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TJX
The ad slogan at discount retailer TJX’s T.J. Maxx chain has long been “get the max for the minimum.” The company, which operates more than 2,000 stores, followed its own advice last year, slashing 250 jobs at headquarters and cutting top executives’ pay by 10%. It renewed its emphasis on low-priced, chic apparel by hiring more buyers on the West Coast to make its merchandise more fashion-forward. CEO Carol Meyrowitz, promoted from president in January, also expanded jewelry counters and tested designer departments. The moves paid off as annual sales rose 9% last year, and net income gained 7%. The year was not an unvarnished success, however. TJX disclosed in January that hackers had stolen millions of credit-card numbers from its PCs over the past two years. Sales are strong, but the company could be sullied by lawsuits.
| Overall Grade | A- |
|
| Market Data | TJX | |
| Market Value (2/28/2007) |
$12.5 Billion |
|
| Profitability* | 47.6% | A |
| Sales Growth Rate** | 9.1% | C |
| 12-Month Sales | $17.4 Billion |
|
| 12-Month Net Income | $0.8 Billion |
|
| Total Return | Past 12 Months13.5% | Past 36 Months20.2% |
| Economic Sector | Consumer Discretionary | |
| Industry | Apparel Retail | |
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE
