PAGE 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
/X/ Quarterly Report Under Section 13 and 15(d)
of the Securities Exchange Act of 1934
or
/ / Transition Report Pursuant to Section 13 and 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended October 25, 1997
Commission file number 1-4908
The TJX Companies, Inc.
(Exact name of registrant as specified in its charter)
DELAWARE 04-2207613
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
770 Cochituate Road
Framingham, Massachusetts 01701
(Address of principal executive offices) (Zip Code)
(508)390-1000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X . No .
The number of shares of Registrant's Common Stock outstanding as of
November 22, 1997: 161,389,824
PAGE 2
PART I FINANCIAL INFORMATION
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF INCOME
(UNAUDITED)
DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS
Thirteen Weeks Ended
October 25, October 26,
1997 1996
Net sales $1,887,698 $1,722,429
Cost of sales, including buying and
occupancy costs 1,414,336 1,305,271
Selling, general and administrative expenses 287,205 266,918
Interest expense, net 3,654 10,344
Income from continuing operations before
income taxes and extraordinary item 182,503 139,896
Provision for income taxes 75,561 58,306
Income from continuing operations before
extraordinary item 106,942 81,590
Income from discontinued operations,
net of income taxes - 8,805
Income before extraordinary item 106,942 90,395
Extraordinary (charge), net of income taxes (1,777) (2,885)
Net income 105,165 87,510
Preferred stock dividends 1,305 2,308
Net income attributable to common
shareholders $ 103,860 $ 85,202
Primary and fully diluted earnings per
common share:
Income from continuing operations $ .61 $ .45
Income before extraordinary item $ .61 $ .50
Net income $ .60 $ .48
Cash dividends per common share $ .05 $ .035
The accompanying notes are an integral part of the financial statements.
PAGE 3
PART I FINANCIAL INFORMATION
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF INCOME
(UNAUDITED)
DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS
Thirty-Nine Weeks Ended
October 25, October 26,
1997 1996
Net sales $5,146,220 $4,742,935
Cost of sales, including buying and
occupancy costs 3,940,216 3,694,820
Selling, general and administrative expenses 844,731 775,983
Interest expense, net 6,054 35,674
Income from continuing operations before
income taxes and extraordinary item 355,219 236,458
Provision for income taxes 147,238 98,154
Income from continuing operations before
extraordinary item 207,981 138,304
Income from discontinued operations, net
of income taxes - 18,231
Income before extraordinary item 207,981 156,535
Extraordinary (charge), net of income taxes (1,777) (2,885)
Net income 206,204 153,650
Preferred stock dividends 6,382 11,096
Net income attributable to common
shareholders $ 199,822 $ 142,554
Primary and fully diluted earnings per
common share:
Income from continuing operations $1.16 $ .76
Income before extraordinary item $1.16 $ .86
Net income $1.15 $ .85
Cash dividends per common share $ .15 $ .105
The accompanying notes are an integral part of the financial statements.
PAGE 4
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
BALANCE SHEETS
(UNAUDITED)
IN THOUSANDS
October 25, January 25, October 26,
1997 1997 1996
ASSETS
Current assets:
Cash and cash equivalents $ 143,602 $ 474,732 $ 236,035
Accounts receivable 110,117 57,275 90,695
Merchandise inventories 1,459,607 1,059,505 1,335,099
Prepaid expenses 16,859 16,379 19,054
Net current assets of
discontinued operations - 54,451 116,009
Total current assets 1,730,185 1,662,342 1,796,892
Property, at cost:
Land and buildings 104,098 103,067 110,496
Leasehold costs and improvements 484,057 428,836 448,636
Furniture, fixtures and equipment 599,494 527,710 585,684
1,187,649 1,059,613 1,144,816
Less accumulated depreciation
and amortization 494,847 419,129 420,506
692,802 640,484 724,310
Other assets 34,203 42,259 36,432
Goodwill and tradename,
net of amortization 211,568 216,127 231,335
Net noncurrent assets of
discontinued operations - - 48,627
TOTAL ASSETS $2,668,758 $2,561,212 $2,837,596
LIABILITIES
Current liabilities:
Current installments of
long-term debt $ 2,199 $ 27,140 $ 94,708
Accounts payable 646,906 533,945 616,200
Accrued expenses and other
current liabilities 576,280 577,046 624,850
Federal and state income taxes
payable 57,107 44,165 28,930
Total current liabilities 1,282,492 1,182,296 1,364,688
Long-term debt exclusive of
current installments:
Real estate mortgages 21,827 22,391 22,926
Equipment notes 1,456 2,135 2,556
General corporate debt 219,894 219,884 514,880
Deferred income taxes 14,035 7,320 25,885
SHAREHOLDERS' EQUITYPreferred stock at face value,
authorized 5,000,000 shares, par
value $1, issued and outstanding
cumulative convertible stock of:
250,000 shares of 1.81% Series D - - 25,000
727,700 shares of 7% Series E 72,770 150,000 150,000
Common stock, par value $1, authorized
300,000,000 shares, issued and
outstanding 161,751,535; 79,576,438
and 77,724,715 shares 161,752 79,576 77,725
Additional paid-in capital 254,588 429,017 386,600
Retained earnings 639,944 468,593 267,336
Total shareholders' equity 1,129,054 1,127,186 906,661
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $2,668,758 $2,561,212 $2,837,596
The accompanying notes are an integral part of the financial statements.
PAGE 5
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(UNAUDITED)
IN THOUSANDS
Thirty-Nine Weeks Ended
October 25, October 26,
1997 1996
Cash flows from operating activities:
Net income $ 206,204 $ 153,650
Adjustments to reconcile net income
to net cash provided by operating activities:
(Income) from discontinued operations - (18,231)
Extraordinary charge 1,777 2,885
Depreciation and amortization 92,463 94,228
Gain on sale of other assets (5,992) -
Property disposals 7,181 6,291
Other 671 (3,282)
Changes in assets and liabilities:
(Increase) in accounts receivable (52,842) (35,551)
(Increase) in merchandise inventories (400,102) (76,611)
(Increase) in prepaid expenses (480) (2,648)
Increase in accounts payable 112,961 179,566
Increase in accrued expenses and
other current liabilities 32,424 10,794
Increase in income taxes payable 14,126 1,779
Increase in deferred income taxes 4,095 13,221
Net cash provided by operating activities 12,486 326,091
Cash flows from investing activities:
Property additions (145,065) (83,025)
Proceeds from sale of Brylane, Inc. common stock 15,697 -
Contingent payment for acquisition of Marshalls - (49,327)
Proceeds adjustment for sale of Chadwick's (33,190) -
Net cash (used in) investing activities (162,558) (132,352)
Cash flows from financing activities:
Principal payments on long-term debt (26,184) (45,493)
Prepayment of long-term debt - (92,459)
Stock repurchase (182,413) -
Proceeds from sale and issuance of common
stock net 7,441 15,644
Cash dividends (34,353) (26,803)
Net cash (used in) financing activities (235,509) (149,111)
Net cash provided by (used in) continuing operations (385,581) 44,628
Net cash provided by (used in) discontinued
operations 54,451 (17,819)
Net increase (decrease) in cash and cash
equivalents (331,130) 26,809
Cash and cash equivalents at beginning of year 474,732 209,226
Cash and cash equivalents at end of period $ 143,602 $ 236,035
The accompanying notes are an integral part of the financial statements.
PAGE 6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
Thirteen Weeks (Third Quarter) and Thirty-Nine Weeks Ended October 25, 1997
Versus Thirteen Weeks and Thirty-Nine Weeks Ended October 26, 1996
Effective December 7, 1996, the Company sold its Chadwick's of Boston mail
order operation to Brylane, L.P. This transaction was accounted for in the
Company's fourth quarter for the fiscal year ended January 25, 1997. The
operating results for Chadwick's for all periods prior to the sale have
been presented as discontinued operations.
Net sales from continuing operations for the third quarter were $1,887.7
million, up 10% from $1,722.4 million last year. For the nine months, net
sales from continuing operations were $5,146.2 million, up 9% from $4,742.9
million for the same period last year. The increase in sales is primarily
attributable to an increase in same store sales. Same store sales for the
third quarter increased by 6% at T.J. Maxx, 8% at Marshalls, 14% at
Winners, 20% at HomeGoods and 5% at T.K. Maxx. Same store sales for the
nine months increased by 5% at T.J. Maxx, 8% at Marshalls, 16% at Winners,
15% at HomeGoods and 13% at T.K. Maxx.
Income from continuing operations for the third quarter was $106.9 million,
or $.61 per common share versus $81.6 million, or $.45 per common share.
For the nine months, income from continuing operations was $208.0 million,
or $1.16 per common share versus $138.3 million, or $.76 per common share.
The periods ending October 25, 1997 include an after-tax gain of $3.6
million, or $.02 per common share, from the sale of Brylane Inc. common
stock. After a $1.8 million extraordinary charge for the early retirement
of the Company's revolving credit agreement, net income for the third
quarter and nine months ended October 25, 1997 was $105.2 million, or $.60
per common share, and $206.2 million, or $1.15 per common share,
respectively. For the periods ended October 26, 1996, the Company recorded
net income of $87.5 million, or $.48 per common share, and $153.7 million,
or $.85 per common share, for the third quarter and nine months,
respectively, which includes an extraordinary charge and the results of its
discontinued operation Chadwick's of Boston.
The following table sets forth operating results expressed as a percentage
of net sales (continuing operations):
Percentage of Net Sales
13 Weeks Ended 39 Weeks Ended
10/25/97 10/26/96 10/25/97 10/26/96
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales, including
buying and occupancy costs 74.9 75.8 76.6 77.9
Selling, general and
administrative expenses 15.2 15.5 16.4 16.4
Interest expense, net .2 .6 .1 .7
Income from continuing
operations before income
taxes and extraordinary item 9.7% 8.1% 6.9% 5.0%
PAGE 7
Cost of sales, including buying and occupancy costs as a percent of net
sales, decreased in both periods from the prior year. This improvement
reflects the benefits of the Marshalls acquisition. Enhanced purchasing
power has allowed the Company to pass on better values to its customers and
has improved sales and merchandise margins. The improvement in the quarter
is less significant as the prior year results also reflect the improved
trends associated with the Marshalls acquisition.
Selling, general and administrative expenses, as a percentage of net sales,
decreased for the third quarter and was flat for the nine months. For the
third quarter and nine months, selling, general and administrative expenses
include a $6 million pre-tax gain from the sale of Brylane, Inc. common
stock obtained by converting approximately 50% of the Brylane note into
common stock. In addition, for the nine months ended October 1997,
selling, general and administrative expenses include the following: (i) a
charge of $10 million in connection with a deferred shares award granted
under a new five year employment contract with the Company's Chief
Executive Officer, (ii) an additional charge of $3.5 million recorded as
compensation expense associated with the increase in market value
associated with the deferred shares award described above and (iii) a
charge of $5.0 million for the estimated cost of closing certain HomeGoods
stores. These charges more than offset additional expense savings the
Company had realized through the consolidation of certain administrative
functions as a result of the Marshalls acquisition. Selling, general and
administrative expenses, as a percent of net sales, excluding the above
items, would have been 15.5% for the quarters ended October 1997 and
October 1996 and 16.2% for the nine months ended October 1997 versus 16.4%
last year.
Interest expense, net, decreased in the third quarter and nine months. The
decrease is the result of the Company's prepayments on its 9 1/2% sinking
fund debentures during the third quarter of fiscal 1997 and the $375
million term loan, incurred for the acquisition of Marshalls, during the
fourth quarter of fiscal 1997. In addition, as a result of the Company's
strong cash position, interest expense, net, for the nine months, reflects
interest income of $14.2 million this year versus $8.2 million for the same
period last year.
PAGE 8
The following table sets forth the operating results of the Company's major
business segments: (unaudited)
(In Thousands)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 25, October 26, October 25, October 26,
1997 1996 1997 1996
Net sales:
Off-price family
apparel stores $1,864,480 $1,702,818 $5,081,271 $4,683,859
Off-price home fashion
stores 23,218 19,611 64,949 59,076
$1,887,698 $1,722,429 $5,146,220 $4,742,935
Operating income (loss):
Off-price family
apparel stores $ 193,608 $ 161,830 $ 410,180 $ 311,084
Off-price home fashion
stores (1,917) (2,908) (8,456) (8,534)
191,691 158,922 401,724 302,550
General corporate expense 4,880 8,029 38,490 28,458
Goodwill amortization 654 653 1,961 1,960
Interest expense, net 3,654 10,344 6,054 35,674
Income from continuing oper-
ations before income taxes
and extraordinary item $ 182,503 $ 139,896 $ 355,219 $ 236,458
The off-price family apparel stores segment comprised of T.J. Maxx,
Marshalls, Winners and T.K. Maxx significantly increased its operating income
for both the third quarter and nine months. This segment's increased
operating results reflect the combined buying power of T.J. Maxx and
Marshalls, as well as the expense savings resulting from the consolidation of
Marshalls. Winners had significant increases in operating income in both
periods. General corporate expense for the quarter and nine months was
impacted by the gain associated with the sale of Brylane stock. The nine
months is also impacted by a charge related to the deferred shares award
granted in April 1997 to the Company's Chief Executive Officer as well as the
reserves for certain HomeGoods store closings.
Stores in operation at the end of the period are as follows:
October 25, 1997 October 26, 1996
T.J. Maxx 582 589
Marshalls 460 463
Winners 75 63
HomeGoods 24 23
T.K. Maxx 29 18
PAGE 9
Financial Condition
Cash flows from operating activities for the nine months reflect increases
in inventories and accounts payable that are primarily due to normal
seasonal requirements. Comparisons to fiscal 1997's nine months are
impacted by the Company's movement to a leaner inventory position during
fiscal 1997.
On June 3, 1997, the Company's shareholders approved an increase in the
number of authorized shares of common stock making the two-for-one stock
split effective in the form of a 100% stock dividend. The split was
distributed on June 26, 1997 to shareholders of record on June 11, 1997 and
resulted in the issuance of 79.8 million shares of common stock along with
a corresponding decrease of $79.8 million in additional paid-in capital.
All historical earnings per share amounts have been restated to reflect the
two-for-one stock split.
On June 25, 1997, the Company announced a program to purchase up to an
aggregate of $250 million of the Company's common stock and Series E
preferred stock to be accomplished through open market purchases or other
transactions. Through October 25, 1997, the Company has purchased
6,496,045 shares of common stock and 2,500 shares of Series E preferred
stock at a cost of $182.4 million. The Company is no longer seeking to
purchase its Series E preferred stock. The average price of the common
shares repurchased was $27.97 per share.
Through October 25, 1997, shareholders converted 769,800 shares of Series E
preferred stock into 8,310,927 shares of common stock. The Company paid
$3.8 million to induce conversion of the preferred shares.
In September 1997, the Company replaced its $500 million revolving credit
agreement with a new five year $500 million revolving credit facility. The
new agreement provides for reduced commitment fees on the unused portion of
the line as well as lower borrowing costs. The Company recorded an
extraordinary charge of $1.8 million associated with the write off of
deferred financing costs of the former agreement.
PAGE 10
The following table sets forth the shareholders' equity transactions for
the nine months ended October 25, 1997: (unaudited)
(In Millions)
Prfd Common
Stock Stock Add'l
Face Par Paid-In Retained
Value Value Capital Earnings Total
Balance, January 25, 1997 $150.0 $79.6 $429.0 $468.6 $1,127.2
Net income - - - 206.2 206.2
Cash dividends:
Preferred - - - (6.4) (6.4)
Common - - - (24.2) (24.2)
Conversion of cumulative
Series E Preferred
stock into common (76.9) 8.3 68.6 (3.8) (3.8)
Stock repurchase
Preferred (.3) - - (.5) (.8)
Common - (6.5) (175.1) - (181.6)
Stock split - 79.8 (79.8) - -
Issuance of common
stock under stock
incentive plan - .6 7.9 - 8.5
Other - - 4.0 - 4.0
Balance, October 25, 1997 $ 72.8 $161.8 $254.6 $639.9 $1,129.1
During the fourth quarter of fiscal 1997, the Company completed the sale of
its Chadwick's of Boston catalog division to Brylane, L.P. Proceeds of
approximately $300 million included cash, a 10-year $20 million Convertible
Subordinated Note at 6% interest and Chadwick's consumer credit card
receivables. During the second quarter of fiscal 1998, the Company paid
Brylane $28.8 million as an estimated adjustment of the cash proceeds based
on the closing balance sheet of Chadwick's as of December 7, 1996 as
prepared by the Company. During the third quarter ended October 1997, the
Company paid Brylane $4.4 million upon agreement of the final closing
balance sheet of Chadwick's as of December 7, 1996. The results of
Chadwick's for all periods prior to December 7, 1996 have been reclassified
to discontinued operations. The cash provided by discontinued operations
represents the collection of the remaining balance of the Chadwick's
consumer credit card receivables outstanding as of January 1997.
PAGE 11
During the quarter ended October 1997, the Company converted a portion of
the Brylane note into 352,908 shares of Brylane, Inc., common stock which
it sold for $15.7 million. This sale resulted in an after-tax gain of $3.6
million, or $.02 per share.
The Company is in the process of converting all necessary systems to be
Year 2000 compliant. The Company expects to spend an aggregate of
approximately $10 million on conversion costs, primarily in fiscal 1998 and
1999.
PAGE 12
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The results for the nine months are not necessarily indicative of
results for the full fiscal year, because the Company's business, in
common with the businesses of retailers generally, is subject to
seasonal influences, with higher levels of sales and income generally
realized in the second half of the year.
2. The preceding data are unaudited and reflect all normal recurring
adjustments, the use of retail statistics, and accruals and deferrals
among periods required to match costs properly with the related revenue
or activity, considered necessary by the Company for a fair presentation
of its financial statements for the periods reported, all in accordance
with generally accepted accounting principles and practices consistently
applied.
3. The Company's cash payments for interest expense and income taxes are as
follows: (in thousands)
Thirty-Nine Weeks Ended
October 25, October 26,
1997 1996
Cash paid for:
Interest expense $ 16,791 $35,284
Income taxes 129,171 90,089
4. In October 1988, the Company completed the sale of its former Zayre
stores division to Ames Department Stores, Inc. ("Ames"). In April
1990, Ames filed for protection under Chapter 11 of the Federal
Bankruptcy Code and in December 1992, Ames emerged from bankruptcy under
a plan of reorganization. The Company is liable for certain amounts to
be distributed under the plan for certain unassigned landlord claims
under certain former Zayre store leases on which the Company was liable
as of the date of the sale and which Ames has rejected.
The Company remains contingently liable for the leases of most of the
former Zayre stores still operated by Ames. In addition, the Company is
contingently liable on a number of leases of the Hit or Miss division,
the Company's former off-price women's specialty stores, sold in
September 1995. The Company believes that in view of the nature of the
leases and the fact that Ames and Hit or Miss are primarily liable, the
Company's contingent liability on these leases will not have a material
effect on the Company's financial condition. Accordingly, the Company
believes its available reserves should be adequate to cover all
reasonably expected liabilities associated with discontinued operations
that it may incur.
The Company is also contingently liable on certain leases of HomeBase,
Inc. (previously named Waban Inc.), which was spun off by the Company in
fiscal 1990. HomeBase, Inc. is primarily liable and has indemnified the
Company for any amounts the Company may have to pay with respect to such
leases. HomeBase, Inc. recently consummated a spin-off of BJ's
Wholesale Club, Inc. HomeBase, Inc., BJ's Wholesale Club, Inc., and the
Company have entered into agreements under which BJ's Wholesale Club,
Inc. has substantial indemnification responsibility with respect to such
HomeBase leases. The Company is also contingently liable on certain
PAGE 13
leases of BJ's Wholesale Club, Inc. for which both BJ's Wholesale Club,
Inc. and HomeBase, Inc. remain liable. As a result of the foregoing,
the Company believes that its contingent liability on the HomeBase, Inc.
and BJ's Wholesale Club, Inc. leases will not have a material effect on
the Company's financial condition.
5. During the fourth quarter of fiscal 1997, the Company completed the sale
of its Chadwick's of Boston catalog division to Brylane, L.P. Proceeds
of approximately $300 million included cash, a 10-year $20 million
Convertible Subordinated Note at 6% interest and Chadwick's consumer
credit card receivables. During the second quarter of fiscal 1998, the
Company paid Brylane $28.8 million as an estimated adjustment of the
cash proceeds based on the closing balance sheet of Chadwick's as of
December 7, 1996 as prepared by the Company. During the third quarter
ended October 1997, the Company paid Brylane $4.4 million upon agreement
of the final closing balance sheet of Chadwick's as of December 7, 1996.
6. During 1996, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 128 "Earnings per
Share." This statement specifies the computation, presentation and
disclosures for basic and dilutive earnings per share. The Company will
implement the standard in its fourth quarter period for the fiscal year
ended January 31, 1998. Using the new method for computing earnings per
share, basic earnings per share and dilutive earnings per share would be
as follows:
13 Weeks Ended 39 Weeks Ended
October 25, October 26, October 25, October 26,
1997 1996 1997 1996
Income from continuing
operations:
Basic $ .65 $ .52 $1.25 $ .86
Dilutive .62 .46 1.18 .79
Net income:
Basic .64 .56 1.24 .96
Dilutive .61 .50 1.17 .87
7. On April 9, 1997, the Company approved a two-for-one stock split to be
effected in the form of a 100% stock dividend which was subject to
approval by the shareholders of an increase in the number of authorized
shares of the Company's common stock. On June 3, 1997, the shareholders
approved an increase in the number of authorized shares of common stock
making the two-for-one stock split effective. The split was distributed
on June 26, 1997 to shareholders of record on June 11, 1997 and resulted
in the issuance of 79.8 million shares of common stock along with a
corresponding decrease of $79.8 million in additional paid-in capital.
All historical earnings per share amounts have been restated to reflect
the two-for-one stock split.
PAGE 14
8. On June 25, 1997, the Company announced a program to purchase up to an
aggregate of $250 million of the Company's common stock and Series E
preferred stock to be accomplished through open market purchases or
other transactions. Through October 25, 1997, the Company has purchased
6,496,045 shares of common stock and 2,500 shares of Series E preferred
stock at a cost of $182.4 million. The Company is no longer seeking to
purchase its Series E preferred stock. The average price of the common
shares repurchased was $27.97 per share.
Through October 25, 1997, the shareholders converted 769,800 shares of
Series E preferred stock into 8,310,927 shares of common stock. The
Company paid $3.8 million to induce conversion of the preferred shares.
PAGE 15
PART II. Other Information
Item 6 (a) Exhibits
11 Statement re Computation of Per Share Earnings.
Item 6 (b) Reports on Form 8-K
N/A
PAGE 16
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934 the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
THE TJX COMPANIES, INC.
(Registrant)
Date: December 9, 1997
/s/ Donald G. Campbell
Donald G. Campbell, Executive Vice
President - Finance, on behalf
of The TJX Companies, Inc. and as
Principal Financial and Accounting
Officer of The TJX Companies, Inc.
EXHIBIT 11
PAGE 1
COMPUTATION OF NET INCOME PER COMMON SHARE
(UNAUDITED)
DOLLARS IN THOUSANDS
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 25, October 26, October 25, October 26,
1997 1996 1997 1996
The computation of net
income available and
adjusted shares
outstanding follows:
Net income $105,165 $ 87,510 $206,204 $153,650
Less:
Preferred stock dividends - - - -
Net income used for primary
and fully diluted
computation $105,165 $ 87,510 $206,204 $153,650
Weighted average number
of common shares 163,328,447 155,450,506 161,056,470 155,444,520
outstanding
Add (where dilutive):
Assumed exercise of those
options that are common
stock equivalents, net of
treasury shares deemed to
have been repurchased 2,089,589 2,326,724 2,018,767 2,221,756
Assumed exercise of
convertible preferred
stock 10,093,603 23,481,782 16,213,226 23,481,782
Adjusted shares out-
standing, used for
primary and fully
diluted computation 175,511,639 181,259,012 179,288,463 181,148,058
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
statements of income and balance sheets and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> OCT-25-1997
<CASH> 143,602,000
<SECURITIES> 0
<RECEIVABLES> 110,117,000
<ALLOWANCES> 0
<INVENTORY> 1,459,607,000
<CURRENT-ASSETS> 1,730,185,000
<PP&E> 1,187,649,000
<DEPRECIATION> 494,847,000
<TOTAL-ASSETS> 2,668,758,000
<CURRENT-LIABILITIES> 1,282,492,000
<BONDS> 243,177,000
72,770,000
0
<COMMON> 161,752,000
<OTHER-SE> 894,532,000
<TOTAL-LIABILITY-AND-EQUITY> 2,668,758,000
<SALES> 5,146,220,000
<TOTAL-REVENUES> 5,146,220,000
<CGS> 3,940,216,000
<TOTAL-COSTS> 3,940,216,000
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<INCOME-PRETAX> 355,219,000
<INCOME-TAX> 147,238,000
<INCOME-CONTINUING> 207,981,000
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<EXTRAORDINARY> (1,777,000)
<CHANGES> 0
<NET-INCOME> 206,204,000
<EPS-PRIMARY> 1.16
<EPS-DILUTED> 1.15
</TABLE>
