TJX sells its Bob's Stores chain

Company says deal will let it sharpen focus

CHICAGO - TJX Cos. is selling the Bob's Stores chain to a pair of private equity firms as it tries to better focus its strategies.

Terms of the sale to Versa Capital Management and Crystal Capital were not disclosed.

But the Framingham, Mass.-based discount fashion retailer said the deal, unveiled yesterday, will result in a charge of $15 million, or 3 cents per share, in the third quarter.

"While we continue to believe Bob's Stores has great potential and an excellent organization, our decision to sell the business reflects our vision to grow TJX as a global, off-price company," said TJX's chief executive, Carol Meyrowitz. "We believe that focusing on the significant opportunities to expand the domestic and international presence of our core, off-price concepts is the right strategy for us at this time."

TJX acquired Bob's in 2003. The chain, with 34 stores in the Northeast, is its smallest unit. Last year, Bob's Stores, which sells casual clothing and footwear, had sales of about $310 million - about 2 percent of the company's $18.6 billion in total sales.

Same-store sales - an important retail metric that measures sales at stores open at least a year - grew about 5 percent during the last fiscal year.

Separately Tuesday, TJX, which operates T.J. Maxx, Marshalls, and other discount retailers, updated its full-year guidance because of the sale.

Now the company expects its fiscal 2009 earnings per share from continuing operations to be between $2.30 and $2.35.

Excluding one-time charges, the company's adjusted earnings per share from continuing operations is forecast to fall between $2.19 and $2.24.

Analysts surveyed by Thomson Reuters expect $2.30 per share on revenue of $20.2 billion. Those estimates typically exclude one-time charges.

This month, the company raised its third-quarter and full-year outlooks, saying more shoppers were turning to discount retailers as the economy sours.

TJX shares fell 82 cents, or 2.3 percent, to $34.77.