TJ Maxx 2015 Annual Report Download - page 42

The following is a discussion of our consolidated operating results, followed by a discussion of our segment
operating results.
Net sales: Consolidated net sales for fiscal 2016 totaled $30.9 billion, a 6% increase over $29.1 billion in
fiscal 2015. The increase reflected a 4% increase from new stores and a 5% increase from same store sales,
offset by a 3% negative impact from foreign currency exchange rates. Net sales from our e-commerce
businesses amount to approximately 1% of total sales and had an immaterial impact on fiscal 2016 sales
growth. Consolidated net sales for fiscal 2015 totaled $29.1 billion, a 6% increase over $27.4 billion in fiscal
2014. The increase reflected a 4% increase from new stores and a 2% increase from same store sales. Foreign
currency exchange rates and e-commerce sales had an immaterial impact on fiscal 2015 net sales growth.
Same store sales increases in the U.S. for fiscal 2016 were due to an increase in customer traffic. We also
had a strong increase in units sold which was offset by a reduction in the average ticket. In fiscal 2016, home
fashions performed better than apparel but both recorded strong same store sales growth. Geographically, in
the U.S., sales were strong in virtually all regions, with the Southeast reporting the highest same store sales
growth. In Canada, same store sales increases were well above the consolidated average while TJX International
was slightly below the consolidated average.
Same store sales increases in the U.S. for fiscal 2015 were driven by increases in the value of the average
transaction and customer traffic. In fiscal 2015, within apparel, sales from jewelry and accessories and
activewear performed particularly well, as did home fashions. Geographically, in the U.S., sales were strongest in
the Southeast and Southwest. Same store sales increases at TJX International and TJX Canada were above the
consolidated average.
We define same store sales to be sales of those stores that have been in operation for all or a portion of two
consecutive fiscal years, or in other words, stores that are starting their third fiscal year of operation. The sales of
Sierra Trading Post (including stores), tjmaxx.com and tkmaxx.com (our e-commerce businesses) are not
included in same store sales. We classify a store as a new store until it meets the same store sales criteria. The
newly acquired Trade Secret stores will be included in same store sales when they meet the above definition. We
determine which stores are included in the same store sales calculation at the beginning of a fiscal year and the
classification remains constant throughout that year, unless a store is closed. We calculate same store sales
results by comparing the current and prior year weekly periods that are most closely aligned. Relocated stores
and stores that have increased in size are generally classified in the same way as the original store, and we
believe that the impact of these stores on the consolidated same store percentage is immaterial. Same store
sales of our foreign segments are calculated on a constant currency basis, meaning we translate the current
year’s same store sales of our foreign segments at the same exchange rates used in the prior year. This removes
the effect of changes in currency exchange rates, which we believe is a more accurate measure of segment
operating performance. We define customer traffic to be the number of transactions in stores included in the
same store sales calculation and define average ticket to be the average retail price of the units sold. We define
average transaction or average basket to be the average dollar value of transactions included in the same store
sales calculation.
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