The TJX Companies, Inc. Reports Record 1998 Sales and Profits

Business Wire, March 3, 1999

FRAMINGHAM, Mass.--(BUSINESS WIRE)--March 3, 1999--The TJX Companies, Inc. (NYSE:TJX), the largest off-price retailer of apparel and home fashions in the U.S. and worldwide, today announced record sales and profits for the fiscal year ended January 30, 1999. For the 52-week fiscal year, diluted earnings per share from continuing operations were $1.29, a 47% increase over $.88 per share for the previous 53-week year. Prior year earnings per share data have been adjusted to reflect the June 1998 stock split. Income from continuing operations for fiscal 1999 reached $433 million versus $307 million in the prior year. Net sales for fiscal 1999 were $7.9 billion, up 9% on a comparable 52-week basis over the previous year.

For the fiscal 1999 13-week fourth quarter, diluted earnings per share from continuing operations were $.39, up 34% over last years 14-week fourth quarter earnings of $.29 per share. Income from continuing operations in the fourth quarter was $127 million versus $99 million last year. Net sales for the fiscal 1999 fourth quarter were $2.3 billion, up 9% on a comparable 13-week basis over last year.

Net income for fiscal 1999 was $424 million, after a $9 million charge for estimated liabilities associated with discontinued operations. This compares to net income for fiscal 1998 of $305 million, after an extraordinary charge of $2 million for the early retirement and replacement of a revolving credit line.

Bernard Cammarata, President and Chief Executive Officer of The TJX Companies, Inc. commented, "Nineteen ninety-eight was a banner year for The TJX Companies, in which we outpaced our objectives in every quarter. We achieved a 47% increase in earnings per share from continuing operations, on top of a 44% increase last year. We are especially gratified to have earned a 36% return on average shareholders' equity.

"T.J. Maxx and Marshalls both achieved outstanding results. Together, these divisions recorded a 5% comparable store sales increase and a 31% gain in operating income. In addition to our continued success at maintaining distinct consumer identities between T.J. Maxx and Marshalls, we did an excellent job of managing inventories. We remained very fluid in our inventory position, which enabled us to offer a constant flow of fresh and exciting merchandise throughout the year. In addition, we continued to see benefits from the combination of these divisions in purchasing power and expense savings. Regionally, there was broad-based strength, particularly on the West Coast, in the Southwest and in the Midwest.

"Winners Apparel, Ltd., in Canada had an excellent year, posting a 13% gain in comparable store sales and a 56% increase in operating income. These results were significantly ahead of our expectations. The Canadian consumer continued to embrace Winners' excellent values on apparel and an expanded selection of non-apparel categories. Also, inventory management at this division was very well executed.

"HomeGoods made further progress in 1998, posting a 9% comparable store sales increase. This business has made significant strides in its merchandise offerings and inventory management. We are encouraged with HomeGoods' prospects, both as a stand-alone business and as a component of our superstore concept, T.J. Maxx 'N More and Marshalls Mega-Store.

"T.K. Maxx continued to capture the attention of the U.K. consumer and achieved a 12% comparable store sales increase. Having realized profitability in the United Kingdom, we are confident in our ability to roll T.K. Maxx out throughout the U.K. and continue to believe in this business as a growth vehicle for TJX in Europe.

"A.J. Wright opened its doors during 1998, bringing off-price values to the moderate-income customer. At year-end, we had 6 stores in operation and expect to more than double its store base in 1999. We are very enthused about the possibility that this business can, in the long term, be a national chain and major division of our Company."

Cammarata concluded, "Our Company is very strong, with an excellent balance sheet and exciting growth opportunities. We are extremely well positioned as we enter 1999 to continue to deliver great quality, fashion and price to our customers and to increase shareholder value."

The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 604 T.J. Maxx, 475 Marshalls, 35 HomeGoods and 6 A.J. Wright stores in the United States. In Canada, the Company operates 87 Winners, and in Europe, 39 T.K. Maxx stores. TJX's press releases and financial information are also available on the internet via the Company's Home Page on the World Wide Web at http://www.tjx.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Certain statements contained in this release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: general economic conditions and consumer demand and consumer preferences and weather patterns in the U.S., Canada and Europe, particularly the United Kingdom; competitive factors, including continuing pressure from pricing and promotional activities of major competitors, impact of excess retail capacity and the availability of desirable store locations on suitable terms; the availability, selection and purchasing of attractive merchandise on favorable terms; import risks, including potential disruptions and duties, tariffs and quotas on imported merchandise, including economic and political problems in countries from which merchandise is imported; currency and exchange rate factors in the Company's foreign operations; risks in the development of new businesses and application of the Companys off-price strategies in foreign countries; acquisition and divestment activities; risks and uncertainties relating to the year 2000 issue; and other factors that may be described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.