Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to The TJX Companies Second Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] Call is being recorded, August 16, 2023.

I would like to turn the conference call over to Mr. Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc. sir. ahead, go Please

Ernie Herrman

Sheila. Thanks,

begin, Deb comments. we some has Before opening

Debra McConnell

could morning. statements results filings, XX, Form the we Thank uncertainties plans you, materially. today implementation SEC forward-looking risks good and that and plans risks filed company's XX-K XXXX. Ernie, of make the results to company's The about limitation, are subject March discussed to including, the the company’s without cause actual are vary and and These the in

Q&A the TJX of and or comments laws. follows recording, are reproduction violation The these Further, prior use TJX profit by today that and other a same of Companies, retransmission, consent copyrighted prohibited otherwise without for Any United Inc. is and of States or other the copyright

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exchange press today impact our Thank have the in Reconciliations measures results today's tjx.com, in website, discuss non-GAAP our foreign detailed of posted also are section. and GAAP the the website, divisions tjx.com. other on you. measures We release section Investors our of we international consolidated to of Investors on and our

it to back now And turn I'll Ernie. over

Ernie Herrman

Good morning.

TJX. on to John It once to begin is again Joining hard the company. to store, work today call customers. our hard for want distribution to me continued dedication Klinger. associates their and that for by for associates extend recognizing center to commitment special fulfillment their Deb is day I'd our every brings their like and I life to our and our work thank a business you our very global

comment wildfires to in want Maui. the on I

our the Maui And on of a and and loss. donation the help by our Food the grateful to essential and we are are time, with teams same To have the supplies. are deeply are local safe. donating the associates that We saddened ground, Bank relief made the at efforts devastation Maui rest in Hawaii

pleased plans. with profitability per highlight I second Now sales business our our divisions. X% and our comp our it sales, quarter to share drove second of update well earnings increased and our I traffic extremely at were above overall all want to increase, performance am customer that as quarter all results. and

As for a customer the us, transactions. represents of reminder, customer traffic number

I am single-digit Marmaxx, which performance increases division, and our both sales pleased particularly comp with the delivered largest high in customer traffic. of

were of Clearly, improved values to very Our sales visited overall branded, our stores. mix significantly shoppers returned strong. overall when sales merchandise our and terrific and fashionable apparel our growth. they sales comp and home with great accessories And positive resonated

terms margin of earnings both significantly versus per year. profitability, and profit last pre-tax increased share In

be continues raising quarter, the full comp per John very outlook Importantly, will share. talk are to pre-tax for sales, performance above-plan year and we healthy sales this profitability second moment. in with margin in merchandise a margin our profit our earnings to and

and traffic We They and our are of profitability. the laser-focused the continued our company. of and the excellent execution been on improving driving momentum pleased teams business have very with across sales

feel is and The quarter year. the great start, third a off of plans strong very remainder our the we for to about

fall terrific to our are outstanding seasons. is gifts we during of and brands we continue with The selling assortment opportunities mix outstanding confident offer to and holiday an that loaded will marketplace and a shoppers buying the of

geographies across hunt continue to that excellent us differentiated and our additional market come. values for us to treasure share and experience our allow convinced shopping years many to capture serve are well We will

results I second in more I'll to Before turn our continue, call the cover to financial John detail. over quarter

John Klinger

on gratitude also work. I details their the our I'll start some add continued to everyone. to want of my with morning, hard for additional good all global second and Ernie, quarter. Thanks, associates

sales that store customer above comp to comp were see mentioned, of well of We the pleased store improved increase entirely traffic. an high Ernie in very plan our end both customer quarter. driven were the each month overall and sales by our As and sequentially traffic growth

was on due As seen our with expected, units is of more we impact with ticket mix, historically. to line cart. largely their merchandise in average was in by lower the sales shoppers increase into business the items down we in an what putting offset ticket have This

sales its apparel mid-single digits. with comp overall continued high accessories, including comp increase. Overall, momentum business, single-digit were Our home up

grew billion, sales an quarter X% net of versus to fiscal second $XX.X the increase TJX 'XX.

This on we XXX our expected year. well bigger Second was quarter freight basis from above-plan well up consolidated was plan XX.X% versus our as to points costs leverage lower sales. expense margin above last a due than pre-tax of benefit as

the up Gross higher margin points. freight This primarily a initiatives Gross in freight of freight increase. a and our basis the accrual from expense was increase also well inventory driven benefit comp XXX on due margin remainder to lower as our rates significant X% margin our was costs. of a our as remainder by year-over-year was merchandise from year the hedges, and benefited leverage and benefit by lower from adjustment. This -- driven fuel year-end benefit

Our were gross second supply accrual investments to and year-over-year margin shrink in headwinds chain quarter. the

factors. The to payroll points reserve XX margin receivable, points incentive incremental basis to program German to planned Net above income related basis higher contribution XXX year. wage and benefited and increased a TJX SG&A costs profit a to COVID Foundation. pre-tax include government accruals last by of interest a due These versus quarter due store a results, Second combination and

year XX% of our expectations. Lastly, $X.XX were up versus earnings above per we very pleased well share last and also that were

each outstanding across strong of saw second was to apparel comp divisional second traffic Marmaxx's increases month Marmaxx, entirely every were driven great throughout customer comp by both sales it quarter sales increases. Marmaxx's see traffic. single-digit accelerate store an quarter. quarter X%, performance. and home to moving At sales and categories our the comp region. increased Further, Now high Comp very

low, demographics. We high-income performance also across saw consistent mid- store and

strong basis on. profit driven segment primarily strong XX on expense sales and margin freight up points Marmaxx's costs XX.X%, as year, last well a versus mark second the as by from lower benefit leverage was quarter

continue We Marmaxx drive initiatives of beyond. us at with about we and and are help the and pleased the have to year the traffic excited remainder the sales planned for momentum to be

were HomeGoods comp basis both points benefit At X.X%, see XXX and for pleased a that want long-term second capture quarter year year. costs. note very market. increased of the increases we due our benefit accelerated banners to the and entirely throughout comp plans was comp second our HomeGoods, second I month confident half end profit HomeGoods HomeGoods that quarter. sales lower HomeSense remain traffic. every additional quarter significant we see also in -- freight to of the positively full continue to HomeGoods to a also increase grow our store home and will and assume and traffic segment the from share sales the to customer opportunities in margin up U.S. We X%

customer At sales increased. up was X% XX%. margin profit and Canada, store Segment traffic comp were

shopper only off-price shop have the we As in loyal major brick-and-mortar customers. retailer base Canada, a value-conscious many in very

that well attract more banners. our set confident and across we to up growing are customers our to Canada continue We are footprint

Australian It see store comp up. International, was businesses. At at sales to and and also great comp traffic sales increased customer was European increases both TJX traffic X% and our

Segment constant we During receivable launched International Germany and online due impacted a spoke TJX basis to to negatively for on profit was XXX was I Austria. German shopping in earlier. currency the reserve X.X%, by basis margin also related the over points quarter, which to the

in overall our in with our performance banners are happy very continue improve are can We and division this existing profitability. confident our countries we to grow and

it to As small a e-commerce, business. remains very percentage our overall, of

new they see visit. add to shoppers merchandise time continue so new that every our We sites to can something

to Balance the arrival in of environment. result as about levels saw was outstanding a We of down the quarter, decline early feel Similar second the a was inventory. balance year-over-year to inventory primarily to the Moving in-transit of from elevated sheet great delays that we levels versus inventory merchandise the the and X% chain year last 'XX. first fiscal time. at quarter due supply buying larger

Ernie fall the holiday merchandise, positioned we is fresh our assortments well and to loaded said, and marketplace flow stores season. this to online As with are and

liquidity our and distributions. with finish I'll shareholder

$X.X the programs. cash with billion the cash. second in the of $X.X In quarter, returned we through generated to maturing debt operating and quarter flow billion we million second $XXX and million $XXX and dividend ended shareholders in buyback quarter, For down paid our

I'll Now it turn back to Ernie.

Ernie Herrman

tremendous through forward. convinced other that John. key will five to retailers and be these by highlighting from to allowed for kinds that apart and us Thanks, successfully many core grow retail of economic have a going strengths nearly I'm start set many continue decades. advantage the cycles TJX will strengths I

First value is leadership. our

just is value on great At Our been great day consumers offering goal every price. a value item, always offer than customer. TJX, to to has every every more

and also to all banners quality We one our best value attract the to and means retail in brands, us, all continue consumers For is the delivering shoppers. fashionable believe of retail, great of proposition our around will value merchandise to desirable world. our

assortment. floor most merchandise merchants changing The developed flex and consumer our models preferences. to stores the to retail the flexibility world. brick-and-mortar space react to trends allows chain ship Second, week, to stores supply formats buying need multiple hottest we a to have the quickly one our flexible The to the support and of our of adapt our marketplace close in us store to and opportunistic of our our ever-changing allows flexibility times individually in

areas. all across time demographic. We and we they to appeal sell successfully inspire all them to visit value-conscious our wide shoppers to aim excite of Third, every operate allows stores us. and business to shoppers and and we good, across stores, everyone, The demographic across to customer to a best flexibility want an to better income appeal of and curate our assortment us merchandise

expansive in us last which of buy. the believe network be we why of some vast built than Next, to more of vendors, best are many changing an always approximately so that marketplace over XX,XXX will year, relationships the This we is over there decades we the in enough retail. vendor numbered universe have have reason and confident the inventory all for

experience. Our merchants right job terrific best-in-class X,XXX-plus right for hunt the of stores shopping selecting mix create a the and does categories brands buying fun our of treasure to organization

business We the also our a tremendous as of globalness see strength.

to replicate. global we a differentiated our a country treasure have to allows in. that shopping built buying We global This to us in be infrastructure, leverage organization would create difficult experience operate presence supply we hunt highly believe each chain integrated and

and and certainly Last, to Teaching least, be decades-long the talent is the our we believe growth of deep why a global Through that have and successful tremendous a continue of advantage internationally. combination strongest management that I organization the in these very off-price them, our long not priorities strengths is as execution in of truly one we history development talent continue companies teams, talent. but experience always have the world. believe key are our of been the and U.S. of have our we all I will performance. retail TJX. and base at around

the Now in keep the I'll briefly driving sales see second we traffic opportunities half and of the to highlight year.

are we right can bring all I said as availability This holiday First, right fall the of range and great the wide brands. we consumers seeing categories season. the across at phenomenal that gives a assortment us values product throughout and earlier, confidence

we have planned. initiatives store we our Second, about feel that great merchandising

visit will We are to year. shoppers gifting being changing rapidly for be With frequently we our inspired a our on initiatives what's destination we the gifts continue assortment, throughout to as to believe see new. particularly excited us about focus

Each our have will capture while our channels, value of we the social strong digital, compelling of existing us third, leadership reinforce through brands consumers will television planned. continue our our attention new believe marketing including top of and to combination of customers. a campaigns media. We mind campaigns with And very keeping position

profitability. to Moving

margin strive we'll our our that I not profit we the you is We the previously for term. not exceeds be continue XXXX now a complacent plan our profitability fiscal end testament -- are for XXXX. announced the will entire organization. target did that pleased fiscal work and hard of to extremely want that high XX.X% assure to adjusted This commitment of to be long we over the improving and pre-tax of

deep the teams work commitment continue as Before and I close, a the across our acting I'd responsible corporate am of to also reinforce I to to globe our proud do. citizen, like

our are corporate annual we time And fall. about expect our you'll look doing. report publish at I take global We learn hope this more some to to responsibility to website what

half and had seeing teams flexible quarter. of of Summing the the convinced organization position up, We've expertise very strong remainder with the the off-price have great are excellent I'm and characteristics we us are our a the that third we the our operating the success business year. model put unmatched. business pleased start of momentum to continued the across in in are our for year, performance first very the and for within the

am our culture, opportunities component share key I am a I in and capture of to is the additional the success. I'm so we term. of which profitability I differentiator market extremely and confident long major proud the see about and about of believe a future excited improve our TJX

I'll turn third for to the open call we'll it John quarter Now full then up our questions. and guidance, cover back and to year

John Klinger

Thanks, again, Ernie.

of this pension by impact impact fiscal but that offer, to a pension approximately associates payout week. rates press depending their could includes have I on lump Before 'XX release vested to or $X.XX an settlement fiscal I We their benefit. stated primarily morning, to offered former be participation charge, a yet of want have and TJX pension a higher the factors. lower not 'XX as calendar XXrd this other remind $X.XX, benefit, commenced we payout receive start, that noncash our in opportunity you who sum anticipate negatively Also, EPS we could eligible

To today the payout of of are be offer. the impact providing clear, any not pension guidance we this does potential include

of in profit settlement charge the EPS our We impact adjusted quarter. results expect exclude pre-tax potential this margin third to the from and

our Now guidance. full to year

X%. store now of comp are increase planning We X% overall an sales to

excludes XXrd guidance a the As week. comp expected reminder, from sales our our

expect be additional expected in $XX.X XXrd to billion consolidated to This revenue $XXX range approximately now full includes sales the the guidance year, $XX.X we the of million For billion. of week. from

an full profit XX the now of from said, margin be profit margin of increasing the we basis basis, this pre-tax planning the XXX XXrd XX We're XX-week basis points adjusted of range Ernie XX.X%, to benefit points fiscal we're to of would expected approximately adjusted be increase As to expect to year pre-tax profit margin an XX.X% our excluding 'XX's to guidance. full profitability XX.X% in represent now a basis year On pre-tax week, range XX.X%. versus points X.X%. of in

to 'XX. initiatives in enjoyable that on indicators to in-store shrink while flat this shrink, an we be can we to continue customers. sure laser-focused for experience our Regarding are shrink At time, our believe making shopping we our us maintain continue plan leading fiscal

effect of will of count our we reminder, a As full the year. we do shrink until our initiatives not a accuracy or know annual the indicators the of full inventory end at the

Moving range on versus on, XXX point we're to year gross margin last in year. basis XXX planning full to a basis XX-week XX.X% basis of a points adjusted the increase XX.X%,

freight to lower all by We driven increase be expect costs. of benefit virtually this from a

distribution assumes We of are from margin. also chain benefit a continuation headwinds also merchandise planning our This from guidance supply and investments incremental wages. a center

freight recapture years. three over level saw We prior are pressure are very with given of the we we seeing significant the the pleased

benefit looking forward pull ways a includes year fiscal at this in and of freight we reduce benefit remain most 'XX. expecting costs. We our freight laser-focused expected were Our to of the

we're expecting versus is full be a XX-week basis by primarily incremental wage basis and incentive last on, approximately XXX point to on XX.X%, accruals. store This Moving increase SG&A and expected a higher costs payroll increase year. year driven

approximately $XXX about a average basis modeling of billion on For income X.XX count tax assuming currently rate share full million, XX%, of interest net a weighted a purposes, XX-week year we're shares. and of

result increasing As to share full we're earnings $X.XX these a of guidance range to of a our per year assumptions, $X.XX.

increase $X.XX. 'XX's share XX XX-week XX% earnings to XXrd would week, $X.XX approximately benefit expected On expect to me, the excuse basis, of in per $X.XX adjusted this of per earnings a range XX% represent -- share versus from to adjusted we be fiscal an an Excluding of of the $X.XX.

an Lastly, open increase fall This XXX net some our X%. expect XXXX, reflects approximately about we stores year. shift a new to into openings now of next of in fiscal of planned

comp be to quarter. ticket less to second an average to again, expecting store third planning to to the the in up mix. We're increase traffic. the down second customer growth planning driven also expect be merchandise be units by due overall comp sold. quarter, the quarter, it we was Similar in for than to X%. We're to Moving X% sales We're increase

quarter X% sales range to third the expect to in $XX.X a increase $XX.X over be to consolidated prior billion We X% year. of billion, the

to last basis range freight We're points planning third pre-tax the XXX versus quarter year-over-year offset of planning accrual. and our XX.X%, XX.X%. up be basis XX.X% third from headwinds profit by range in from supply margin benefit inventory in year. costs margin points shrink to a investments, to We're the XXX to expecting chain of gross quarter We're cap partially significant lower XX.X%

third basis wage points and versus payroll of This approximately quarter driven increase and store higher last planning XX.X%, costs incentive SG&A We're is incremental by accruals. year. up expected XXX

third net $XX and purposes, of For quarter modeling we're currently a share billion XX.X% count of X.XX million approximately shares. weighted a assuming of average and interest tax income about rate

share to up expect $X.XX. be last We $X.XX, adjusted earnings to quarter year's range $X.XX per versus in the to third of XX% XX%

XX-week adjusted For to quarter, the up to of XX.X% we're pre-tax XX.X% per comp adjusted a to fourth range basis, earnings the of $X.XX. share X% planning store to margin range on $X the in sales X%, and be in

call. guidance quarter the We will our quarter on more detailed provide for fourth third earnings

the to I Ernie's close, that to want I term. Before further continue we improve to echo comments profitability over see long opportunities

best outsized sales. always, to for drive way with As is us the profitability

traffic on better on Further, margin. see retailing and and capture driving goods We and additional laser-focused even sales we continue the merchandise buying and market opportunities to being share. to grow remain

and costs At supply expect time, we face from investments. the wage chain headwinds to incremental same continue to

our our call in February. detailed annual this give beyond As year usual, February you on on guidance -- we'll a

pleased teams sheet and our in return I an of significant our -- want invest are Further, with the and a and our cash shareholders. have execution sales to business our to the simultaneously the In across in plans. very position excellent we balance financial reiterate our we are are confident in closing, with growth and that of strong company profitability to

to are we your happy take Now questions.

As limit can are schedule that questions per answer as please so keep many every as we we one call you the do we person, to quarter, and to questions on we your can. ask going

Thanks, questions. up for open it we'll and now

Operator

[Operator Instructions] come Boss. Our first will Matthew question from

Matthew Boss

a really on Congrats nice quarter.

August, off and demand quarter over and traffic to what the start course Could quarter, just cited you of maybe you opportunities. progressed on Ernie, third a off-price how the elaborate strong very buying So you've John, the tremendous second across outlook in elaborate about on you the seen as we full AUR line and both to could shrink And then, think apparel and relative freight home? wages? year and improved just bottom

Ernie Herrman

question. at which QX got indicator is very the the good said strong little of for Matt, coming I as Obviously, out where Sure. when gave each start, QX looking month stronger. a I

comps stronger QX comp the And quarter high experiencing tell sequentially or across running Marmaxx you as QX. just asking as now home, I they health category the you have about every we store. such When a think on. into well. differentiator momentum were are you would So any it like you imagine, And in apparel between are this and have has did, can we continued we when throughout about I went as were that you

improvement. we expectations. we terrific. it Marmaxx X%, and be in HomeGoods you've we Clearly, signaled And good is you were of in a HomeGoods down I'm about business all from And we seen has go into in very we had really are board even for -- area. within parallel to also QX. home as across the that very that our was because were incremental And exceeded now remember, HomeGoods, thought has as fact, X% QX up healthy that talking the QX, the there'd been feeling which We

So I hope answered your that question.

John Klinger

question half guidance. And you year the me. Matt, as just for I mean, as full to the back answer had far and

see our confidence to our increase in have initiatives, the back -- half confidence the We gives we continue us to guidance. opportunity increase increasing to our top obviously, sales line our freight

were they environment, As expectations. it's far and far fantastic. line merchandise margin, the buying pricing as with AUR Look, in our as as In

full As and really again, confidence opportunities to pleased line us our margin Ernie see take quarter to we the to areas drove said, in continue top this increase strategies certain improvement. and We're year comp. our our merchandise at price how gave

Ernie Herrman

was John, last there a as your was ticket talked how a mix drove we right the and you you can't our in expectations, our line ticket on meetings pretty little down judge on might as I we purchases. as result, about line. in the the to bit remember, be were slightly categories talked our explained top some it our it departments on of was of question, touching because confusion as And its call, in and we create about had the -- in and average that growing we relationship some much sales we multiple of

And what see we had so of the lines we're to all the end really it pleased along went QX. back of at discussed

Operator

next Lorraine Hutchinson. Our comes from question

Lorraine Hutchinson

and just I signs confirm are was you're your mix. my you just if the think customer question is And to any into what said, working seeing of coming wanted decline then think price banners? trade-down any I the which ticket of increases was just a you like-for-like

Ernie Herrman

it. Lorraine, so we got

to So yes, like-for-like pricing continues the work.

that, the categories selectively qualitatively see we as certain very measure as data move beginning, areas in we opportunity we values. We well there from by forward. and our where perception as do we we And again, of certain our said customer have point, as measure which certain to that performance items we another very and continue witnessed as do we

ago has from up couple another of launches. of perception our sales. well our point talk perception consumers First have where all, actually year as turns we are versus a now right ticked value we actually a as But seeing our can

second the against ironically improved. as improved, tells value then category against thing viewed is we you a perception average, And working. we're which has ourselves So it's have

is again, at see where can So those And We our said, barometers. you where, good in look also are Lorraine, we our the turns we've sales. it when as metrics have though, and item we if that where bring adjust think where then we didn't work. But has an our it item XX-plus percent. to we back to it been rate work, hit and founded needs ever

was part second again, of your the the... So on Lorraine question,

Lorraine Hutchinson

signs trade down Any of a consumer?

Ernie Herrman

down, would down for over as think store a trade in say, not a it's closures is based trade as, on to trade because which would or What Trade the we some well it's measure down. hard us I say I category. cases,

hard capturing So categories us What feel other carry. increased that it in to for from measure have we store trade I can am or of is share can counts. their some the market in down. see of And closed getting that market retailers share we some downsized sure we we are because

John Klinger

We mean Yes. that think in lot I And continue there's we've share. for of been while. environment execution. retail market a to that gain a we got volatility strong we the feel

Operator

Roach. Next, Brooke hear you from will

Brooke Roach

long-term freight this contextualize beyond of to potential target, of the FY key improvement With previous that the pace opportunities your XX.X% you and you margin future seen profit rate help some about greater improvement? you've year? these drivers 'XX recapture visibility of are can How that thinking

John Klinger

Yes. all Brooke, long can whether better. do better guidance as that, to control, we to improve we giving expense say we're not continue I it's strive to now. But the or time, always, buying strive term right

Ernie Herrman

in to helping is also a in jump sales I us in what Brooke, leverage. also that John his would have earlier said just been notes, driver

the of she These customers back. great customers here, capturing are there merchandise. well because having as sales, we a the our really in as get customers so are terms And to for two make primary store it we've we environment as the and tried new while captures do believe customer components get of experience sticky the

So we doesn't off overnight. momentum believe turn just

share as all So that getting is for amidst visits will us increased move driver also captured and margin be that, internally market gain I we we're additional think part here we're of new a feeling what the we've as forward.

Operator

will Altschwager. question come Mark from next Our

Mark Altschwager

Great.

maybe the we QX. it in acceleration first seem for QX nice guide just look to high a to the QX, and end John. guide, for margin does at of the With respect imply So if

that, the should are accrual that you're are factors got of big guess, extra be of mindful week, those the the But some some know from cycling Now you've what shrink we other beyond I factors. the benefit I there? so maybe

John Klinger

Yes.

as comp. increase feel the confident continuing We we saw, did So line. drive that to you top about

The quarter, and -- is other comment second so the we us the benefiting third in shrink. thing that quarter on

unfavorable then as just favorable So first, the with fourth we we and accrue, -- in in our work along in control we how to try on and That, second continue -- an third we third much line quarter. initiatives have quarter, a second impact the to costs continue impact those as and to we have there's and can. with freight

Mark Altschwager

follow-up This normalized versus the the a how in both be the moving a maybe comp Marmaxx a contributing algorithm picture, we are some forward? from and still bigger thinking Ernie. And noise I about half. first there's to with for the HomeGoods is quarter contribution in comparisons while in comps. and Marmaxx HomeGoods where positive back know should HomeGoods just the But

Ernie Herrman

Yes.

So further we Mark, comp obviously, thinking exact won't out. we're the give

We're our continue good point in and an Marmaxx. home of HomeGoods continue with to TJX saw. And you mix. trend However, the hitting point, the about pretty inflection that to just improve to really we will we're are trend with combination improve business, contribute do half feeling that will in back and -- to opportunity on to continue your pretty the a much bullish to feel versus the the on home HomeGoods we here the

also the years when few ago you whether Europe because business full or Also, in business. good clearly our to is there -- indicator improved, the has of about businesses family within tend that's roll about Maxx in just, Canada in all talk specifically, so T.J. business stores a up our component those home HomeGoods, also we and it our that again, then to key -- also a but home and has we and Marshalls, talk TJX home used fact

reason John driver that over another and again, long a for about So as be us home sales and I the we to talked traffic have continue why term. move forward, will

Operator

Shapiro. will question Marni come next Our from

Marni Shapiro

quarter. Congratulations on a great

you your has changed remains coming how seeing driver you just increase if biggest co-locate, your frequency more about If seeing of very little I shopping in continue the has move one curious could very, usual? your strong. little different traffic shopper been concept the to marketing to an your a talk are than you but really the that across bit you're bit, your And shopper know from to shopper is it talk a Can next stores? and different you I'm your often boxes.

John Klinger

in Yes. that It's to hard read detail. for us

more to that customers increases Just that we be generally Z attracting, transaction attracting longevity tend which customers excited see, at to you the customers. so. that we're more look at the we're customers, looking our speaks we are younger the we because brands. we about how really And new Gen have, They that to attracting we're when more believe those that

Ernie Herrman

Marni, some that ones I get more. though can thing do that even Yes, you, are we the cross-shopping tell spend of in -- the can't for

after So it is to that. go goal of a ours

we higher we in because said, shoppers, that's at been number terms spend. attracting future of which growth look and of millennial have is John the As what disproportionate Gen future a new really Z

way, years, five So out on that look when to the we after by our for purposely go -- that. we seven and strategies

customers and groups data And compare domestically. really that in we Europe, can we all on our some what Australia, good at. that the all skewing we been that We gender get do against stores -- the general compare our are age and includes about to feeling some of competition. do There's shoppers younger, and that, look at, we've

Marni Shapiro

week number? all Alabama all Gen I I quick I a pretty the clarify do you just Zers. those Rush must said could to shop make over you follow-up, are it XXrd just sure on then John it want And TikTok I and watching be think it, revenue you they quickly. right. But guys because there, down though got

John Klinger

Yes.

XXrd is pre-tax points on it's the $X.XX about So XX week basis worth top our to per share, to and earnings million $XXX our line. profit the

Operator

from Alex next will Stratton. Our question come

Alex Straton

Congrats and on quarter, great John. another Ernie

just like like guidance I the from with think by. than by you improving starting looks guys out more zooming year just you're the what full beat it here,

months when ago. you maybe optimistic spoke So it the you're seems few we like more half back on a than were

just drivers you about talk optimism? the that what there can are So increased key to

John Klinger

half we continue freight then as initiatives, we're the beating we a that $X.XX, to And year. -- We that benefit as to we we're really a And back X% that of FY QX, X%, we're sales. from pulling within by this our increasing we're our the what we we -- gaining opportunities we assuming be to given forward And on in year. took that's feel but happy strength X% lot beat to we're -- see $X.XX. 'XX, comp increasing the QX in again, far in the the by and X%

Operator

Our next Drbul. question from Bob comes

Robert Drbul

big accessories, Just a a better and of consumer questions. there year? helping couple the rest to, responding this of best the is seeing throughout in you that terms On of sort sort good apparel then of and what is and quarter what of is you're mix the

Ernie Herrman

tell would we all Great areas. the you availability has question, change there what used good, better, script proportionate, big Bob. best categories get really sometimes phenomenal Not pockets as where in business. again, but amazing -- I our are across don't an been that's really a there I to

that be and the always our buyers of not certain to depending on our because mix -- category, we're they a that -- knowing on know be going terms in way. strategically exact buying opportunistic we want their So the to we're are great balance by in

pockets doesn't would in other same down I the So a et and want women's say, example, pretty that better, accessories. imbalance. our more of buyer healthy, an cetera, buyer okay? certain the up brands, of of good, an have handbags bit been It's and and and we than areas necessarily little determined been and certain varies, by tops, ratio best, for So but

best, as mix you always opportunity way the those we following when for that X don't because have see, we they strong to we an weren't exactly we the even we year just ran that that be more pockets comp. could better, as have pockets, have balanced as And in where the as those at good, opportunity was can still they look want it it of So and we mix we a and want the into We some the the to quarter that in be, ran if apparel second balanced way be. areas.

we the across that But area have can have picture, as and there talk where could we certain little also you the strong how because on other a -- quarters. quarters, about about total done that doesn't isn't And doing we merchants imbalance. spend you array, to question of know we your funny, love and in merchants, see hours look we brings couple really look could we a a we better the vast never a it's one and So go than find quarter it that.

strong question good, a Nothing's front the best. strategically of For really on part, great really balance most asked. just changed you that better,

John Klinger

And I'll said. what just Ernie to way, the by add

and offer mean, it's to competition, Our ability real we differentiates feel us a and advantage. best, good, really from better our competitive I

Ernie Herrman

we look, And you a do very not price retailers And They're in include certain, or years, get us talk levels. up we into But script. deliver they're our sometimes as of to fashion to or And great that. a benefit is next segments key few will didn't is much think organization more over the meetings, age -- looks that different our about could have. on on that. A, XX think I a which don't zeroing it. in point. to if different demographic us, I be most the it And the around scenario. most strategic to know investor to I advantages five one that certain get good, it continue set huge. that That's or I do the better, we best fact

Operator

hear Next, Dana from you will Telsey.

Dana Telsey

Congratulations the terrific on results.

of of suburban of you your the in can also departure with Bath results? anything share trend Or and lastly, how Bath you performance is home a As then profile you And all HomeGoods, Bed any been is the & Beyond, the the Beyond the beneficiary additive a think store, difference an the about enhancement locations? stores, & improving that? there much And urban? of have the or in elimination for at that's of of real of estate Bed from green

John Klinger

thanks for Yes, Dana, the question.

As far to that this profile. do we as when the of from fit the start as close. we'll real best estate close opportunity, we stores see we've been our retailers stores, -- continue to on take And we've locations and beginning the that been

we what more for rural we see income Marmaxx, demographic, particularly saw these As as and are especially opportunity. markets the across And of seen, of some and sales department performance far areas consistent see more more store very we've as across see those closures ourselves, is and sales you in that the the geography. -- as

a we Beyond the for and it we've along & Bath been as think far as while, market gained losing they've So market share, way. share quite gaining Bed the

take been sometimes So that, to feel outstanding, that we've bit up. read comes to home it's our in a little been that as hard and execution market share it able but we has

Ernie Herrman

Yes.

as -- measure, those think, we we feel believe the John's Bed just a retailers getting but inconsistent in home the little been to though, some even but Dana, we well from from getting their So that some are Beyond guys, I Bath to yes, not tough business online a of point, & we're have or as execution.

opportunities. think just other I creates that

for that's store -- talking. end everyone at the demand, we're then And

great. not -- great other The

they place about vendors of supply shop. now mean The retail buying another to to talking But for for opportunities. even take to certain thing places of creates customers level, their advantage less more our to them other have good we additional the and additional merchants, is because today at been goods. get it supply they We've need now sell

equally, beneficial. guess, been that's I So

Operator

from comes Our Corey next question Tarlowe.

Corey Tarlowe

as perhaps are on head you wages. thinking the into of wages, or about we follow-up in on the remainder quarter? the throughout it little throughout the outlook of year know fourth inflect as AUR the a How Is rest the that And commentary expectation just then I had in moderate a I bit positively it John, follow-up should the guide the this year? this moderated that or a ticket quarter.

Ernie Herrman

I'll Do start see And we are rates, start our that we were in to -- line as wage. attrition you in wages. I'll wages. in in. our with at to headwind a last that wages we're where We're with with or to market our actually look they going in year. Wages, our when take improving rates attrition competitive want continue be every

company. So to attract associates our our right wage now we our feel really to where good ability at is and

John Klinger

On the ticket query.

we yes, less QX. actually expected. as we pretty than ticket, didn't going QX, a So think, is much is the to little where It move to half, moderate, down the we be to were moderate. kind back which of in It's we we came in in

for years, qualify and to that down, always I not talked way we not like I've do we average ticket. do However, drive -- this top again, this our

to where them. which voted categories supplying in And ticket, drive the And buyer down tell who really the can by so generate. ultimately way by determine on the after go by is that the average by looks market really need we and they're them. we the we by So hard selling. customers, which merchandise driven It's way, manager the at the we'll level, which store is

We categories because don't then mix ticket apartments. really consumer by which driven of which drives to less demand, our the more dictate That's to of. or teams of have sometimes those the

moderating that us. higher little QX. a get little categories better could lower certain QX, we're now, based ticket, on we hotter, look like right if on or project could the that we move Obviously, So on or a opportunities order. certain But be than can

how touchy overcommit of don't a buyer it's make demand to customer one a AUR and always because want bottom are it's Does and So we is driven. where sense? up the heading we so that bit where firm by

Dana Telsey

Yes. That's very helpful.

Ernie Herrman

QX. it we moderating is But certainly now, -- like Yes. right it looks or

John Klinger

mean And what we mean by less. moderating, down

Ernie Herrman

Is down less.

John Klinger

can our and see we've back. offering mean, they're top And coming the we're had. strategy want, line what the you the impact customers on that I of they

Operator

Adrienne question from final Yih. the comes our day of And

Adrienne Yih

to all it's actually. great Great. see the acceleration And in divisions

Ernie… So

Ernie Herrman

you. Thanks

Adrienne Yih

talking my about Obviously, is, welcome. question inventory. You're

lot buy and about of looking then to the want strategy, off-price of little sort actually upfront. buying I a open it, of got visibility the much the bit buying not We've to on do composition forward intra-season. but So ask so you great buys

headed And is from last so so different in sort just year advantageous can and is how of putting as holiday? the to that position you you you that contextualize

Ernie Herrman

I Adrienne. all Sure, framed the like it up. way you

different those So all are not is market way Right one, in-season however, buying obviously, the buying ways. on closeouts now, the percentages give each we mission the we is as buy we of do won't those the pace do we -- always, so the because by buy by pours to we ourselves loaded. of types

back earlier a will upfront pull more the that on to we is now, or So right little of as we're over all what buy closeout we tend in-season forward, even are because thinking, supply, move will Adrienne, bit least additional continued you the be type of we any as indicators there the situation. what were XX at six months to just to of a referring next buys

us I away. seeing that's prioritize. question. varied. months. and of what talking going the because, we We pattern pack a bit to next now right, do bulk and in little that it only opportunistic there, be upfront kind -- to don't is That of the it I'm we that's think, tell just has we're packaways a percent leaf business, answers the tend But your The fashion right what to couple versus of of that, see six a to open swings of our Again, our much up kicking do the on these XX And now isn't would side smaller hope business even we're many for we cases, our notch if pendulum over become points. the buy a massaging would and closeouts by I the business, don't or how we closeouts. our of

Operator

our was of final day. the That question

Ernie Herrman

on everybody. everybody would We Take I call in third you. forward care, updating you again to our all joining us to Thank look earnings today. like for Okay. thank quarter November.

Operator

Ladies that your today. for concludes and call gentlemen, conference

all may you You for disconnect. Thank participating.

The TJX Companies, Inc. (TJX) 16 Aug 232024 Q2 Earnings call transcript