TJX Earnings Plunge 29%

FRAMINGHAM, MA-Discount-retailer TJX Cos. grew by 85 stores in fiscal 2006, but charges associated with the closing of 34 A.J. Wright Stores drove down fourth quarter performance, sending earnings for the quarter plummeting by 29%, the company said recently.

Earnings for the quarter ended Jan. 27 totaled 205.5 million, or 43 cents per share, down from $288.7 million, or 60 cents per share, earned during the fourth quarter a year earlier. Overall sales were up 9% to $5.1 billion from $4.68 billion a year earlier. Sales from stores open at least one year rose 5% overall.

Carol Meyrowitz, president and CEO, said in a conference call that the closing of 34 underperforming A.J. Wright stores will allow the company to refocus on the craft store’s demographics to bring that division to the break-even point by 2008. A.J. Wright lost $1 million last year but should show a positive cash flow soon, she said.