TJX to cut costs after profit falls 17%
Framingham discounter TJX Cos. said yesterday it is cutting $150 million in costs from its budget, including eliminating merit pay raises, offering a voluntary retirement program, and reducing spending on marketing. TJX, which runs the T.J. Maxx, Marshalls, HomeGoods, and other chains, also plans to extend a hiring freeze it implemented last September, tighten travel expenses, and more efficiently manage payroll in stores.
"We are maintaining our flexibility and keeping our options open to take additional actions should the environment force us," TJX chief executive Carol Meyrowitz said yesterday in a conference call.
TJX reported fiscal fourth-quarter net income dropped 17 percent to $250.7 million, or 58 cents a share. A year ago, profit was $301.1 million or 68 cents per share.
Adjusted earnings from continuing operations were 55 cents per share, beating analysts' average expectations of 51 cents, according to a Thomson Reuters poll.
The company plans to open 13 AJ Wright stores in 2009 and expand new store concepts, including Marshalls Shoe Megashop and StyleSense.
TJX operates more than 2,000 stores in the United States.