeGoods achieved outstanding results as we intro-
duced this chain’s eclectic mix of home fashions to more
U.S. regions. TJX Canada delivered remarkable top-line
performance and furthered our penetration of that country.
TJX International had a very solid year, expanding our
presence in Europe and entering Australia with the
acquisition of Trade Secret. We are excited about our
e-commerce businesses in the U.S. and U.K., which
we view as another attractive avenue to gain more
customers, both online and in our stores. We were also
happy to open additional Sierra Trading Post stores
as we are always testing new ideas and initiatives.
In 2015, we surpassed the $30-billion milestone, with
net sales reaching $30.9 billion. This was up 6%, or
an increase of almost $2 billion, over 2014 and con-
solidated comparable store sales grew a strong 5%.
Net income rose to $2.3 billion and diluted earnings
per share were $3.33, which, on an adjusted basis,
was a 5% increase over the prior year’s strong
growth.1 While our more modest EPS increase in
2015 reflected the significant negative impact of
foreign currency and our wage initiative, which is part
of our strategy to continue attracting and retaining
the best talent and remaining compet-
itive, we were pleased to exceed our
expectations. We are very proud
that 2015 marked the 20th con-
secutive year of consolidated
comparable store sales
increases. In our history as
a Company, we have had an
annual comparable store sales
decline in only one year. Further,
merchandise margins increased while
we offered amazing values to our customers. Overall,
we grew square footage by 5%, adding a net total of
219 stores, to end the fiscal year with 3,614 stores.
Notably, we closed only one store in a volatile retail
environment in 2015. We are also extremely proud to
employ approximately 216,000 Associates worldwide
as of the end of the year.
KEY REASONS FOR OUR CONFIDENCE
We are convinced that tremendous opportunity remains
to bring our values to more consumers in the U.S. and
internationally. As we continue to pursue our goals for
global growth and gaining market share profitably, our key
strengths give us great confidence. TJX is one of
the most flexible retailers in the world. We believe
that the same elements of our business that allow us to
be extremely flexible and differentiate us from other
major retailers are important advantages in our continuing
successful growth.
At the core is our commitment to value, our mission
since the beginning. Throughout our history, our formula
of delivering value through a combination of brand, fashion,
price, and quality has resonated with consumers across
all of our geographies, in many retail and economic
environments. We are confident that our focus on delivering
amazing value to consumers will continue to attract new
shoppers and keep our already loyal customers coming
back to our stores!
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