TJX Takes a Hit: Fool by Numbers

On Feb. 21, retailer TJX (NYSE: TJX  ) released full-year earnings for the period ending Jan. 27.

• Sales were slightly below estimates, but earnings per share on a continuing operations basis were slightly ahead of estimates. Continuing operations excludes the impact of store closures and one-time charges; long-term, these charges to close A.J. Wright stores and reposition the brand should bear fruit.
• For the year, TJX had positive same-store sales at every concept.
• Gross margins and operating margins increased. Net margins did so as well, if looked at from a continuing operations perspective.
• Free cash flow increased by 23.4% as the company reined in the expansion of its less profitable concepts.
• TJX is a two-star stock in CAPS, our interactive stock database.

(Figures in thousands, except per-share data)

Income Statement Highlights

	FY 2007	FY 2006	Change
Sales	$17,404,637	$15,955,943	9.1%
Net Profit	$738,039	$690,423	6.9%
EPS	$1.55	$1.41	7.1%
Diluted Shares	480,045	491,500	(2.3%)

Get back to basics with a look at the income statement.

Margin Checkup

	FY 2007	FY 2006	Change*
Gross Margin	24.08%	23.45%	0.63
Operating Margin	7.25%	6.51%	0.74
Net Margin	4.24%	4.33%	(0.09)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	FY 2007	FY 2006	Change
Cash + ST Invest.	$856,700	$465,649	84.0%
Accounts Rec.	$274,300	$299,300	(8.4%)
Inventory	$2,582,000	$2,365,861	9.1%

Liabilities	FY 2007	FY 2006	Change
Accounts Payable	$1,372,400	$1,313,472	4.5%
Long-Term Debt	$785,600	$782,914	0.3%

Learn the ways of the balance sheet.

Cash Flow Highlights

	FY 2007	FY 2006	Change
Cash From Ops.	$1,195,000	$1,158,000	3.2%
Capital Expenditures	$378,000	$495,900	(23.8%)
Free Cash Flow	$817,000	$662,100	23.4%

Find out why Fools always follow the money.

Related Companies:

• Target (NYSE: TGT  )
• Ross Stores (Nasdaq: ROST  )
• JCPenney (NYSE: JCP  )

Related Foolishness:

• TJX: No Longer on Sale
• TJX Gains Strength
• TJX Continues to Perform: Fool by Numbers
• Relaxing Results From TJ Maxx

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Nathan Parmelee had no position in any of the companies mentioned. Fool rules are here.