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Thursday 23 February 2017 BUSINESS
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T.J. Maxx parent steps up expansion, plans new home chain

The expansion plans were fiscal (year) marks the 21st
announced as TJX an- consecutive year of posi-
nounced fourth-quarter tive same-store sales; there
results that topped Wall are few in retail that can
Street expectations, bol- boast such a long period
stered by strong sales dur- of sustained performance,”
ing the holiday season. Neil Saunders, managing
“Looking ahead, we feel director of research firm
great about our prospects GlobalData Retail, said in a
for growth in the near and statement.
long-term and building our He said it’s especially no-
market share,” CEO Ernie L. table as off-price competi-
Herrman told investors. tion is increasing from retail-
TJX has been one of the ers like Macy’s developing
bright spots in retailing since their own discount con-
the Great Recession and cepts and as more people
has drawn shoppers away take part in resale markets
from mall-based stores as it like online auction sites.
rapidly expands and offers TJX said that in North Amer-
more up-to-date merchan- ica alone, it sees the po-
dise. It now has more than tential to open about 1,300
This photo shows a sign outside the TJX Cos. headquarters in Framingham, Mass. TJX, whose con- 3,800 stores with annual more stores. It said Home-
cept of selling popular brand at discounts has stolen share away from the traditional pillars of sales of $33.1 billion, com- Goods could reach 1,000
retailing, is accelerating its pace of expansion. It plans to add 1,800 stores to have a total of 5,600 pared to just under 2,800 stores, not including the
over the long term.
(AP Photo/Elise Amendola) stores with $21.9 billion in new U.S. home concept.
sales six years ago. Tradi- For the period ended Jan.
tional department stores 28, the Framingham, Mas-
AP Business Writers ing popular brands at deep the long term. And though like Macy’s are testing the sachusetts-based compa-
FRAMINGHAM, Mass. (AP) discounts, plans to expand it didn’t offer details about off-price concept as they ny earned $677.9 million, or
— Department stores just even faster and test a new the new home store, com- look to bolster sales, but $1.03 per share. That com-
got a double dose of bad home store that’s different pany executives said the they’re also cutting back pares with $666.5 million, or
news. from its highly successful goal is to make it distinct on their overall number of 99 cents per share, a year
The parent company of T.J. HomeGoods chain. enough from HomeGoods stores as they see customer earlier. That beat the $1
Maxx and Marshalls, which TJX Cos. said Wednesday that people will shop at counts continue to fall. per share that analysts sur-
have taken a bigger share it will add 1,800 stores for a both. The first two are “It is a testament to the veyed by Zacks Investment
of clothing spending by sell- global total of 5,600 over planned for later this year.
strength of TJX that this full Research expected. q
Airbus profit dives on problems with A400M military jet

ANGELA CHARLTON maker’s profits plunging and demand. Airbus CEO than 700 planes, up from when it’s absolutely un-
Associated Press last year and will weigh on Tom Enders acknowledged 688 last year. clear what will happen?”
PARIS (AP) — Surprise new the company’s financial that “the jury is still out on Shares in Airbus sank on the he asked. Airbus has 15,000
costs for the long-troubled prospects through next the long-term success” of earnings report then ral- employees in Britain, mak-
Airbus A400M military jet year, even as it forecast the A400M, but insisted “it’s lied, trading at 66.81 euros ing airplane wings and
sent the European plane a rise in aircraft deliveries absolutely necessary” to in early afternoon, barely space equipment for
maintain it as long as Eu- down from Tuesday’s close. planes made across Eu-
ropean militaries depend Airbus management is rope. “We are watching this
on it. Airbus on Wednes- holding discussions with space, like other industries,
day reported that its profits governments about reduc- and we obviously hope
fell 63 percent in 2016 to ing further financial blows that no additional barri-
995 million euros ($1.04 bil- related to the A400M. ers will be directed or will
lion), from 2.7 billion euros Enders blamed the plane’s interfere with the competi-
the year before. The com- problems on misguided de- tiveness of Airbus,” he said.
pany reported 2.2 billion in cisions made at the birth He also played down con-
charges on the A400M in of the program in the early cerns about possible U.S.
2016, including a new 1.2 2000s and exacerbated by protectionism under Presi-
billion-euro hit in the fourth problems with engine sup- dent Donald Trump. Noting
quarter as it reassessed the pliers and delivery delays that Airbus has an assem-
overall cost of the program. that led to big financial bly plant in Alabama, other
With governments delay- penalties. plants opening soon and
ing payments because Airbus still forecasts high suppliers across the U.S.,
of A400M delays, Airbus demand for its popular he said, “I feel pretty good
warned that cash problems single-aisle A320 range about ... our contribution to
“will continue to weigh sig- jets, but are scaling back the U.S. economy.”
nificantly in 2017 and 2018 production of superjumbo Airbus’ chief rival, Boeing
in particular.” A380s amid lower demand Co., beat expectations for
Airbus’ commercial plane than initially expected. fourth-quarter profit de-
forecast was more upbeat, Enders said it is still too early spite a slump in revenue
after a year that saw a rise for Airbus to rethink its oper- from its defense business,
in deliveries but a drop in ations in Britain as it leaves and it also forecast a rise
orders. It foresees a rise in the European Union. in deliveries of commercial
deliveries in 2017 to more “How can we review it jets in 2017.q