By Melodie Warner
TJX Cos. (TJX) acquired the online retailer Sierra Trading Post
Inc. for $200 million in cash as part of its plans to further
develop its e-commerce strategy.
The deal includes Sierra's office, fulfillment center and
photography studios in Cheyenne, Wyo. and its four outlet stores in
Idaho, Nevada and Wyoming.
Sierra, an off-price seller of apparel and home fashions, is a
profitable business with annual revenue of more than $200 million,
TJX said.
"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 Chief Executive Carol Meyrowitz.
TJX expects the transaction to slightly increase earnings,
beginning in fiscal 2014.
The parent of T.J. Maxx, HomeGoods and Marshalls has seen
increased profits for more than a year as it continues to appeal to
budget-conscious consumers worried about rising gasoline prices and
a slow economic recovery.
The off-price seller of brand-name apparel and home furnishings
reported last month its fiscal third-quarter earnings rose 14% as
sales beat consensus estimates and margins improved.
Shares were recently trading 35 cents lower at $42.
Write to Melodie Warner at melodie.warner@dowjones.com
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