TJX - Earnings call 3 2024 | The TJX Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to The TJX Companies Third Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded as of today, November 15, 2023. I would now like to turn the conference over to Mr. Ernie Herman, Chief Executive Officer and President of The TJX Companies, Inc. Please go ahead, sir.

Ernie Herrman

Thanks, Ivy.

has comments. Deb begin, we some opening Before

Debra McConnell

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

a a responsibility Additionally, that publishing the this that transcript. of while no take of we by have we for appear party, in transcript call may approved inaccuracies third

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

Ernie Herrman

Good morning.

our John. company. fulfillment start to their I and want to our hard to recognition Again, recognizing dedication is and me center commitment global the special their want TJX. call give distribution for associates continued and Joining to to work Deb on associates our by for store, I

our pleased third business I exceeded am our performance sales, earnings all per with quarter results. of to update third and profitability Now expectations. our share quarter and extremely

increases delivering at momentum in of apparel Home comp division, once comp particularly third strong, overall sales quarter, again our its was which versus for divisions. Marmaxx, strong continued both In increase outstanding, HomeGoods. traffic, at overall by all the our our X% was quarter, customer traffic. terrific were sequentially driven sales very entirely by the up remained largest sales sales accelerating and Our customer and second

sales divisions. our increases saw at and traffic and international comp Canadian also We

overall very healthy. Importantly, remains margin merchandise

Our a excellent internationally. of third quarter quarter, range fresh we across keep the off per to we to flexibility raising to model, our our us online term, fourth results on United am our brands successfully States demographic John allow keep serve stores teams that wide both comp convinced their I a strong moment. The outlook are a experience the earnings treasure our of continue growing in will and throughout confidence and the a quarter This in our differentiated us and flowing company in our lines. sales above-plan top continued we to is bottom of testament see the and full and for are growing strong execution the results focus With share. a start, to this year outstanding talk and availability and to third continue well in gives to our shopping wide hunt great can reach that the and of us will season across the merchandise business marketplace. our holiday assortment beyond. Longer and

Okay.

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

John Klinger

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

We momentum digits. increase sales grew sales, of TJX entirely Home-comp customer with third X% apparel a high single to driven by mentioned, 'XX. the mid-single-digit fiscal billion, in which with of As sales $XX.X accelerated and were quarter -- with traffic. net our continued saw store accessories a comp comp the Ernie increased X%, our plan well end Overall, sales overall above increase. high an were mid-digit increase up includes a and versus our

The basis versus year. pretax XX was points quarter of up XX% last consolidated third margin

margin expense sales leverage to from above expenses. profit the in our our benefit plan, points came a approximately primarily pretax and timing basis Our due stronger-than-expected XX of of on

As out in the we benefit morning, the our stated in quarter. fourth timing will expenses this this from release press we expect of reverse

of quarter are our negatively was closing of contemplated forward. reflected previous business no approximately in All QX e-commerce write-downs XX further guidance. business, of which our from the impacted pretax was by basis profit not results in HomeGoods with costs margin HomeGoods Third our points cost are expected our the online the there associated closing and going

our points gross leverage to margin gross margin were year-over-year a third basis significant driven XXX increase. investments margin sales versus expense was by quarter from the and year. Supply the comp headwinds was increase lower accrual due on up higher quarter. to costs. Gross last also from chain in shrink merchandise This benefit margin the benefited X% freight Third

XX quarter Third primarily costs, related income basis to above-plan pretax costs to closing of business. Net the incentive due and points approximately store year. HomeGoods wage accruals points last higher XXX benefited results payroll online due our of increased to margin and basis interest SG&A points, profit incremental XX versus by basis

up fourth previous in This benefit of pleased which This expectations includes online $X.XX. and not adjusted contemplated expect $X.XX diluted HomeGoods reverse of XX% the in quarter. expenses to unplanned were of approximately $X.XX timing last from our includes earnings we negative guidance. business, very share approximately of were that closing our year's out also the was we also the Lastly, due impact above versus an our that per $X.XX will

driven X%, categories comp driven performance. sales across a third was our profit from apparel sales to wage and demographic benefit entirely were costs XX% increased and payroll the on Marmaxx, lower very offset partially margin Further, leverage quarter was and consistent year. versus and segment store third incentive and sales high-income third low-, Moving by strong up very increases. Marmaxx' This a and At points quarter freight as both basis Marmaxx's expense quarter comp costs customer as by significant regions. store by traffic. divisional accruals. saw all sales, increases incremental mid- XX comp across was higher strong strong well areas last home

see HomeGoods Maxx our we will continue convinced market our comp HomeGoods, that and accelerated driven around share home our significant entirely to returned areas. customer stores income closing quarter in be today, U.S. remain We margin continue additional was increase market online increase region quarter destinations excited and With to double-digits points opportunities U.S. At more great the profit T.J. basis segment and term, shoppers. related confident We're our to are Comp performance demographic and opportunity strong freight was open in across expense XXX see and X% gift-giving to business. than pleased the very the stronger to traffic. bringing to season. outstanding different Marshalls capture sales an across a were even stores We sales on about to costs third costs in a XX.X%. lower holiday up country. from to this HomeGoods more to more each store very we by and Long share XXX HomeGoods third by in ability to benefit stores HomeSense increasing eclectic to partially leverage values This assortment due offset

an in a was X% traffic. margin profit basis currency growth sales and constant increase was points. store driven XX%, comp also Canada, customer TJX basis up Segment At was by XXX on

all given and of We capture up we store was that impacting have spend in basis X% up. Segment X additional In customer market in was the traffic down share profit Europe were shopper base we for can International basis traffic our pleased a and the inflation customer both high constant in unseasonably through very both warm discretionary TJX points. X.X%, Comp and banners. At comp Europe, were XXX Canada and increased margin a TJX our with loyal sales International, are convinced currency on Canadian sales Australia. performance weather.

keep this countries the and We across European in footprint profitability existing growing our we can confident are division. of Australia our improve overall that

percentage business overall, remains our of very brick-and-mortar to complementary and to it's As business. very our e-commerce, small successful a

to like the see profitability did As online our banners. other when we business, to not projections, term for path over looked homegoods.com do at long-term our we long we a

we of with pleased terms sales quarter. third our the e-commerce in were very trends their In other sites,

to 'XX. We Moving fiscal and the sheet marketplace. inventory. great feel of Balance inventory flat versus our was quarter third the about levels in availability inventory the essentially outstanding

with are very are holiday our We shareholder we distributions. and assortments to liquidity stores fresh our online flow to and finish season. I'll well this positioned

and we For the third the quarter ended operating shareholders in through $X.X the buyback third cash. billion our $X.X cash returned in flow we programs. $X billion to In with and dividend quarter, billion generated quarter,

back it Ernie. to turn I'll Now

Ernie Herrman

All right. John. Thanks,

we see opportunities the to Now sales the traffic quarter. keep I'd key in fourth and like highlight to driving

consumers' priority value marketplace outstanding offering the best and of are season, and in good, for holiday to environment loaded up top always, selling as a where be better extremely set stretched. especially we continues well wallets merchandise to with quality First, offer to are wide The range our is an brands consumers.

position strongly we are strongly this our to top a believe be destination gifts -- we Second, season. holiday positioned for

our selecting global job and from excite have to for to base customers. merchandise our the global Our vendor a available vendor done buyers our base best terrific surprise surprise

on find to are an of everyone for that We eclectic shoppers will assortment guests from confident choose list. their

being a throughout the gifting will we on In addition, year. remain destination focused

to product stores to fresh categories stores post-holiday retailers. online to Further, they throughout a can many time the our shoppers every us which we see they major want merchandise, mix ever-changing other something start plans consumers our multiple about we week visit. year. from of we and transition feel and great trends offer be and Next, following our differentiates holiday believe will times our new the season, the With

feel consumers season. mind the set drive marketing this stores value earlier campaigns our across month. our and be emphasizing brands, Lastly, believe are gifts launched this our of and our top our all of quality brands whole to up of of We we our very family. which shoppers great great to leadership assortment we holiday for for are about well Each holiday

customer experience our our Additionally, we very in-store feel as great remain about strong. scores satisfaction shopping

like spend world I'd the continue that growth for moment on. successful key and characteristics around Moving many the confidence TJX to of a off to our come. us years we that list can give

and our experience share our infrastructure all our merchandise practices the First, to we retailer values so best best across shopping We the deliver can of the have brick-and-mortar divisions that and leverage customers. largest we in off-price global world.

assortment in one buy hottest meet the we trends. models store and business This of most to us Second, need our and allows the changing to offer have to flexible adjust quickly retail. preferences consumer close

wide stores demographics. across shoppers successfully to across we appeal to mix we demographic operate all store a very our and Third, income curate

believe we Importantly, well Z and bodes which number Gen shoppers we continue of future. our to attract to an outsized for the millennial stores,

Next, we of source from than an in XX,XXX countries. approximately more vendors universe XXX ever-changing

As vendors we with a business. TJX their growing retailer many offer almost to way a want to attractive stores, them because believe grow we very with X,XXX work

All great allowed a us is us. Fifth, tremendous of of Many that this establish to gives have will some best-in-class buyers all of our and buying than off-price the beneficial quality us plenty be branded organization of mutually more best multiple experience. relationships we merchandise X,XXX of retail. our believe which available buying we for advantage. has of vendor there decades confidence believe

countries. continue we open the just we banners global our see our have to current in store opportunity grow term, to current with X,XXX-plus additional an Long stores significant base. Next, just to potential our a

our most unmatched. expertise we important U.S. but teams off-price internationally, which is is and have Throughout believe TJX, Lastly, the talent. deep our in management decades-long

we laser company. for Additionally, leaders focused and training teaching generation to the next of on our are develop

in of culture, differentiator is of proud component key such have so we and history environments. believe economic retail the of and our am of We another I that our types a successful major these of growth which characteristics is combination long I a Finally, all success. why believe many

experience are We an to our allow hunt of these a outstanding will and that advantage exciting business tremendous shopping day. every continue merchandise, convinced us treasure value aspects offering and are inspiring shoppers

Report. our XXXX to the you business. responsibility. corporate on: published and Corporate share Responsibility we pleased workplace, environmental The communities, XXXX we progress am focus fiscal Global responsible initiatives I report that areas summarizes our with to Turning X sustainability recently within and

to global report the website. I'm around through continue relevant progress stakeholders to our teams provide to our and our that initiatives, to and to we the work programs they for proud with are our our We in do support and globe information make grateful aim priorities.

off and always, season. strong read you are initiatives sales to this traffic our were to full invite planned quarter visit our holiday and sales about we year. Summing drive and As a we to of quarter throughout report updates have and fourth we tjx.com deliver another is profitability. to The up, the very to start, we pleased strong the excited

Going Further, of on internationally. market the the assure laser-focused and extremely convinced the well characteristics to forward, improving over I ahead are we take up States we I profitability to the TJX have am that business you of our want further United the that opportunities key see set share long term. in advantage of us

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

John Klinger

Thanks Ernie. again,

calendar remind Before the start, includes to you 'XX I an extra in I fourth our week want quarter. that fiscal

our with quarter starting Now fourth guidance.

be to sales overall store We will up expect growth continue to to comp X% X%.

quarter. fourth excludes the our a from our extra the week the sales expected guidance As in comp quarter reminder, for

fourth XX-week excluding benefit to $XXX be million basis from approximately in of quarter consolidated of $XX.X profit XX margin quarter is basis of We XX the the expected XX.X% revenue the in third pretax quarter now the billion, profit XX.X% to approximately sales expected saw to the The versus XXX from margin be we in the margin quarter, includes XX.X%, extra adjusted XX.X%, increase decrease benefit X.X%. the expected approximately an we of expect basis, the fourth range reversal to $XX.X the points we in from of an of fourth year's this which would expect represent the profit due pretax on to extra XX profit point to in of range the to a week. last guidance margin of expenses. timing million be pretax basis For of pretax range and to points expect week,

ongoing costs XX-week on range be in Next, from basis, expected to fourth XX.X%, increase This planning as from shrink and costs XXX XX.X% approximately basis our versus incremental supply points primarily chain to benefit significant XXX from lower we XX-week XX.X%, incentive quarter accrual, investments. On versus points a a wage We're payroll be basis year. to expect XXX a the a well year. partially gross our margin offset SG&A higher as last freight we're fourth is store to quarter planning basis benefit up accruals. up by year-over-year driven of and last

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

of -- result adjusted we fourth increase the $X.XX As to earnings represent we the of unchanged for our of The versus are fourth quarter for want guidance share sales, the per the decrease of XX% extra this these XX-week range to week, basis, expected $X.XX, excluding year's fourth per from we pretax fourth the assumptions, in is versus quarter and are On clear earnings expect our be now expect share be to quarter basis now assumptions timing saw last in of a that points we $X.XX in $X. benefit profit per $X.XX. an will the XX I a margin earnings to $X.XX to range third approximately per due margin and of the pretax to quarter reversal of earnings share expenses guidance. be comp share per the benefit the of X% to an earnings expected from $X.XX that quarter. approximately share and profit in previous

the Now full to year.

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

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

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

points to On XX pretax approximately expected an margin XX-week expect basis benefit XXX profit we profit X.X%. week, margin this We pretax excluding approximately XX.X%. XX.X%, of increase 'XX profit the XXrd represent approximately basis fiscal to pretax points would an of adjusted be expect versus year margin from be full of basis, a

shrink continue flat Regarding we still to shrink, can 'XX. plan leading are our us to that believe for fiscal indicators

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

expect XX-week basis year. margin gross versus we adjusted approximately a increase a year on to full last to be XXX basis, Moving point XX.X%, now it

driven from all headwinds assumes benefit supply We continuation this of a our a This be lower virtually chain by guidance freight expect also of increase from costs. to investments.

with pleased fleet costs level and very seen looking recapture reduce of forward. for are the far we've We year ways this focused to on freight going so remain our

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

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

earnings we per On third per adjusted $X.XX $X.XX. our share XX-week XX% understand increasing 'XX's flow that improve of our result complacent basis, $X.XX, this at share the our As fiscal the quarter it not profitability. XXrd and Long third the looking fourth to not a execution I $X.XX we of will that $X.XX. It's we related an through expect our represent pleased in planned that from $X.XX to business. In expected the increase did third costs the share approximately the ways quarter. to are XX% of to earnings quarter per an to confident guidance reiterate of for because quarter would to excluding reiterate benefit e-commerce the range a above important closing plans teams to be I to entire to comes range across of fourth the closing, earnings we earnings of versus our in in we very the to of are share week, to company when of a want to $X.XX full earnings are the beat year per of term, of want with adjusted quarter be performance,

We business position and simultaneously the and have financial strong a in return cash in to very invest to are balance our an excellent growth of shareholders. significant sheet our

questions. happy are to take we Now your

one schedule for As we it as so questions we'll your quarter, up please we questions many now we're call that limit Thanks. And going the can as ask person, on can. to answer you to do we questions. and keep every open per

Operator

comes from Bank first Instructions] Lorraine question [Operator line America. Our the of from of

Lorraine Maikis

above now levels. Your trending nicely gross margins pre-COVID are

said about complacent for be You you won't opportunities finding just margin expansion.

talk most you you're X can or margin coming expand So factors about your gross that the the X about excited in to years.

John Klinger

I mean where And XX% the retailers average ours as thing raise well. we top top other our sales as drive our can we XX% line important. gap continuing hold value see is is their increase in opportunities to retails, to

Ernie Herrman

way course, markdowns year the have appropriately also which teams goods we goods obviously the And and of at margin stores it's helped one it, has has is our retailing also allocation we we way right we're those of Lorraine, in the our our not mind flow year-to-date the of having have anything way how in with for have we in goods, float just flowed it's teams our it, better planning inventory only reason the been healthy of but managing in top the terms teams and time, of merchandise merchandise. a else, the because terms the in of the to continuing better all merchant And how our right right saved flow. sales, like bought last and get categories. and

bullish on So we're very that.

still vendors go. that's I those today facet cetera. why John goods which fall you're where that opportunities of to on was still about he's our same think advantageously, value XX% bullish is, mentioning more the now even And say, buy about the talking I think think But to share better margins would rate. the than merchandise we think can with retail positioned mean I store close then et of and not ultimately what we're John XX% very I I have off customers a and And tremendous a our we the off, when all another talking closures, at before. with base and with still there. of are market stores we're umbrella, We availability show ever to anticipating still if

buying to this multiple you're always why a over the have happy consistency team going So to is such back opportunities community. and we are night tenure on. like vendor of at I the to -- with take you All to years with would know we advantage factors going sleep say those what see going allows and seasoned

Operator

the to go Citigroup. line Paul we'll from of Next,

Paul Lejuez

margin. all is the unit merch more back the on Just can on year, line. Curious in And was if last curious, what upside pure coming average average little gross I'm considering more you freight, your excluding of from within even that. retail. talk where freight it a you bit than lost got And the unit and freight just cost margin also you about XQ

John Klinger

benefit have some our So points, but to favorable. rates on a and of try compared we as XXX We've back implementing accrual, through that. done about the can And we're FY it in lot obviously, gotten we've that we lost so year-over-year we be to basis negotiated, X/X our freight, initiatives so as we've efficient of had freight. 'XX, been to also from

to from how to are the stores. initiatives those of DCs, some we ports move DCs merchandise the our So from

as So of that's seen well. benefit we've lot where a

there's bit Going a freight of forward, stickiness cost. in so the

as year, a As this rail was you seen there -- we've strike.

salaries, So driver salaries wages truck up up. went rail gone have on

in of which our stickiness bit share domestic the a there's rate. lion's the freight freight, is So of

don't believe continue in that you, we're to expected back has we 'XX. but look what get remind see to pull FY of forward as ways can all this of on a year be we a to to the the going at freight been lot seeing that benefit the efficient we So rate freight, now as freight of point we'll at will forward. And just we this

coming in share So FY that 'XX. we're a seeing lion's of

internally. ways to with And so initiatives it's for for looking efficient again, be more FY about 'XX,

Paul Lejuez

John, merch rate. mix pure the on margin

John Klinger

Canada the division. merch see bit for Europe. up. a FX so did in we're Marmaxx benefit underlying the in of headwind But rates margin, We seeing was Marmaxx a and So

Ernie Herrman

I jump and another tell Home our think there I'll going is forward on have advantage where you we an in Paul, business. place merchandise as margin I'll well. in

percent and momentum tell above very that But the seen, you improved the could results, business, we've our have well. home I other be it our are every an John and opportunity So going out where because healthier is the to margin and departments grow to as within Home kind now the on anticipating have and next other then is us. we healthy. quarter in business home it see talked contrarian we're going of market. these margin a Marmaxx our marketplace. And our improving every for coming to divisions from think with based That marketplace comp the is bullish And HomeGoods specifically of we we of this can very very And and way of years, is total much some couple on, area the than as which is forward TJX. feel there's you business quarter. on about home as quarter. And of with a mix X just that that, the of over

think in merchandise TJX. I going help total to that's our margin

another margin So just in of that's directly. merchandise terms why bright that's spot

Operator

line the to Next, Barclays. from we'll Adrienne go of

Adrienne Yih-Tennant

and half. department a actually of realized their plan the that buying my I the for buying as the spring of we now report, being season had end question hearing next continuation between about wholesalers. a -- availability it hear first -- and it's down we kind the How environment? and do like channel seems the terms right is we're retail of for talked of this there's what's stores Ernie, kind I in and always great maybe guess you about of year think from disconnect on great. they kind know But wholesale

Ernie Herrman

we've because always Sure, there when the me. keep a were have [indiscernible] of Ironically, here -- as haven't different one We've Adrian. plethora then saying about know we call, ironic don't used I I continues put for has types world availability. different know, to retail surprised just that trends -- terms lot domestically instability more of this, and of up to is world and the push how in we awards, spill do lot companies around a I the of a X off a envelope would going these used with all we pleasantly they're on globally talking that is talked -- create clean companies, to that grow. It's off But that phenomenal cannot kind we sitting this the if of don't we're that part prepping trying used public they yesterday like yet. -- to back people getting in

can't ebbs this so And business. by one sales of one might how be the But so erratic I course season successfully. one just the always cut environment is And to And I'll understand I more. reason, -- back flows whatever there's which that key the there in always where in other multiple it the and seasons. able over and point, be projections picture vendor, e-com won't to more total, are with XX,XXX where vendors, go

over trends business because from trending apparel, especially little off months, about at we've that of talked the with Adrienne, think business, the where more the e-com this yourself e-com the but has been e-com just more the they're the group, the forecasts if have I -- in is Well, -- e-com some a spill-off. not So XX volatility before, is bit you created last fickle. in look way their e-com

some spill might going more more that's up vendors traditional on. brick-and-mortar what back the to I be than think So actually pull of able to

at tremendous availability. levels similar see just of I staying So it

John Klinger

vendors add every about of we have talked Ernie the importance thousands our And we vendors, with year.

that more So again, important we're just to marketplace. becoming the

Operator

to Matthew of line the Next, we'll JPMorgan. from go

Matthew Boss

quarter. on Congrats another nice

going So way the and a complemented Ernie, scale opportunity then, comps in share flow-through apparel by acceleration reach. And market and remain to multiyear drive historical demographic now pretax the forward? there relative maybe help continued to in strength puts John, speak to the consistent to elaborate across consider home, it's could maybe on takes is to were with if the you wider model just or margin the to

Ernie Herrman

Matt. great Yes, question,

brick-and-mortar scale I'll do Let done have in apparel, makes we the healthy the in share -- the not about. had go we me the model, specifically talking I'll because And pretty a what take which job apparel market let that at of have But -- good specifically some consistently other like, feel is competitors, us opportunity, there John a part. the then look to business and of that way also out you're again, apparel. it

plans the looking the pockets apparel which of We at which identifying way, aren't already market and used being from -- which and think, to. items season. country, our have take looked of us much have to we've the opportunities spring by anymore by in they for we serviced parts as share in competition areas started that the almost for -- the apparel as categories

terms opportunity in a after. we our is So categories, win-win I exact the skew we the to in a of but home objective, that's a categories, out continue by to a of handful exploit just bit there. the go Matt, so you that happened but the customer get categories of there, don't apparel But in want not to audience, to there's younger which way, give little our

online thing business that's neat other store apparel. as being of healthy is and department and store specialty because happening in The not

brands the key those SKUs doing us past. with interested in more additional than of in Some are more

able always but more keep to get treasure which do to in the that assortments brands our ability our we're wider had, also hunt and the business wider getting we're and of turns healthy. assortments helps some So there there, we've

So John, the... on

John Klinger

beyond to points again, all, get forecasting approximately say to And FY headwind. freight answer part XXX Matt, I'd of in margin. we're your pretax second so of very where 'XX your really, we're, that's to we're just to be with pleased we question, more profit were back of first basis

As in said we earlier probably I were. freight the we've back of X/X gotten call, from our where

We're and improve to really going complacent. of the our going profitability not that to to So versus again, strive to best FY going are our with margin forward, speaks is we always outsized performance way our improve controlling our the But our And 'XX. sales be merchandise profitability. costs. to

that of on it. part laser-focused we're So that's

Operator

of Next, the to Gordon we'll go Chuck from Haskett. line

Charles Grom

Just a October, some been talk in nationally, wondering in in warm. temperatures and sales quarter, the about of actually the cadence the if higher you particularly very bit pockets were guys

discernible far have November so slowdown Just there's And as any seen period. this demand curious temperatures that you've during time if in capture normalized. if

Ernie Herrman

of the cadence see September events August did are quarter, September strong bit earnings of our October our that a off the saw not end the down, only We remarks a But when morning. August the our in, our we're did also in return. a trends our the of said there, release, quarter we October, start, And the is and fourth from little when taking sales but towards we our saw as to place. geopolitical again, this trend drop set So our were -- weather the and I'll cooled strong in warmer add we trend. also weather prepared

Operator

to go we'll from line Sachs. Next, Goldman Brooke of the

Brooke Roach

happen you that to you traffic this forward? look Can ticket you with Did strategy And the elaborate growth shifts expectations? pricing ticket you successful your how in continue has on versus opportunity comp year-to-date. see any been your outlook much to for see more do quarter as versus between

John Klinger

as So by transactions. our driven as in so were sales we saw again, far what tickets,

drop in mix. see historically. As transactions, by again, units drop by our through way is driving a offset category. as drive ticket a important to healthy is we've expected, we thing -- ticket our did line that within related And offset that is us feel to It's business. again, top partially additional very mix for due But was seen we that the

So...

Ernie Herrman

you, We going there's and to good, We our a gain touch top-down driving we don't having good like go -- category be right don't strategy still we're values the drive at have John in into, to better, to ticket, levels mix. to the ticket -- And hot up are sales our started lower average saying drive the because merchandise happens -- it the average after right that better or on And priority top and said, and it manager could, is line. if translates these a are and mix, best it a market not hey, share they're Brook, to it I drive ticket these it. our think starts John a let don't and values we buyer, do. -- when our remind really the

feel In question, strategy. your in we we're like of a your terms on good the of pricing on second continuing part Yes, the that. place opportunity

combination I think consistent would there's monitor be. I potentially right that we we're so wary in we're it other as this of and environment positioned -- of at first into look retailers there's opportunity look with to we where as point. this would say much always a kind And will We think be going a next lot forward. go as promote. a would we are where goods -- quarter And of of year we we

to it, better, mark-on of So we grab again, time, the been seeing on get us appropriate. we same where the ability some we're actually we buy do continue and merchandise the have retail little At selective where where to margin but a benefit. that's very

say, balanced, good feeling we're always I watching about surgically. again, it, but and a So would very very, John?

John Klinger

of And their perception which very us are is, remains key. strong, again, look, customers that us telling our is value

Ernie Herrman

The get we on -- do surveys, and data perception. we

is Our their our values now to improved perception perception right on has others. -- of actually relative

Operator

Next, Alex Stanley. Morgan from to line the we'll of go

Alexandra Straton

below been a operating wanted focus all margin at to Congrats year almost to XX% guys. I Marmaxx, its on pre-COVID. slightly on about compared great that has quarter,

here? it peak? headwinds So do from think I'm we how about segment? you you that just do hurting still how about think that? wondering, Are at are there Or And

Ernie Herrman

year. traffic. on had to pleased we've mean the see I We this benefit -- comp driving mean, headwinds from were X supply freight. look, entirely seen nice But I yes, we're through -- look, we're we chain wage. a very about and continuing we've have

are, as -- we profit basis last feel good year. where pretax margin So up a far points we being as but XX versus really about

Operator

of to we'll Next, Michael line the go from Evercore ISI.

Unknown Analyst

comp on a comp. for maybe spoken the about year like SG&A of as follow-up. year? then SG&A next the we year this thoughts what labor or by with on largely on Congrats will on some some look that think about fourth us think kind quarter. you as year some But this point thoughts in leverage leverage help And SG&A defined go-forward growth the potential nice and upside quarter help flow-through side for is we Can about know year? I you've could of restoring that transition issues kind of then a maybe structural into I you and off have next on incentive

John Klinger

fourth the would out primarily I mean, increases planning completed haven't year, the we're saw that we as and we what as would that, that while process, say but that's payroll incentive from look unchanged incremental SG&A giving costs When would is would And accruals. expect. our I see so guidance, I we've would not this the that that's again, far year. due we we quarter we leverage point, store wage And expect we not what said. next and to higher for say

Unknown Analyst

you to some Marmaxx where business XXXX out But guess, moving don't XXXX of of structure And guess, get the I today, kind you cost differences we that maybe you you that's on you of back take told to about that -- at there's business, of and in in out in look look at expect that behind it the back. some thoughts have to HomeGoods kind a the these Alex's where see still margins freight now, as versus were if as you all for at levels. as us some you like structural know XXXX are still below freight of I get thinking or parts? opportunities come I question, do business, of you impacting lot still

John Klinger

mean, we've has cost freight structure, higher before as the is it said a I it's rate. look, --

HomeGoods similar. bit and impacted getting are and headwinds similar back So about we the payroll X/X when line. to when of we is freight it's the wage supply on be The going chain investments. a about talk only store freight, costs talk little more But again,

we're out, improvements really made looking drive And we've continuing line. the look, HomeGoods bottom So to to the on line that pleased focused year. throughout with we're bottom

Operator

Dana we'll go the to line Advisory from of Telsey Group. Next,

Dana Telsey

nice the Congratulations on results.

orders As we ordering this opportunity reduction for to on stores department share to brands going single in continue about as take from your digits. in accounts instances, wholesale spring to How down see down And hear a gain you other high merchandising you share? do some forward? you tailwind see do even better market

Ernie Herrman

as Dana, a important spot that the about I yes. The to reduction was ordering a more question say -- just there. merchant cutting of that about their where they similar most little to I little right a classic off right of talking them roller see what we Strategically, and and a even of and the to becoming brands. yes up their business. a think want would kind which don't back, a And in sweet earlier, I to -- spoke we're in it's they're look to ride, lot down us typically going way to with think of coaster

to there it positions balance think better, some I that so beneficial that's think because these neat script, And different of vendor. now around to also we many our our figuring the which been best, of out also good, post-COVID, that So us. And to for think the that off good figure since what mutually COVID, a lot -- indirectly. good a is are what's more We at figure of to to our see for great the buyers talks I were pockets buy And as a in think to touching but them to And to vendors a brands is really better we we of this work in way buyers our said even ever that many true right it was opportunities out prior allowed it mutually do actually what's we with this is vendors us. businesses, it with out and the teams are beneficial you're more reason ways. classic to where love how pockets of are kind it. happening on tailor in for work of and business those case

Dana Telsey

opportunities Do you Ernie? too, category new see

Ernie Herrman

Yes.

ones that I think not more been probably could of have or been. couple well, as new a they nearly -- have as big expanding

publicly, But don't competition, have there's new few see -- we is what driving seeing very been what -- is we helped a ones. obviously, yes, are always we're that to good. we're we've talk don't what had Dana, they're again, some really our announce we what probably because healthy. So comps seeing categories But so we now see

and in moving at terms them looking much more to even even them, staff how degree now we're. larger into a We -- are of how that's to just explode

I by can of get that those right business So get sales. a planning ones have right increases I are earlier to can think call, When all with. going really about as the ones more again, is the what And drive say in we it's right market explore team on are to we manner, teams stores more. that do coverage. stores families but the help of really and would it buying they're in what's buyers way, you're on category essential. about, we I our They the more store, little big up mentioned the the sure help the are the it a even and goods making the that the get these set We we talking now. It's a department, the that appropriately. stores the actually by driving

degree -- I'm impact to year. the So for nearly at doing, high categories going are to Again, X we're not already a or we level, us be can that huge ones next X have for up of drive. thinking but we

opportunities. big So

Operator

Markets. Next, to of the Simeon go from Capital BMO line we'll

Simeon Siegel

that. had about margins already pre-pandemic. HomeGoods those wanted Or I that those more e-com losing The wanted from so, if think wasn't were weren't confirm if was you called to the they it onetime? to HomeGoods I a clarify the the just impact nicely, volume? business costs, costs I I point, suggested costs former, were out, up an close they prior could. to pretty in excluding you but Because

expansion. to wanted case, just shouldn't is I the And check that underlying that. if on HomeGoods the margin maintain reason this So any

Ernie Herrman

with this our of a down. big business the we overall next don't shut homegoods.com be to were mainly I the associated costs cost year forget, was that moving business. not the portion forward, accretive. So would mean, would expect And that slightly

be yes, -- So pace that is, the it it would accretive. but

Simeon Siegel

between and from to is customers. -- again, traffic And then the hard on where segmenting on Ernie, customer any coming the do but views growth and returning new color traffic it's any general

Ernie Herrman

Yes, very broad.

about talk In fact, those. we

where So things balanced, diversified from we're how we've one been. is and traffic had about a broadly bullish it's income Obviously, of and the it's our very is and of groups to don't very age the X -- very percent growing a younger greater broad customers the know, we're with traffic. I years, guess, you'd how X happy I last, But recent over say. customer that

John Klinger

newer We our attracting business, customers to generally we're believe speaking.

Ernie Herrman

just were about asking think I you Which as well.

very all So the great balanced very but but were reflecting it's grown, -- by also demographics. it's a demos, barometer balance, in that group younger and income

Operator

line to the And we'll Sandler. today, question of go for from the Ed final Piper

Edward Yruma

them in love It have seems about you you've been think within vendors, that broadly you've has like just of for kind as that, focus guys category an off-price. hasn't given been traction. I seems called been explosions, there expanding footage kind like what with to opportunity of the like of that's relationship category those some would square making and beauty. the the been kind those It area some like of if historically of getting

Ernie Herrman

very This today. guys good example. are observations you and is Yes, that's with a full good. good merchant Ed, questions

that's store. very of the You strong changing in it, area, values and But its know, you've that et some what businesses new type see a typical an classic those is eclectic That obviously, probably price. a treasure we mix that have walked off around And And cetera. you -- it's few walk right? and and seen of fixturing, in can showing hunt. one not visibly happens situation show as we you do like we're if

so it. where are vendor are you of relationships on the we business Those touching go type And great. after really

others aggressively. very continue and/or that of buying we SKUs can about the after We have and looking well whole they're do that won't in couple within market, talk as we within others that to area go business, for have the well more. I to with the have the store teams really beauty always worked and items explode of because new family categories and/or

So I hope that answers your question, though.

take look -- is and of market brands, there's share how demand where we really can tremendous and one that We value in is have a lot we offer this and them. where

Operator

our today. And was question for that final

Ernie Herrman

care. all thank forward we our you. Everybody, And call joining Thank Ivy, earnings on take for Bye. in Okay. us you quarter today. you look fourth updating to February. again

John Klinger

you. Thank

Operator

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

You may for all thank all disconnect, and participating. you

The TJX Companies, Inc. (TJX) 15 Nov 232024 Q3 Earnings call transcript