Revenue during the quarter grew 5.64 percent to $9,467.65 million from $8,962.08 million in the previous year period. Gross margin for the quarter contracted 40 basis points over the previous year period to 28.32 percent. Total expenses were 88.35 percent of quarterly revenues, up from 87.99 percent for the same period last year. That has resulted in a contraction of 36 basis points in operating margin to 11.65 percent.

Operating income for the quarter was $1,103.28 million, compared with $1,076.76 million in the previous year period.

Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “The year 2016 was another terrific year for TJX on top of many great years! We were proud to mark our 40-year milestone as a company and surpass $33 billion in sales! Our consolidated comp sales increased a strong 5%, above our plan and over 5% growth last year, and earnings per share growth exceeded our expectations. We also delivered a 7% increase in net sales, over a 6% increase last year. We were particularly pleased that customer traffic was the primary driver of our comp increases at every major division, which tells us that our eclectic merchandise mix and amazing values continue to resonate with consumers across our geographies. It was also great to see a strong increase in our merchandise margin, over a very solid increase last year. The year 2016 also marked our 21st consecutive year of comp sales increases! We were also very pleased to end the year with above-plan fourth quarter results. Our 3% consolidated comp store sales increase and earnings per share of $1.03 both exceeded our expectations. Once again, comp sales were driven by customer traffic and our merchandise margin was up. Our fourth quarter and full year results give us great confidence that we are growing our customer base around the world and gaining market share across all our divisions!”

For the first-quarter 2018, The company expects diluted earnings per share to be in the range of $0.76 to $0.78.  

For fiscal year 2017,  the company expects diluted earnings per share to be in the range of $3.80 to $3.89 and its adjusted diluted earnings per share to be in the range of $3.69 to $3.78.

The company has spent $1,214.90 million cash to meet investing activities during the year as against cash outgo of $1,063 million in the last year.

The company has spent $1,561.90 million cash to carry out financing activities during the year as against cash outgo of $2,175.90 million in the last year period.

Cash and cash equivalents stood at $2,929.80 million as on Jan. 28, 2017, up 39.81 percent or $834.30 million from $2,095.50 million on Jan. 30, 2016.

Working capital increases sharply
The TJX Companies, Inc has recorded an increase in the working capital over the last year. It stood at $2,993.20 million as at Jan. 28, 2017, up 26.28 percent or $622.87 million from $2,370.33 million on Jan. 30, 2016. Current ratio was at 1.63 as on Jan. 28, 2017, up from 1.54 on Jan. 30, 2016.

Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 14 days for the last year period. Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 24 days for the quarter compared with 26 days for the previous year period. At the same time, days payable outstanding was almost stable at 15 days for the quarter, when compared with the previous year period.