TJX - Earnings call transcript Q2 2021 | The TJX Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the TJX Companies' Second Quarter Fiscal 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session [Operator Instructions].

As a reminder, this conference call is now being recorded, August 9, 2020. turn call to to like would the over conference Mr. I President Chief TJX Executive Herrman, of Officer Ernie and the Companies, Incorporated. Please sir. go ahead,

Ernie Herrman

Jordan. Thanks,

we some has begin, Before opening comments. Deb

Deb McConnell

for including, Form today The United XX, XXXX follows you, to consent subject prior filed and States are The vary limitation, Company's recording, XX-K are of of and Further, XXXX. is and without cause risks statements Thank profit the good could these TJX today of laws. risks Company's same or discussed morning. copyrighted and the TJX materially. filed in that Company's actual and we copyright that or and XX-Q These Ernie, to Q&A SEC make otherwise Form reproduction, in plans the the about May uncertainties Inc. other plans violation implementation Any use the results retransmission, XX, without the the Companies filings, and forward-looking prohibited the the by March results comments other are the of

turn Thank to this And have may we of the appear transcript inaccuracies we by that responsibility a publishing Ernie. third-party, in transcript. of while approved take I'll that over the now, no Additionally, it call back for you.

Ernie Herrman

Good morning.

Deb and the me on Goldenberg. Scott Joining call is

important Before I racial I'd the business issue global and our like update, of to speak ongoing justice. to pandemic, comment on COVID-XX the

by the our the First, we're communities including thinking customers whose of serve. pandemic, everyone affected and been we their have associates lives families, and

front decision associates and health want and emphasize been the our well unprecedented and being I environment, we has our of making. center in this to navigate As customers that

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more Going their of business. to continued hope through to contributions reward associates these forward, our end for to opportunities and we identify recognize XXXX the

our results. overview Now second quarter of to an

many For were I to the quarter, there want positives highlight.

First, I TJX am so culture. of our proud One

While and successfully. together shared came expertise global their and the our collective business knowledge reopen stores teams to our were closed,

practices many include to our developing protocols merchandise, and expense examples stores, savings global our to and and offices, identifying non-merchandise together global excellent and prioritizing investments. working Some safety our merchandise longstanding our global and centers buying for relationships best operating leveraging ops vendors, and distribution source capital maintain with of

outstanding generated landscape. second our current liquidity stability we the flexibility cash significantly navigate gives during increased financial Second, flow us the quarter, which we and and as

Overall, were quarter our results, bottom second we internal our comp stores a are top great strong Both quarter. pleased X%. retail very two-thirds our were little lines of our our exceeded We initial open banners of well the given across particularly only very Next, and sales compelling only trends sales saw down with countries, plans. customer than to more values. open all our store response and and

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what response more reopened world, was the leader a our for XX-years. And have customers could been we trusted our have stores as imagined. of around we beyond We the than value

demand we we also margin Markdown simultaneously Markdowns media, absolutely merchandise value millions the stores. to we lower-than sales saw grateful the shoppers. as allowed we reopened comments We phenomenal due during we have as always customers, loyalty we call our been positive than our brand was been And which are shoppers hearing on customers. excellent. bring better to our the due love, from our Further, to of consumer anticipated of and were great also us what it, from was with significantly valued fantastic. for the was stronger Fourth, to social greater-than-expected has buying, quarter. anticipated particularly

across the for other and several our substantially. all as quarter, the HomeGoods strong sales geographies, throughout merchandise Next, We especially increased saw home within our across strength home our in chains at demand chains and we business. saw HomeSense of in categories categories our

HomeGoods double-digit comp of only each quarter. month Specifically, increases delivered sales open the

Lastly, with from reopened satisfaction initial our the as scores safety very we we stores. pleased customers are

return expectations. our shoppers have seen indicates stores, in We visits to which place the protocols make put to safety their we also us and are that meeting health

exceeded internal Now reopened to sales the our initial our cadence of in sales. Again, plans. stores

and impact we and third than quarter factors, COVID-related a quarter. store demand Following inventory due sales lighter and was initial of demand, number the that into consumer believe of behavior planned. second through traffic to the as and this we moved wave the moderated strong on including the We

we environment. our As we inventory weren't would reopened, we a the normal flow able back like in to to optimize stores

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forward. strategies these to put have We going in of place mitigate inventory some delays

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Scott? open the for questions. and Now call for I'll over turn financial Scott to a then update it up we'll

Scott Goldenberg

comments quarter Ernie's the truly to us details thank associates is with and to first I'd we and over are Ernie, Their second getting start our morning and today good appreciated. like flexibility today. results. last five Thanks I'll for dedication echo all everyone. additional months our global of some where

our we our quarter. were As our only bottom Overall a particularly were results, divisions of the line open more mentioned, little Ernie stores very were that our across given only second higher and with anticipated. exceeded thirds pleased Overall, of than internal and plans comp we top each stores with open than X%. quarter sales down two

Although, customer traffic great basket in customer down their items significantly, values increased responded more carts. consumers our as and average was put significantly to

excellent, lower in conversion measure can to mark margin our stores up. mark than anticipated. merchandise we by on it, downs we As was Again, and was where it driven strong

tax significant second from This in benefit was due booked quarter was primarily than quarter in loss that mention a first Moving expected the bottom our negative driven to share quarter by carry loss back the impact was second to that results. reversed I the to expense. per includes want expense tax line, tax and our better

As to decline due a inventory, was second to the combination our factors. of quarter

levels, racks to social store like our safety inventory wider have to aisles associate customer distancing, through in First, planned promote primarily we intentionally fewer stores. lower and

had than stronger second Second, to replenish than store we faster quarter, had created anticipated. which need in we expected sales inventories the a

for a lower Lastly, inventory spoke was the the the flowing we some to to. merchandise inventory in is availability reiterate, marketplace quarter. also To overall delays of levels had stores back Ernie excellent not in and as factor in

we line. to spend want bottom on I a very highlight I with some items. our that Again, want expense moment were to pleased Now

It In to also savings to paying were lens, During tight expense the costs Similar TJX had the for closed. liquidity. highlight COVID-XX from to as two were the thirds savings compromising during the when and and when to well the our ways divisions we as we than cost earlier the were our little our stores for better. Company. important several expense the second for than we active that personal did depreciation. of while first open incremental realized business in enhanced we we were equipment primarily health payroll time to kept operate second our only monitoring temporarily were stores that we again, which to most government is rent, store quarter strengthen of expense that we incurred have quarter, quarter, included quarter, more collaborated Without bottom in still the we line capacity, continued to appreciation these and second to our find were quarter cleaning been first also the stores expenses and costs all the related a under closed, payroll store associates One expenses, to related incremental for anticipated. These while support These associate associates bonus closed utilities have to much to without our quarter credits, work pandemic, associates. controls. reduced business, included would Through more associate the significant were minimize incremental we due referenced payroll our These of expenses by Ernie offset related closed. the protective of investments

about that XX% merchandise when reminder, we're pull fixed closed. excluding can't back costs, a are of on we expenses, As our

being repeat rest resulted levels which inventory the in the lower in buying proportion expect quarter, our the would Lastly, of expensed of year. a distribution and not for costs greater we the to

in associated estimate quarter, not and includes incremental of expenses net costs does which interest we year, Looking expense. the of for fourth related incremental distribution equipment. to goods. the basis will at COVID COVID protective payroll American expecting approximately XXX Further, expect now help and that related This points our the we third additional providers include both personal remainder freight incremental costs are and related party expenses centers ongoing to North process third our

the identify recognize fulfillment Additionally, reward center associates. end store opportunities and as more hope already to distribution we through XXXX to mentioned, of our Ernie and

Now position. our through liquidity second and cash I'd flow current like walk quarter to our

sales operating cash paid driver quarter quarter. the in be through quarter. paid for second the mostly will third $X.X primary the as first the in in we the quarter was for of The flow. merchandise Further, the was sold merchandise, our buyers second generated During quarter, in billion bought flow mostly the

tight down revolving credit also now from We the XXXX. in second spending to under of cash. the in amount we the March $X.X billion and maintain third quarter, billion expense total and available drew controls capital back quarter increased liquidity revolving during strong a facilities quarter facilities credit by off generation, quarter. our the cash $X second beginning strong flow We With our $X.X of million, have paid borrowing Further, the at position capacity the ended a our we we in $XXX of us. with billion

environment, shareholder our plans. with resume range current capital as of million previous to growth spending long-term the we to Given million, million some up $XXX be now be we expect our $XXX to prudent support distributions. to investments spending systems fiscal approximately XXXX, will $XXX continue we In distribution our million, expenses, our and to capital center of $XXX from and

to further any expect Regarding we in the Also we're to do declare over at but the this long-term. buybacks not not dividend this paying shareholder quarter, third distributions, shareholder time, remain stock committed dividends year. planning

third demand comp we're seen the is third the XX%, slower Lastly, of global overall in beginning store back selling as open This to the plan to in we've the traffic, uncertainty, to To this pandemic financial the this whenever quarter, fiscal trends our and are entire August. we solid successfully that has TJX school management taking providing current pleased believe and with in we XXXX financial an And planning on time. of sheet. of team sales normalizes, the the company. these at due quarter to not wide Further, any business uncertainty middle for sales Wrapping outlook to the a times, stronger position. environment In the TJX are will navigate this range and our difficulty well great anticipated guidance additional XX% line points, through for it the impact maintaining season. we behavior, our confidence second we quarter consumer for as environment. reiterate even Ernie’s are we reflects which right of believe and balance July be will improved forecasting sales or with only and the decrease an we planning up, the of since approach sales the

your questions Now To take per ask up to it your Thanks, schedule, you we questions. person. will now this we open call on please happy to and going limit keep to to are we're that questions. one

Operator

Instructions] Our Kimberly Greenberger. [Operator question comes first from

Kimberly Greenberger

just wanted like putting sales together inventory -- you think I by it not as pieces categories, you hot stores. being the timely in flow as inventory some available to marketplaces all -- demand there's impacted or as suggest. like in Ernie, would ask to the that would sounds I much are said Also, the

maybe out next you do demand year that really meet wondering QX that into just I'm a for you where you next the back appropriate so looking year normalization of think So one, inventory all equilibrium manner that's over months. consumer can Thanks two, of a four in of in time this there? Is forward point that sort the get process? calendar so there much. think you are timely flowing in-store Or you at look levels as three, and where we're

Ernie Herrman

Great questions, Kimberly.

those, Let's about the because the of on in your mention and I career terms anybody and thing would so secret so which much ratio the every, some brick foot right apparel, talk you the the priority foot piece But impact. as aren't related -- can that's give of get eight to customer think or Those availability there's casual of we apparel, on. say much, script those about right a seven consumers of non-trending of traffic your your is of we is for in thing one customers, is, as going begin reduced we did just of things, script. the a more categories the going now, traffic -- or one don't We comfortable and not having in categories, what's our question -- some are of don't we with But stores, this only every it's out in normal just it, number this the a traffic the other a any categories, areas no number -- there's off, really inventory then of start and need would out in biggest say you the so that the I say handful one in piece the now. across non-essential of store coming is the more had which mortar. or with retailers. say are out of right I now to the is weak traditional hot

a chunk Kimberly, for us that there, reason. I think hard we it you see on have right and can from but measure footfall is to probably every of a the what number, it's that's So

other question -- the -- questions you're I we a you. Now two as go you of from well We get asking up, few accurate. were these brought on might the figured inventory both things the and go are we to

how yes. at we on a the buying goods and trigger would ramp started inventory, do has and Could say getting shutdown I a rate, -- do demand here's The the running hindsight, sooner? would until to pulling so that's and accurate. the was actually traffic to kind and as obviously the run have rate had about get up a I months time, of weeks availability time, of enough, less have being variables couple at sure we could this we say have thing all we slowdown When last strong how couple run would with probably stores. goods you is then when weeks. In On -- up, just went. cautious for the some here. ramping got pent were we guess actual to say into the I talked we went we the up more of very time When foot post it coming hindsight, later we runway only we we And weren't the with on the a were do in the which those then you shutdown to of

Part goods. we ramping got was then the it what's happened hard More inventory. and So time part also just here. quarter, impacted been shipping availability. it it And now this by enter getting getting on had is was it of of was the and going also as on what vendors up had a we here have third

So they DCs, their held back quickly order. us write to as pick can are in distance as once to, has their and ability the the the you also their warehouses, goods up imagine, social had normal productivity for as we

that believe pockets we So to We've go got figure next I two Yes. before. categories run the second efficiently. categories. some then hot over work out they away And month into interesting question your about hot to haven't dynamic that's of business. starts as how our an in or more

we order future So in for top going on home. are for us performer is which more of push to a home, clearly our and the into

perfect will there, not will be the expect, would are probably that categories there not picture third we still some you because catch quarter. we As in

part But all but questions I they're okay. scold had question you, because Scott guess we understand the will actually. that's last actually connected your part three, you've Now three of

quarter. think fourth the So more actually we part the first we third make progress is, the quarter versus will into

quarter the all a down, has of So now, taking our you talking resulted merchants had actually which recently is We tremendous the which hadn't opportunities, in year taken for tremendous? advantage them the of. advantage think were really of a back of retailers Because we about, month do way next packaway ago. shut first Absolutely. availability started have

buying packaways look weeks in packaways, ago, a already few were tremendous we in we quickly few weeks the for last have next So, actually first started very but our down if you quarter.

going into share will more little-by-little start that's business and and the we get nonessential the we the consumers a start hard take comfortable tell challenge midterm It's of on year think all issues we shape really first I come that more to mid way, than to these today. now. well But and traffic. what have us, we home we're us we quarter, somewhere to as and be at would we're I pockets We as think are by be to tell then you, major in market to when of next be next behind we market think again. is going you levels get have in the environment, as better to of the share third at. is confidence given this fourth are out lot I as utmost get also around not much last a going of So And to begin quarter go on which through the we sure be we're all that's other store else haven't a retailers availability we to closure, closures year as some just looked little-by-little when inventory. any I year. foot going for by going to by quarter, of think in of going to between shape the take we quarter, means. transition we normalized some we'll up store have categories, are for and We'll I Scott we from identified everything better think driver

long-winded kind Sorry message, your for of question everything. the encompassed but

Operator

comes question next from Our Paul Lejuez.

Your line is now open.

Paul Lejuez

the to Are expenses sales on just based you merchandising. Thanks. on sort that quickly XX% product about then that I'm just second, planned? coming merchandise what than curious you're Ernie, just again. curious can and to managing as what XX%. you And stronger you down about merchandise? level react buying comp level to bit how to that inventory turn for relative you of the to normally that might you curious paying on that see talked to margins and for packaway a expected talked packaway little What that are

Ernie Herrman

Paul. Let's take one a at time,

yes, this So, get where But is, with -- that can level. this as we you are and once the it's headed. the are of normalized more is then month, inventory this kind how to And control. we less. because relative decide, we or to even range, saying, we foot up bit is nimble see of the more, buying giving flex traffic to once can't we our inch start be how our terms there traffic. knowing to thing business But from model we because -- relationship why about sales -- we of could bit that we're we're what to in little we a And wide a to to level, which get inventory the terms hoping little inventory we again, there judge able will through a in range, we're in yes, to truck point, that's a should drive a variables is always Scott your flexible

So, is and in controlling controllables, great we great which mentioned it feel our turns, about the the I’ll you script. the feel we're I store the about. thing other inventory tell we that in

healthy really So here's barometer. the

our really we inventory that's of in are than very turning We the inventories, lean which you And turn our extremely last -- And faster inventory the divisions most store, the fast. are were are turning the year. even give healthy. numbers, -- won't and

a which hit the in, were normalize. with certainly, that right great. to is we the when as walking not have they need we store is getting productivity in and now many But The just stores. he are are is is So what or she the great always in customer people buying, barometer. we We loving

your I was first. answered The margin I which So question, second. think the

and to opportunities still margin of have these The small goods going packaways begin margin. other Scott year I'm jump advantage to our number but we we on an as But packaways. bigger let give price off say, a is on would Again, would packaways, because significantly and are on been been normally the indicator, some what in been, So have and above has mentioned, our with. for but problem the Scott has very taking healthy mark-on last it's picture has can't market our mark-on merchandise we just healthy. I of number, it the very packaways been

and those line top on the want focused with to? more now. Scott, do traffic happy we're margin. that right our merchandise So you evolved we're It's

Scott Goldenber

packaway comment to packaway, just inventory. in the Ernie's Yes, first, the back going on

Just at really last of the few last end more same buying buying just time Ernie been have it's the indicated actually over he weeks, as where recently we've of July the packaway sheet it because said, of as the in we're been the early costs year. packaways that us of not packaway the But the just on or since we quarter, packaway at for second end delta buying quarter, most -- the balance difference. the X% it on the the and

piece that inventory in still we considerably a down certainly were was but So it. of

we the terms In all about the and question that, the expenses of sales -- yes, match are the the payroll. certainly your in rightsizing volumes stores, to in

XXX Certainly safety. COVID the points. overall to the that standards and think a been is a in is, and and customer -- does of getting customer indicated, basis the is some OSAT it I think it on aspect safety I we've good lot Ernie -- very I think with spent scores we're and But to in getting of doing our comply -- we're we've marks job, approach that's -- it. of us time as costly the high money indicated

people doing are when that what they that comfortable, try still be us we're hopefully an time we convinced back, what issue. -- and are they'll that like over right they certainly we're the are doing do they and the thing store, we're there. customers see And and when they'll coming to if safety is visiting doing are we So continue that to do that. going not we believe The

businesses far on based pleased that business where viewed as And an trends. clearly, it's pre-COVID customers, -- that's In The before they're the not but are seeing. of the home number and time, terms said their they're visits only a traffic being repeat in off did we're volumes amount when coming very pre-COVID a the back, Ernie the coming short home time we're again, when they terms from with of pleased that very -- and period mirror are that people and the what a visitations of they're essential large that and back. of as of we're large mirroring

but looking to you strategic when of at taken terms management. and margins, a -- In expense overall cost the we've giving I'm guidance, not

and at sales obviously costs. going on to our So, sales volumes, biggest be we're SG&A lower the is of cut having sales lower cost deleverage our having on to that due volumes we not

XX% offset the sales. $X not quarter, For our second in in enough billion per costs on to basis but a example, the significantly SG&A cut we almost store

going we we job. would long-term back the back be that medium operate. are so bone more, to our good gain And long-term ability a to costs and impact going Ernie and So, -- as share I not to think did to market said, and our we're we believe cost cutting cut get real to

think doing it we're job. I good So, pretty

mentioned doing. in doing Canada leverage is marketing, we're As the like States tri-brand we in ways United but Ernie to the less our marketing are running and more what

costs. a we yes, meaningful deleverage So, saving of I just will but be there due amount sales, the think are to

Ernie Herrman

in If I can that absolutely and from seen our The to probably the the stores just you at jump many media shopping devotion and could Paul. get. social the and social you've amount of passion of circulated our customers there,

obviously entertainment the the value and they how into these our that You during -- the stores had quarter. could are second ones come feel

really viral pleased were So that authentic was great that very marketing we with.

on not -- term. of point other We're short and we might went business the payroll, is And thing have come the things of one mentioned day the like back So what the would looking have looking does We're other been of I the you five this had of of just a at I I stores, to doing experienced. situation one those many pay everything and the brands was to benefit later? as as our every one it in every then it at spending out Scott now payroll. normalizes. and whole to mindset environment when thing out The our has environment, retail our domestically,

that's front We and and our we as the why not presenting customer the of the believe store in in, coming was as But very have service. OSAT as safety we the scores, customers And we in believe store. is every greeters Head to front believe scores involved actually of And priority leaders this. it And stores we're a for showing a us. Coppola, those is had we get Marketing one the who they safety for more did future Karen are are of ensuring and OSAT went presence help. that is our thinking that We at of of comfort pretty because the two going comfortable the part showing. this high well

think a highlight So I of coming that as wanted this. benefit we midterm to out

Operator

Our comes Lorraine next question Hutchinson. from

line open. Your is

Lorraine Hutchinson

the any revolver dividend Noting is morning. as good you the Can than thoughts that cash this this you've quarter expected. Thanks point? stronger us at just the flow around down paid update on

Scott Goldenberg

discussions Yes, we board have on ongoing with those the issues.

-- both I revolver. are payback the enhance think just then we certainly extremely given too this at pleased and point. It's early

certainly flow at will think cash it. make of position year we end the on re-examining quarter decisions. that, continues levels, get our we improve like this little but Clearly be year, the before we'd a be to obviously, our the end address and further to at better in either we'll overall to final third I any the of and if cash

cadence enhancing now. quarter certainly increasing more follow. We're our would talked little very this started the to would money it's put That being and be a still support get obviously we I've into we'll and think next convinced back to to probably long-term and expenditures. we then do it right and Aaron thing grow probably I we shortly the with are business about capital would dividends than or just the normal prudent

Operator

from Paul comes question next Our Trussell.

Your line is open.

Paul Trussell

meaningful whether least give bit issues maybe if between maybe goods home and the other appreciated? maybe more the this a can our Canada, you and I the in particularly spread, into divisions, that different quarter, be dig dig and will the see in color see little sustained strength sales wanted somewhat environment in you detail, to any international ask on of really at and into some just about

Ernie Herrman

question, Great Paul.

trend all, just of the of let's start at as So top talked first sales about. the you

believe home. people from continue will think virtually the pre-COVID. the is you fast all, behaviors indicate, the fourth if to well into more So now goods businesses more business, quarter, will we been yes, goods. quarter on you home right as of even the home a goods, year, continue. that just through home as externally But tremendous reopen, working of at on now, you know, It's future have have a and we staying And growing in the with first consumer based going have business not we of. Well, but but next dynamic people home next might the if

We are executing well.

to with we been grabs well out even the we from do goods more figuring And position, current happy think very share, positioned think up sales the are sales. home improve inventory are our home inventory said We that flow our has Having the there for and their current with in very position. there's area. productive and that. We just are market to inventory

color need that. you as any don't I as far So think

hand, out on slow distributor. had box a me Canada, you the very way, because which let were other the Now of mentioned, other the we go we

there chain, when already for allowed much the I the was sitting opened stores believe or of First about, all, think centers Scott, finally we distribution weeks, the we in distribution we three going pipeline to there distribution up finally the there we and and weeks, our another they merchandise stores. open opened did in few centers think of center from I when to not from opened, had as XX% less not I have

pretty tale going bit we're got we not strong, to opened first UK similar we're to to the our running states, that's of relative in a similar really different the social sales had that such businesses out on inventory on right behind been much help doing, that and a is would the additional third given are got inventory be to track their Then party really guess, fastest really of and our and spread had the and very situation and party forward as actually, our trends within divisions. still I a gone They shall I back that first online a were had other they, production been was sales then opening going help matter third quickly again you number got put say you on total. that productivity are very a Europe. distancing We And they back weeks. happy looks and right team the to percent of which only would we've our over and to small lowered credit better. so, pressure have then in We and in it now current our day where our then at Canada, the went help trying but out in chasing go that the get division to that give up waves as point Europe a position lot with a we're from So few with business, the the trends the and there. they there. But a reason Europe so this of been a and increases that's addition trends big again, Germany strong processing their one the but required and have facilities.

that really anything doesn't in big right direction any move total now. the in So

challenge goods out Marmaxx with So which and will has is months. is last the And think of think the a know they a inventory I of had hit that's, see the Marmaxx saying even so then I get will footfall when for there better home bit getting one you initially still have an you continue dynamics number is there. you all we look stronger challenge Canada

the number taking down funding three are to months categories thing we over the taking the are take hot one in aggressive Marmaxx down the the what into next defunding we putting six softer our very doing and and However, is in areas. inventory

sales very six and business, bode good maximizing a about hot year departments as which strategy now help Marmaxx we we we the well Marmaxx, keeping few they're as over within think also do that go significant three that next well you say the can can there, So feel to into those also because that sales. as home we think is to other next we Marmaxx know, going months, and as to won't use pretty a are increase that we

So answers it. that I think

Operator

question Altschwager. from Mark Our next comes

Mark Altschwager

the how thoughts are just QX? other have QX earlier go thoughts discussed your an some that planning to on any season. What and forward retailers are Some for And might versus holiday into there expectations start you how it? for drive

Ernie Herrman

interesting we've Mark. We about talked question Yes, that, and that. about heard

our because our of will So holidays we, always is of amount warehouse early. on we fairly four different the this then read we have and of applies then. ship brick and to we will we what do We've whether mortar fair done that ship Clearly all divisions. to we some it in a a get that can

source. As opposed it the goods ship, ship the in right distribution that they and to the receive other they to when retailers

goods in the the but We we to then have luxury the, flexibility to of is if already start ship we had shipping ironically own businesses. the coming and have can then on planned we earlier, it, because than more the stores business based we seasonal more not the, on a

heard we've our So, areas. planning it

have like that getting about people read to know enough know some about we pull though. if In hear help recent understand that have in don't you, that to our don't theory if know a fourth we're if to of social early fact, I business to a they're to shop see of they discussion that when a earlier a the know the why, tell can later still, divisions we've way had couple consumers that maybe earlier. not, I do for be unemployment I don't I things of theory, if I I would could quarter some shop. just going represent that necessarily. better to question with, the very, behave in there's don't are And lot if distancing value going be they to, the urge I will

though. question, a There has fair of great that. press on So, amount been

Deb McConnell

have next questions? do Jordan, we

Operator

Alexandra Our next question from comes Walvis.

your Your ask question. may

Alexandra Walvis

made on ask product in again that certain to early categories. comments the you the availability I wanted on

the a to forward? of you more it, in orders years. topic what Is market. variability then it improve And much if going those to I in will we help you can, those is the that of could elsewhere You move very the in it categories us categories what's And their mentioned expected own half? we case on vendors more then cutting sell-through there some are. second in of give the you you that through certain categories wasn't there a so availability a little elaborate as into categories, wonder, be those more confidence it strong understand that as causing but will types do

Ernie Herrman

Sure, Alex.

we that and of are a a major small in. know buy every So within in business. that buy significant we because it's categories portion close family buying the because the we only we categories, isn't portion of it think a a dollars And track significant -- week what number we would of we

significant, we I So it's would enough as we won't but that single would in and said the XX% it's what not it think won't we to want be are going we perfect as think Having like be maximize getting that, hot every dime. categories.

give simple. Now categories is reasons. gap since we what can as And actually for we competitive to imagine you think this then pretty question, happened far your other why we're as has don't having

becomes stop COVID when of of in certain or retailers why order a and specifically fall to had we as QX first fall the where gets it orders, get on to is taking the manufacturers started this lot then a lot also QX So non-issue think categories. better the you early a and stopped is

So all buying on they that end. happened their is stopped

has is because back really point more your So By quarter opened stopped high. get out, When first the up more. question. are way, than availability placing quarter, back to what rate, extremely taking, back cases, many a and then a naturally plenty. that driver you and there confidence fourth there's Do happened. situations I'm Availability people right starting that as high I now they now should may be some to not because as more the are said than that, vendors, But be we is me be imports. there will in in see going goods. total. that clear, see categories certain some May-June let level you everyone that out to really to why in run be only to it's they we be it's buying Having saying? the it buy wouldn't could other the start there in find the in And that's So most

have So categories the it -- normally category chasing. by it's we some exactly of just been come may not and would

strategically not be we category mean by can better it's right more way going now to But is So more buy. can than a than would be a perfect category of by or it. even total, buy, saying we I in

Scott Golderberg

and last little what similar -- is buy what reiterate as referring committed just said, they we this what Ernie the of Yes, year third was of normally percent in is a terms the Alex, that through Ernie to a to quarter, we're to at point. would

have And So of fact, And over we're goods. the weeks, amount been a placing in the significant anything... placing, few getting if goods. last we

Ernie Herrman

Actually more than last year.

Scott Golderberg

a in little I be that that said, of or Ernie Part will week last but up, think the I think than at as is year. a rate Significantly -- we're another ahead. two ordering catch more significant little

times. we'll is hopefully Some there that of But longer indicated to now right-size very shortly. we've started some are, because planned earlier, and catch lead that it totally Ernie

yes, so, orders. And significantly more

advantage So of -- the And that banners all of across lot benefits a have. that we think we different it's not the taking the availability. we I have have. of It's

us Our the buying terms offices greatly in world. have offices helped global around buying of

what good about buying. been feel real So we we've

Ernie Herrman

are disproportionate did the call we focusing, versus we hot we the a -- non-trending. we amount couple you again, categories, early, And are aiming into I trending a again, of months. are it placing mention what And categories, the

to doing if I you results just when around people line stores, in wearing. consumers in. every bottom the here, you That And and comfortable behavior of you and look right that they're just a that of you. as out And look You not of where. a consumers seeing dress from as the they of the what apparel. of country borderline across mimic not think and country anything will really be reports, habits I are who's everyone the wearing not would will the actually around, would be can type They you to types we're at which in of to buy, picture similar a now think at categories surprise the dynamics going running clothes from to give are on not other roadmap countries -- this we're business all want

Operator

Thank you. comes The final question Jamie day of from the Merriman.

line open. is Your

ask may your You question.

Jamie Merriman

me getting end. Thanks very for fill and much the at

talked Just I seeing about a at versus levels you clarification. traffic Ernie, different HomeGoods Marmaxx. think

have mirror with I or comes but it levels, to traffic a category in structure any tend or in is to keep Thanks. home And it, you our know in HomeGoods there traffic issue. same that at footfall higher cost drop levels cases? home it of seen costs So to factors of have those associated freight Marmaxx with mind versus when apparel? really as are the have And spikes seen a other sort then COVID you

Ernie Herrman

good Jamie. Sure, questions, great. Very

about like it first, would but HomeGoods business, just talking HomeGoods Marmaxx same Again, me just in you levels, you we've simply, answer Traffic know. nearly have call as a pretty in some let Marmaxx, higher footfall expect. that very is does So been is like yes. dramatically not this than traffic the as entire of

the cases. question, COVID part seen, your have the of We second

Marmaxx, little. think applies to Scott this and have we it just not to seen, I So this a to applies can talk and HomeGoods,

little where ramped We up. of have COVID a measure cases to cases in hit there a a direct by us in ramped states, the were where had impacted little states in was We the it more states sales and and had seeing in hit a the more those up, we footfall there. could the the COVID

better. However, average as of relative those states the to our leveled off, decreased got now traffic

decreased have starting now are to those hits those states because So moderate.

think Scott, I freight? on that. So answers the that

Scott Golderberg

Yes.

think impact, that been at Still overall an mix. terms yes, the it's The of your getting impact. significantly. certainly We've in just -- moderated So but exactly. question an I moderating of

are the Some but average down I have and we the where, want cost of for just chasing retails would a trend. a only say But down third categories, on fair categories that difference cost home, and offsetting point, the hot wash the biggest mix mix that of amount better categories indicated, having would it's buying kind of quarter quarter fourth likely of in is there this the the the that been is The really mention the to other Ernie the be as structure. the mix mark-on the goods. at based

I have say about all to that. So that's

impact. net-net a So I it's don't think

Ernie Herrman

to you, would Thank all Jamie. and for joining like wrap I now today. you up us thank

will everything We hope again be you in and here wish quarter stay well good And the everyone. you please updating November. we you. all you health, our at call going earnings amidst and team third from care on Thank on, TJX, take we

Operator

conference that gentlemen for your call today. concludes and Ladies

You you for may Thank participating. disconnect. all

The TJX Companies, Inc. (TJX) 19 Aug 202021 Q2 Earnings call transcript