TJ Maxx 2015 Annual Report Download - page 45

Our stock repurchase programs, which reduce our weighted average diluted shares outstanding, benefited
our earnings per share growth in fiscal 2016 by approximately 3%. We repurchased 26.5 million shares of our
stock at a cost of $1.8 billion in fiscal 2016, 27.7 million shares of our stock at a cost of $1.7 billion in fiscal 2015
and 27.0 million shares of our stock at a cost of $1.5 billion in fiscal 2014.
Segment information: We operate four main business segments. Our Marmaxx (T.J. Maxx, Marshalls and
tjmaxx.com) and HomeGoods segments both operate in the United States. Our TJX Canada segment operates
Winners, HomeSense and Marshalls in Canada, and our TJX International segment operates T.K. Maxx,
HomeSense and tkmaxx.com in Europe and Trade Secret in Australia. In the U.S., we also operate STP, an off-
price Internet retailer with a small number of stores. We currently consider all of STP, including its limited number
of stores, as part of our e-commerce businesses. The results of STP have been included in our Marmaxx
segment. The former TJX Europe segment has been renamed TJX International to reflect the acquisition of Trade
Secret in Australia. We evaluate the performance of our segments based on “segment profit or loss,” which we
define as pre-tax income or loss before general corporate expense, loss on early extinguishment of debt and
interest expense. “Segment profit or loss,” as we define the term, may not be comparable to similarly titled
measures used by other entities. The terms “segment margin” or “segment profit margin” are used to describe
segment profit or loss as a percentage of net sales. These measures of performance should not be considered
an alternative to net income or cash flows from operating activities as an indicator of our performance or as a
measure of liquidity.
Presented below is selected financial information related to our business segments:
U.S. Segments:
Marmaxx
Fiscal Year Ended
Dollars in millions
January 30,
2016
January 31,
2015
February 1,
2014
Net sales $19,948.2 $18,687.9 $17,929.6
Segment profit $ 2,858.8 $ 2,736.7 $ 2,612.7
Segment profit as a percentage of net sales 14.3% 14.6% 14.6%
Increase in same store sales 4% 1% 3%
Stores in operation at end of period
T.J. Maxx 1,156 1,119 1,079
Marshalls 1,007 975 942
Total Marmaxx 2,163 2,094 2,021
Selling square footage at end of period (in thousands)
T.J. Maxx 26,158 25,461 24,712
Marshalls 24,308 23,715 23,092
Total Marmaxx 50,466 49,176 47,804
At January 30, 2016, STP operated eight stores with selling square footage of 159,000. At January 31, 2015, STP operated six stores with
selling square footage of 122,000. At February 1, 2014, STP operated four stores with selling square footage of 83,000.
Net sales at Marmaxx increased 7% in fiscal 2016 as compared to fiscal 2015. The increase reflected a 3%
increase from new store sales and a 4% increase from same store sales. The same store sales increase of 4% in
fiscal 2016 is on top of a 1% increase in the prior year. Same store sales growth at Marmaxx for fiscal 2016 was
driven by an increase in customer traffic. Marmaxx same store sales also reflect an increase in units sold, which
was more than offset by a decrease in the average ticket. Our merchandise mix and pricing strategy throughout
fiscal 2016 resulted in the lower average ticket which we believe contributed to strong growth in customer traffic
and in units sold. Geographically, same store sales were strong throughout most of the country with the
Southeast region particularly strong. Home fashions outperformed apparel for fiscal 2016 with both categories
posting same store sales growth.
Same store sales for Marmaxx were up 1% in fiscal 2015, on top of a 3% increase in the prior year. Same
store sales growth at Marmaxx for fiscal 2015 was driven by an increase in the average transaction with a slight
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