Under the agreement, TJX’s purchase includes Sierra’s office, fulfillment center and photography studios in Cheyenne, Wyoming, its customer call centers in Cheyenne and Cody, Wyoming, and its four stores in Boise, Idaho; Reno, Nevada; Cheyenne and Cody, Wyoming as well as a Technology Campus in Fort Collins, Colorado. The transaction, which was completed Dec. 21, is subject to customary post-closing adjustments.
“We continue to plan on launching e-commerce sites for TJX brands and this acquisition adds immediate scale, capabilities and infrastructure in e-commerce, which we can leverage in that regard,” said Carol Meyrowitz, chief executive at TJX. “We believe we will be able to build upon this platform as we continue to develop our e-commerce strategy. Further, we are confident that TJX can help grow the Sierra business profitably through our buying scale, marketing and our other capabilities.”
TJX, parent to TJ Maxx and Marshalls off price retail brands, said it expects the acquisition to start having positive effects on its earnings beginning in fiscal 2014.
TJX December Comps Soar Past Estimates
Sierra Trading Post is the leading e-commerce platform focused on name-brand closeout and overstock merchandise, and one of the five largest entrepreneur-owned internet retailers in North America.
Founded in 1986, Sierra Trading Post offers more than 2,000 high quality brands and has saved customers more than $3.5 billion off retail prices in the outdoor gear, shoes, clothing, accessories and home furnishings categories.
Peter Solomon Company and BofA Merrill Lynch acted as financial advisers, while Ropes & Gray provided legal counsel to TJX.
In other new today, TJX raised its fourth quarter earnings estimate after it posted stronger-than-expected December comparable store sales. Comp sales rose 6%, more than double the 2.3% analysts’ average estimate expected.
As a result, TJX now forecasts its fourth quarter earnings to be in the range of 77 to 78 cents a share, up from its previous forecast for 72 to 75 cents.