TJX - Earnings call 4 2024 | The TJX Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to The TJX Companies Fourth Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded as of today, February 28, 2024.

I would now 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

Ivy. Thanks,

begin, Deb comments. we some has Before opening

Debra McConnell

risks morning. is about filings the being Thank subject results you, statements and actual our call among good and to are materially statements statements Ernie, results recorded to could from in Today's includes SEC. others, plans. the These with uncertainties identified vary the and that and these cause our including, forward-looking factors

full statements press website, our cautionary for harbor as the well in release the tjx.com. our forward-looking review Please statement Investors as a safe of included statements regarding section

foreign We international on have discuss. also release section detailed the today's reconciliations in along consolidated impact and our we of to and tjx.com, the measures Investors exchange of results press in our divisions with non-GAAP

it now to Thank over turn Ernie. you, and back I'll

Ernie Herrman

Good morning.

their on Joining global of all customers. to our center call XXXX. I their me day. focus by I hard truly excellent dedication associates in is and our today commitment fulfillment to start want work work Deb appreciate on for the and and to recognizing want associates TJX I to company their our distribution for our John. and continued their store, thank especially every

with overview to our the an results pleased quarter. of to extremely our very I am Now XXXX. fourth finish beginning with strong

transactions. share up geographies. customer fourth continue gaining strong in X% to earnings profitability of our entirely in it is per were by underscores and all our comp see quarter as growth sales a ability sales expectations. and Our share great market all Overall our exceeded driven to were This

Also, sales was very Marmaxx versus our businesses, third growth strong quarter and great our to I sales am pleased that comp and divisions. HomeGoods, international particularly continued Canadian at the accelerate see their it momentum. U.S.

assortments their and business. something this selections being values everyone we exciting believe a on gift-giving all our across of season. a excellent with are list, year-round holiday for gift-giving offer our retail and our customers for banners destination resonated as shoppers that We confident We our see opportunity

overall our company. Even $XX full to marking our the around of world. the still surpassed markets opportunities a year, continue billion, our For sales growth more we plenty in see exciting, milestone for

consolidated full earnings increased grew above comp our Profitability significantly digits, year, guidance year. increased and all the double per sales X%. initial share for the For well

divisions, Importantly, comp driven by our we across in of increases customer again, saw each growth sales transactions. all

are we confident gain that we operate We share that in market geography every in.

on world outstanding a execution the relentless their XXXX focus performance value to our our every customers and is to testament delivering sharp around associates of in excellent the Our talented day.

the ahead, good that of to attract is XXXX, in quality continues merchandise In first keep planned outstanding. we more our Looking quarter will initiatives stores. we driving to sales believe a marketplace branded to have the to many be Availability and off shoppers start.

in fresh spring to of are our to terrific stores this year. goods We a assortment online throughout the position continue and flowing and a

geographies, laser see many we increasing the of TJX. focused capture opportunities market profitability on term, and our we across share Longer are additional to

commitment years and to winning for to formula value retail to flexibility be We our many will are convinced that continue come. a

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

John Klinger

work. my Thanks, of gratitude associates want hard their I for global also continued add Ernie. to to all our

share some on the additional I'll Now details quarter. fourth

Investors a and extra section website. adjustments our I'm the extra the results impact which our results, on going XX-week quarter everything week excludes in Reconciliations speak of on fourth the recap on of week basis, other the and detailing quarter. in be release to found today's can to the I press As the

a billion, last grew to increase year. sales versus $XX.X net Adjusted X%

transactions. of entirely driven the But transactions we'll A increased as of quick sake we our in mentioned, that customer traffic. prior customer transactions plan note sales high the an above forward. for store Ernie were X%, customer clarity, on to As consolidated the and have use end increase calls, comp going customer referred by term

quarter, our In sales Back apparel consolidated increased the businesses. to in both home our fourth and comp the results.

of we performance sales for our In entirely categories. in the we division, divisional At every increases comp were terms sales comp strong to both also all note pleased quarter, home that and apparel fourth saw driven customer transactions. by at increases I see Marmaxx,

year. last pretax adjusted quarter was basis up points margin profit of XXX Fourth XX.X% versus

better Our higher and well margin. adjusted primarily our plan freight, above pretax on. lower shrink came This and merchandise due to a benefit from in profit a mark includes markdowns margin larger-than-expected

expense We above-plan leverage some also our sales. on saw

incremental up for versus margin by markdowns. year. costs. gross including and This lower from payroll strong accruals a store Adjusted higher and Fourth mark-on last benefit lower and incentive significant versus SG&A margin, points last XXX the merchandise driven costs was wage points fourth and basis a higher basis adjusted freight to primarily shrink increased quarter due XXX quarter was year,

income by quarter interest pretax profit XX benefited net basis fourth margin year. last versus Adjusted points adjusted

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

net XX-week fiscal to year. again, last extra for up comp week our mid-single-digit full basis, the store for both which our billion, our fiscal results. were the -- home going versus grew sales increases results, speak everything financial full Once sales consolidated year. driven sales to Now on in entirely businesses. to increase transactions. $XX.X X%, excludes to I'm Adjusted a year Full comp see apparel and very were 'XX a in We X% by pleased year the to customer

thank extremely our of to that throughout XX.X% the well the and pretax mark-on primarily laser were XXX on I last XX.X%, basis and all for was freight focused year margin the basis area points versus strong year's a margin who points by costs lower as all benefit an Adjusted year. recognize year's Shrink full gross last significant favorability. Adjusted XX.X%, as worked shrink was organization was adjusted versus X.X%. long. as up points driven from basis initiatives an XX year up XXX on associates of we want hard profit

line initiatives delivering experience very look this a a and customers. in-store remain to top strong shopping we managed focused for area We to going forward. pleasant continue while ways our and for our improve Importantly, shrink on providing

margin was benefited higher Full points XX.X%, basis wage up year XXX adjusted XX store to interest versus adjusted versus net XX.X%. income accruals. full last points pretax payroll SG&A last year. year's and Adjusted due basis primarily was costs incremental This year profit by and incentive

adjusted per Lastly, full earnings share were year up adjusted year's last XX% $X.XX. versus $X.XX,

Balance inventory versus inventory. X% to fiscal up sheet was Moving 'XX.

marketplace. availability in and the levels we We see are happy with plentiful our inventory the

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

flow through operating and in billion programs. For year, we the to our with in full dividend fiscal 'XX, In billion $X.X and $X.X year the generated buyback $X ended XX-week shareholders we cash. billion cash returned

it turn Ernie. back I'll Now to

Ernie Herrman

Thanks, John. year with I'll pick some it divisional full highlights. up

As our with a ability with saw transactions wide we and our the comp every customer increases customer driving our strong share delivered for strong to gaining believe across full sales, quarter year, division indicator businesses. underscores the increases the is this it market of continue demographic. we fourth Again,

exceeded very $XX well strong Marmaxx. Comp increased billion. X%. with Overall Beginning store sales sales a

increases year. X,XXX Marshalls income Maxx strong both surpassed Further, comp Marmaxx's saw sales regions categories, total demographics. and across consistently apparel and for stores. we comped home T.J. and also the We up

extremely profitability, we to pleased As segment XX.X%. to see full margin Marmaxx's profit to improved adjusted were year significantly

reported Sierra, new sales, very As our open same is online with look were which excited to customer we opportunities our pleased our we freshness with we drive At brands and grow excitement are to Marmaxx, see to -- base, and as the online do the At categories of added increase see in stores the the continued ahead, about profitability our we sales new that year stores. division. we deliver largest businesses, the and throughout we growth.

$X HomeGoods, comps grew sales and At to great to grew return nearly was positive home trends. sales X%. It see to the comp business annual billion

particularly high a across we the to and with second closer pleased performance profitability goal saw to we double-digit and acceleration half of division digits. sales margin. also Similar Marmaxx, to with returning to the our profit in HomeGoods the regions adjusted We significantly demographics. X.X% increasing consistent single improved saw this of income year, comp getting are

we fashions to home XX we HomeGoods term, combined exciting Long HomeSense mix United During across more eclectic a see the stores. consumers of and our even the opened potential year, to bring States.

was Moving segment of constant the the billion X%. home to apparel TJX $X and more we currency on With sales than one a were XX%. comp Canada. are year country. across retailers in XXX Canada, increased Full basis profit sales and store margin stores largest Adjusted

top a are value. seeking amazing destination for at branded We merchandise consumers

of X Canada to expand opportunities We attract to continue our to banners. new and across all shoppers footprint see our

Adjusted At constant were approached store and segment on profit TJX currency a margin X.X%. comp billion sales X%. Full International. sales basis year $X was up

markets. second in and apparel brick-and-mortar profitability open the related very other retailers delivered new strong a division's a many growth As reserve quarter, Europe, by stores our outperformed impacted German in we economy. growth, In COVID to to major government reminder, believe receivable. in difficult a a Australia sales was we this sales significantly continue

our forward, can on and in improving we that operate each division's profitability. banners highly we grow that confident are retail we are this in focused Going country

economic world confident continue Going positioned the well around we are kinds many that and am environments. of to forward, retail growth I our in and

characteristics key our business Let we me of remind the are that advantage. of tremendous briefly you believe

our is on relentless First item on focus every every day. great our shoppers value offering

means fashion, right combination as value us, always. quality and delivering the consumers price For brand, of

differentiated allows Second preferences. country model shopping the store is we the our to the quickly consumer distribution and allows in. the operate business that hottest a our to and to our flexibility in us hunt marketplace of globalness every of create business shift in trends us changing that experience react mix Further, buying, treasure to

operate customer a Third, stores we demographic. successfully across wide

of best of Our stores divisions and which our across a its appeal to the younger number future. ability customers affect range a of for shoppers allows outsized each of us Further, our attract outsized each differentiated mix good, we better broad bodes believe value-conscious stores, offer to income to to to number demographics. younger at of to well of an continue customers stores, an our merchandise

a vendors, ones. extremely are our XXXX, confident support we growth than XX,XXX than buyers from including of Next, marketplace more goods source more in of to is than In the enough our plans. inventory new more thousands that X,XXX universe there available

As by for store the our another we grow store we an believe global Fifth, can become attractive base growth our around current the banners least at to we appealing we existing X,XXX-plus term see their we to world. grow to them believe with opportunities continue even to stores top vendors more continue in offer as way our grow just we long business. line, We over our countries.

truly believe our knowledge I certainly depth TJX but is the and culture. of expertise exceptional our is longevity the off-price talent talent of Last, not least, within strong and and unmatched.

We our continue of our invest generation within the training to in company. and associates teaching to develop next leaders

which Finally, so major another of am believe key proud of our culture, I differentiator our is and I success. component a

Turning to corporate responsibility.

our the of Our and communities, on our company teams X work did business. each pillars: initiatives workplace, across in great responsible environment

Our report quarter. I progress efforts our last XXXX work, summarizes corporate and this as shared global responsibility within

associates, business Our our back impact ethically. the supporting mission and our operating to mitigate value on our helping our extends our environment in corporate communities, efforts, including responsibility giving

our stores, and partners to through than I'm our more And our running give States. pleased the work, associate in homes all associates in Through in foundations our people our to those need, funding in nominated be engaged to program, customers, campaigns TJX meals in X,XXX across career a million with continue our globe in participating more our coaches grant more. partners students supported helping fiscal and we within and dollar XX in through serving nonprofit this globally his than partnership United nonprofit share security. we states provided experiencing that for build for food organizations nonprofit XX including generous that grants XXXX, the

visit we communities, are learn just you some tjx.com to more. These and examples in our doing teams invite of to are our work

in are are we team's our we and in up, proud as Summing great performance enter position a XXXX. of very XXXX

profitability growth. year, we'll always, we beat as We combination our Longer to in this term, remain key I us We plans the continue drive well plenty to investing of and of strong are the in future sets our increased opportunities and of extremely share them. business that and history world. forward. successful committed our that remain additional up to believe market around strengths our to going growth our confident am convinced strive to support capture sales execution

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

John Klinger

Thanks Ernie. again,

to with our beginning fiscal guidance year. Now full 'XX the

X% a We growth in X% are X% increase fiscal be fiscal over in up to planning comp store 'XX. 'XX to sales overall comp

For full million be points to margin full to would profit billion. be in $XX.X year, $XX.X sales year pretax to 'XX This of XX.X%. consolidated the to flat basis XX.X% pretax margin of the the we range in of expect range fiscal be adjusted to versus We're planning profit up XX XX%.

gross full margin. year to Moving

it expect range of in XX% increase XX.X%, 'XX XX We as XX of a to to adjusted gross margin be point the basis XX.X%. versus to fiscal

this fiscal expect by both flat be We're higher to our a investments. by chain margin to offset increase shrink We planning be driven supply freight versus for partially merchandise 'XX. and

approximately to XX.X% year and year's full SG&A. flat adjusted expecting For to SG&A, last it we're be

a to impacted items costs year. million, about points. planning We're benefit and basis which by planning We're income incentive last costs be 'XX net us pretax fiscal of profit wage offset interest $XXX incremental payroll compensation full by negatively would delever XX from lower about that and store year

For currently year we're modeling of and XX.X% approximately assuming average purposes, share of shares. a count a billion tax X.XX weighted rate full

to we're these share adjusted increase per assumptions, we X% versus full earnings $X.XX. to $X.XX $X.XX. the per share range a This would year's of last expect in -- an to of be result As represent of X% earnings of year

Moving to quarter our guidance. first

X% comp We overall are sales to planning to store be growth up X%.

of pretax to consolidated quarter XX.X%, versus billion XX last margin in to billion. be range increase XX.X% be first points We're first of planning the expect to range of year. to to quarter We an XX $XX.X $XX.X the in basis sales profit

year's to lower Next, by expecting we costs approximately XX mark-on, to primarily XX to be year XX.X%, partially from first be last of quarter XX.X%. -- approximately merchandise and We're due offset includes year. of annualization expect margin SG&A first basis would which chain last points year an freight last higher a investments. favorable points supply last be gross increase This versus up basis the quarter versus margin

and We driven wage payroll costs. be primarily expect increase this to store incremental by

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

our last As XX% the first result to be a these assumptions, $X.XX. of to of $X.XX, -- up for to earnings we XX% in to quarter share per range expect versus year's earnings be $X.XX

fiscal on Moving our to 'XX plans. capital

be $X.X new our infrastructure stores, $X to to opening billion. to relocations support expenditures and This in capital of expect well includes growth. We the investments as remodels range billion as and in distribution our network

plan our we would new almost X,XXX For This stores. stores, new growth a which bring of about X%. add XXX store would stores, to represent about total net to year-end

add plan HomeGoods, us International, net Europe plans and XX we stores. net new In XX XX add to XX add X at net stores call the our TJX for stores. in Australia. In in U.S., plan to to Marmaxx at HomeSense we stores Canada, XX add At to and in XX stores we plan Sierra, including And stores. about stores,

relocate plan also and fiscal we 'XX. in remodel XXX about XX approximately to Lastly, stores stores

cash our As committed remain to our distribution fiscal plans, to shareholders. to 'XX returning we cash

press outlined of we As share. our today's by to we [ will release, our $X.XXX dividend Directors expect in increase ] XX% quarterly per Board

Additionally, to TJX in to of currently back $X.X buy we billion expect stock. billion fiscal $X 'XX,

comp X profit basis increase, to XX can beyond X flat believe margin to be up a our Looking on continue to 'XX, we that FY pretax points.

do foreign before, or for contemplate assumes expense factors outsized macro consumer Also, I've exchange assumptions volatility behavior. this our such events, As as said geopolitical headwinds. no plans not

and on increasing want I top laser-focused that profitability our our growing to plans. we strive will emphasize exceed line, to closing, In are

to while operationally the further and our of see financially we to in significant cash take advantage an returning are excellent business opportunities simultaneously our both We grow position, to shareholders.

Now take questions. happy your we to are

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

Operator

the first Lejuez Paul Our of from comes Instructions] question from Citigroup. [Operator line

Paul Lejuez

at about guidance have profit is you're this And what of I'm You've assumed do opportunity? got year, year? Where how the the curious margins but your overall thinking most each margin you the for in segments down? about segments news the are might that thinking how up, your then, which Ernie, are mean closure guidance, on Macy's yesterday, what guys? quick just comments the And opportunity, for you which you're having store

John Klinger

plans say Paul, the the Yes. to start we on have basis to that to confident we're in to off, this to going points X% increasing division, just very not to call, we're on comp. into by pleased execute be XX detail a them, and X% get we're

Ernie Herrman

the on with similar to Obviously, that a of up you is interesting, that the up, other about over This in talked store closure. of the lot little Macy's we years. Macy's have Yes. run. few some Paul, closures do closures, which the to last we've categories Yes. overlap store a the businesses the marry marry

market we So you're in. probably that the and and depending an I'm what getting guessing additional, categories would at. share think locations opportunity an would additional be it's on they're the

So it all have but again, XX any figure. always months of last that get looked we other not of similarly. we it we at that, of would the XX, not is closed, we've over that that that stores would and the get with -- we And what we some at look would

ship our back -- how in market closures for watch our is organization, I opportunity. they system then think able and affect or share allocation store we're the also and store, and capitalize Marmaxx that like on I to and in nearby and a the to and they I our because our trends a a HomeGoods like lot for to trend store teams, where look give enough give credit sophisticated to planning is of trends look

you're the to on less but like and that's importance not amidst for would keeps community with to rising asking byproduct I speak. brick-and-mortar closures all mention one the to vendor of indirect I store is to the things the know the call, competition, this, One so happening merchants our everyone

vendor buyers been ongoing one in of that forward order. is community. that importance the question a the to buy things I to But the little on continue So have that our will of look because there one yet an benefits of the better bit is probably we that And to allow margin a -- one we're not as the us hasn't the basis. merchandise opportunities, think

to I'd point question. So it's that closure I indirectly out. store thought the related

Operator

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

Brooke Roach

this this Ernie, about drivers you better or year as multiyear price of most as could little a the help the of merch you the margin. a increases, for contextualize the hoping merch that further on was on talked bit which you're do forecasting a already drivers well buying margin opportunity? expansion mark this that about expansion function see you opportunity is see markdown But could year of basis, you where I

Ernie Herrman

Brooke. you question, John, are Great. Yes. And going to...

John Klinger

see we in mean combination 'XX. favorability of markdown I a FY both and Yes. mark-on

see pleased we're to quite So that.

Ernie Herrman

even the and combination. out on can little vendor. is which the your would started get end there's our is on, component still that than I board, where buying I touch outstanding a because did think, clearly we as your, of the by merchants and the of the Also comes question in tell holding mention question more But linked What back. category guess, getting here I at I I is mention across goods script, we varies Brooke, on handle, the always, Paul's just better. it's for availability, I we're that, to there important to more mark with day, specific it with kind didn't is you, is a can control which most still

mix way it's manner, happened, them -- being season. past. that in season over after and now. a see that number and vendors so better work better brands but importance in thing. buyers continue straightforward even It's the like gain an happening a share buyers to been new is to our even continue more store I a is to them for placed think I this to more vendors handle the allowing And the to of with market are with they're our been to and than And very the our as buy is has just vendor courteous the years What been in the continue to more we that incentive community. eclectic they an want and

this And now. a years been over evolving has of obviously, number

good call we touched So feel the the better perspective. And we on over it few as of buying you there. the about years selectively a opportunity just still we've retails the on this then goods, lot appropriate, there's of adjusting to where feel from Again, on opportunity. used still think it, there's was retailing the mark on I started and we we last think

high a across are at Our the all the to that And on sales values perception store. responding momentum, brands. can very of the we you from as extremely value is level customers our in see our well have

So John I that's markdowns, mentioned the on the would -- one so you thing. tell

retailing think on better opportunity. buying of I exist and answers and both hope longer-term opportunities the still be because to continues that I think, again, midterm And that. goods. I mark

Operator

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

Matthew Boss

on quarter. another congrats And great

to margin like margin historical through a just It plan on is a sales prepandemic driven apparel number the do change on share exceeding and the of you home sounds any you see. start Ernie John, on and So about And margins by follow-up. of the but thinking how then just good the maybe, you cited? think positioned acquisition given that Ernie, customer in and comps holiday market your And spring, incremental in I incremental assortments opportunity side, transactions, there mean, could that the new with flow drivers, you with are elaborate through model? flow-through just now sales? walked

Ernie Herrman

question. one, new We've Matt, customer deal the happy. let's first very acquisition. been first, with Well, Yes, the is great which

It a bodes for we future. new we continue to -- skew little with continue to skew younger, what which skewing well we are the We wanted. customers, is

in that I the script. I also think mentioned

had talked out market we because customers we're what is and recently the that additional but we acquire one trying monster. are new think up customers, other existing is our is we meeting a XX% out visit also our of I share of trying get this customers, still of huge in about driver additional a and visits we only to of that could market our to, if One though, is create focus, hit

we So obviously customers for happy that where skewing yes, looking customers. are But we of they're new been happy the just with we've -- acquisition equally. new and and younger

are to have We on try increase to done visits. what bunch we challenged a this the had our coming And our marketing organization for -- -- team marketing thrilled their team, just year. with we I'm and creative has

of We with have marketing going I we're and across some and creative out. great the we recently brand. for couple messaging plans love division, had meetings a messaging every great each weeks where

are balanced and of customers. different the to appealing to those what here, talked balanced can remember that what appropriate some United of a cases, about is try in to in we we on geared we manner. We other so talk just I educating trade mentioned, demographics. messaging always really customers, our like messages really the get at to some I'd our that's point new you One And are A everyone new thing, encouraging. out And a to customer age very population on thing price this, in the is we've relative broadly. think, neat demographics are in very how about actually income for call really income States the we

we we are -- towards can at to categories, skew point retailers different now in as the actually over-index We're some the age XX where XX. not

with very So over the And stores, category then $XX,XXX, those to for bit We little we're $XXX. above well $XX,XXX I shopping our to over demographics, under $XX,XXX the more the slightly balanced on that. future. -- population $XX,XXX think income over and average bodes a we're which the really skew by

spent lot it. great So time a of on we Obviously, question.

the part... So second

John Klinger

Yes. what along. flow at, demographic, all in divisions. you our across consistent -- in as that it's far look we particularly yes, been bands I quarter say look the very performance sales I on when as that income saying with would demographic sales our fourth just the we was at very would U.S. say incremental the consistent But the through, income we've

We point don't the X% changed in we see the I think to that. And anything lever has comp, script. our somewhere said on X% as between

Ernie Herrman

And Matt, part question? what that Was about of last forward? about business? your Was it the was go the our home

Matthew Boss

opportunities. Yes, just

off to good a spring mentioned start. You

Just in into and the on home any apparel spring. your assortments elaborating

Ernie Herrman

home, said right. Their apparel at you had

I So tell country. -- think we were the not we of here beginning the you have that weather February, -- to though, yes. many not you, across know I did the of at with were we getting

our range. -- that first February in we So -- even were little though a back was it's the holding of comps in couple weeks guidance we of our

our we our comps. And -- were happier got were of weeks, much really then couple on, X the the stronger more with over the last last business when weather was normalized. we week From

So take still And it -- I would the that pretty when a good we start. weather were the affect is say we by off given but can this home up from don't pleased home would on your trending apparel, too QX. time business section, could where more business, as to that, to the I that's we're why way, I again, you, were want with tell our we you like And much tell but weather. our

whether goods you in massive in we business, of then we replenish. And the we a home really aspects we we way, else. this and it's that because competition have don't all And in are in we into home, home do our utilitarian items do what anybody I our the script, have share items of so steady some just the categories sell. market same year, than we fashion traffic as our differently We feel as that more the just that mentioned it customers increasing replenishment, where have opportunity because go spring

I'm such place that I -- that a not has talking all about home treasure opportunity terms over in HomeGoods. family area have special positioned. in I in home way the there. winners, it's -- also impulse in really is stores Marshalls think strong love it's team of continuing as and Marmaxx share about hunt and strong an we're a area . buying and is Canada, home isn't eclectic positioned talking really HomeGoods enter in So spring. Maxx And T.K. a And that the full business, just running just been just huge I'm been that way we the market

John Klinger

on add And Matt, I the as Yes. me sales let about flow-through. as was talking just far what incremental to

saying. point And past, we said as comp, basis again, every points. in in So XX the unchanged we've for what been it's from

Operator

Congrats again.

Lorraine line to Hutchinson we'll of the America. from Bank Next, go of

Lorraine Maikis

Ernie, price get still your how you for fiscal hoping pricing the outlook Do 'XX? will throughout your increases I also, see outlook factor AUR then opportunity like-for-like to for year. an mix in And total for assortment? was for this into

Ernie Herrman

Sure. on feel there, on No, No, like-for-like opportunity Lorraine. both still the pricing. there's we Yes. point

places assortment. not to it so throughout look but be at that the shop can -- It here it that. there's you And enough it isn't see sparingly specific store. price going doing we're we so surgically we be because we where -- could regularly, in our -- As it Again, would we a isn't we're the different and thing, throughout it's up items comp are there never notice buyers doing widespread opportunity so a -- there's good point.

because other inflation has see to they We just though coming can aren't had go and even have down moderated. retailers up,

the about all cost much the John out cost, time all there. in and embedded is So businesses I talk of

Yes. is is a the This this season thing. Lorraine, second a to or year real. that, -- then sorry, continue while. think I the I'm the going mix part was just And still isn't for So

Whith the Yes. mix related?

going our now after -- the don't in you been and don't plans we well. changing of as taking AUR, the to trending So of some categories the We've us our hotter that on we kind the going I much. are right fast the some the aren't. ones see after that move trends. very mix hottest mix. AUR you of down And know always is We -- always know,

go. one we that. much, in actually. always AURs like don't good of for we And categories now year We some see not plans maximize manage those they visibility at looking this that -- that not trying see, change But we changing we're do talk top right as still our won't much. the we So year. can to -- time, what this looks continuing We last the all is about top-down that's we were were our right now, looking that

Operator

we'll line go the Jay Sole Next, of UBS. from to

Jay Sole

smaller ask like I'd of the about maybe some to banners.

Trading your Just little next on really just in in U.S. about doing store color you a of And HomeSense, a you aren't is the times, doing, opening categories the on what Home also couple there's across us home talk Post? a do you market lot I've that said bit talk broadly But How doing well. that well. you can the are? that what HomeSense? more of year to script, just Can that's seeing this Post, Trading more you're because banner? And plans give Sierra open Sierra mentioned for on plan some

Ernie Herrman

Definitely.

We thing interesting. the make So on looking One tell stores. HomeSense is just adjustments you going mix. one at it's the John go I'm I'll to -- thing --

us similar just to voting. what customer this, we was allows is do teams saying and Just to with go to will Lorraine, our our model Again, are the experienced. where I

actually we fourth the and the in So are process started they quarter. in

those to modifying what's The and go big of team than that started strongly, our adjustments. haven't to has -- has that and HomeSense up that mix the we but have made some picked as more dramatically categories the shifting started trend now been since up trending other not shoring HomeSense been HomeSense are happening we in

we're Sierra way, our of is was strong, which these comp. sales So with both -- by there, trend we've in pretty last store situations where where year and the aggressive why on thrilled in heading been all

John Klinger

our with where call pleased we'll mean HomeSense in XX businesses seed stores with we're Australia seeing as adding we're also adding X their in that we're there. stores. pleased really in -- Yes. XX we're we're seeing them Sierra. what we're And very down adding what I We're well, stores

So with we're these the pleased quite performance really we're with what seeing businesses. of

Ernie Herrman

about businesses talk often, that's to we because the don't so get good. small [indiscernible]

Operator

John Next, Cowen. from we'll go TD to the of line Kernan

John Kernan

about outlook new new Excellent. as context about also think within And unit store real targets some Marmaxx store should ]. just the long-term stores? How you for the HomeGoods fiscal you open we Congrats trends in John, [ of on great growth a productivity and your availability guidance within within the estate talked and of holiday stores. 'XX. long-term the also

John Klinger

now, right the all the what to are us. -- across just It's And want stores make under see the so right almost our the we're for mean as as X,XXX we that we see unchanged. is what for potential. we -- opening sure availability, stores total I -- Yes. banners we that store just stores in as we far play

store when number going the So that that quite performance our sure at to We right shoot the necessarily fit for make And open. do we're they looking a not pleased within and we're number. stores pick then we're with mix.

pleased openings when quite with we as performance, we're well. that So these store see

that that we are other with The well gives really us do. relocations thing works us that the

here, as areas So actually leases. that in that as this store stores locations the year, far coming finding in And relocations. we're we're for we're trading due better planning XX are

able we're So pitch better to in shopping area. the to relocate the stores those

the we a see improvement in stores. we definite move performance So as do those

In stores Germany if opportunity our for the to we those relocations. of open also U.S. be and to department more stores we don't areas in to more see the close Europe, those that. department some have in -- see see the we we're U.K. areas Canada, the opportunity of more put -- up stores stores in we of in And as in to stores

store for there new growth. opportunities seeing we're So

what So that's strategy. kind seeing of the for we're

John Kernan

outside apparel, would follow-up I you spoke home, prior quite quick the guess other of Understood. be bit on just X about question. categories on a

the more in the elevated in-store What's like category? past. feels It within the that been elevation beauty. beauty than much about what has and of opportunity it's Just

Ernie Herrman

here, that. business Yes, big in healthy we're jump the very can obviously, obviously. from store I'll there, you And the you, in been Yes, see upside tell to we continuing that's And beauty the see is go would presentation John. for after I us.

the have We but expand presentation, seen assortments with well. you've as the something done

the one can a we has imagine, that's businesses you of feel as So lot more upside.

that If what beauty along of I know and categories along go of with that, other the you in thing, store, look mean. go wellness obviously if you that health with some at kind and things those

of the going trend I our beauty stores that but in would kind categories one just And after. love don't We are spills store more we've we're think over, other talked out, say, to noticeable you're do before. So is that this very about I some calling the that flexible. it we

out So beauty. you're bringing

One we've departments you the can is we probably thing the done flex around noticed thing beauty still the it. way

point redo and or Again, is the our are that when like HUD because store able that I'd the take business any doesn't stores advantage. it quickly, as very it always, able we're to walls, -- out, to much labor et as after aren't so capital an and cetera. planning the buyers there to to our And in organization, go in flex

So great question now.

Operator

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

Alexandra Straton

to wanted on quick HomeGoods here. I Perfect. focus the real

the just it a secondly, there. year I take So think what's market could ended of kind of on ability just and speak that long-term was time. And your XX% digits gets wondering low at goal share to then under to business you double if you margin. constraining over the when below

in forward? or any Just wondering to that changes landscape the enable Are color going on that going categories provide Yes. market you if could are particular there's

start I'll mean . I So off

Ernie Herrman

Yes.

on that of possible as continuing freight The on and be freight I growth, to it's impacted efficient about line was of be we freight that at for line. divisions. a as structure as while Goods, the continuing efficient by executes drive with HomeGoods to top more drive the and well, very, HomeGoods as and very focus to continuing mean line execution, some But cost Home other team couple I of it's So top sales than things. that just looking it's well, to that try can. about mean HomeGoods,

John Klinger

the you're market there. to Alex, about have strongly growth that also look share and margin believe asking that going is that's when one opportunity sales of things the And you with the help we we if

If -- the there half. at the sales QX, year see relative you you that to And half as HomeGoods, first you second look trend HomeGoods how to went you had we could at if competition. dramatic then in powerful even to look is

really had ago, and so years dramatically yes, outpacing goods but business trends it's And we'd whole be unusual an as we've home when competition, years. strong the recently. for thing home as not Typically,

well as is execution their going And the creating just e-com because are of third so you I market think, fortunately, part the in the what's business question, home I think, brick-and-mortar excitement. is for share that you opportunity the really for market like the landscape have home additional the as shows on, your is, share, which up players a of of lack on And our and that grabs.

even know bed a for of and had though in than of doing segments It's believe seen any most hundred planet, home you just shopping become pillow. like shows on experiences a of out TikTok spend -- because the do the you people you've bit cult a go couple exciting that on We lately. HomeGoods dollars, a come that whether is our it with goods the on look we really. talk believe can't different store a Marmaxx, -- become or third-party there it's you're less of one planning And endorsements on and on

So bullish. that's it's -- why we're so

one it's corporately, of most our also collaborative We arenas.

bullish our will over you the merchants we're up as all is organizations, total which, we've TJX we are be a the year, few X/X on Our next talked years, know, across in home what higher heading business believe. linked past, so Home that's why in TJX business percentage home of the business which this to over

So TJX. you're touching think to what for a and be on future it, I advantage continuing driver traffic competitive is

Operator

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

Unknown Analyst

about the when look, to I looking are are today, on going a stores. margins. you've little but see we're the want the on up, guys and saying, close economics it profitability a at little remarkable few bit know putting competitors great Congrats to it's stores going I particularly bit talked a quarter. a the way, are ask just and to you other

flat X% X% sales business a at I in flat this Something Marmaxx So this as with didn't or is on to is flat COVID But to Marmaxx, long there peak you point a to and XX% year XX flex normalizes its to mention this comp business structurally is any it's algo. to XXXX did why points are XX% a you have above year growth term, then now reasons XX was we chain about next now in -- same-store a X% little better basis then that leverage that higher stabilizing to long-term you the X% follow-up, And guess John, as is labor earlier lever levels? it and think or or given bit XX% year. have that the you before and pricing really sorry, a have basis supply a margin

we the if a to reason of it that the above of the running again basis wouldn't at you point you're and comp X% middle to mentioned? out X% any rate through XX year get than the And better a points on flow

Ernie Herrman

I'll up first. so last -- your Yes, we pick mean I headwind. of question onetime Yes. part had the some

see we year pressure. the that or helped it's accruals negatively wage to impacted incentive us last continued whether us offset that So homegoods.com what as

were be Does sense? make to able X%. So XX% flat that a to to at X% we X% a to X% versus up on

Unknown Analyst

flow-through it this margin is a on also the the is point upside? profile? Or it -- of in does, though same year, In still this yes. it different Yes, does year,

Ernie Herrman

And I mean, points then of That's up though Marmaxx that were. points. comp the lot XXX to during is a Even where improvement as opportunity. XX 'XX, pretax it year, huge in had XXX the again, we points a off basis profit. rates. to FY true still every FY basis back has And well we're freight Yes. freight basis with, goes, holds far do not was obviously, lower where XX.X% we for in of 'XX a as point as

we to the particularly look work for all we And we've because of freight how been we we continue the headwind. rail had able for offset we've But where on has the again, merchandise to just to our see the past, back that this the wage through domestic -- freight, be in it's people don't of are that more that freight, really talked looking opportunity -- forward. ways the to on move margin we've we way efficient about and in trucks. increases that's whether to in some come or seen So anticipate moving

merchandise But we the about driving about again, -- buying. through it's execution, strong with again, Marmaxx, to similar better that to top margin it's that improve and continuing when HomeGoods, line talk

Operator

for final question, And Shapiro go Retail from Tracker. our to the we'll of Marni line

Marni Shapiro

you there an matter addicted, need card there? not everyone's an just don't they Or I've opportunity want Congrats or loyalty? data that opportunity little as a a to cards? year. there a I a Is bit to so percentage talk Is helpful you? does own been you this on asked. there lately if really because lot your into a me your business. been the that of talk fantastic part of about curious X credit to smaller do store dig card, been business what need your a Is has I'm capture -- do And you a It's my a credit we about. have of Could your bit? questions Can physical some business actually business addiction? in stores, guys just credit into usually your part don't because want asking it's little dig not I've is had I to something loyalty associates done on of

Ernie Herrman

Yes.

and day card, use waiting value value, the to the high is want on penetration some card. on As use through the offer credit don't that other not But our train to retailers our goes, amount get far the our don't incentives is discount that everyday we this a credit into our goes our as credit we as customers say card to card. will the everyday I that of as it's into

focused our itself the making So model we're sure on not highly -- the for affected. is that messaging

get being credit That the -- into they it coupons that get. said, customers way back is use that can volume drives the they the When and our stores. one card, back

as that the it It let's to with retailers or -- customers some of but the heavily the that it's impact delinquencies see much our customers reduced rely fees definitely on they our So it. more so reports will much face late us, for that positive about the other a driving when credit but the get as coupon, whether And they card. read stores. everybody's -- potential pleases we for not the back as having

Marni Shapiro

Is of would there's would with I guys there to grow that customers. penetration? some level visitation think that an those probably to increased you and Is something Because loyalty do? opportunity look

Ernie Herrman

So, a Marni, that just penetration of or -- we years have number growing so. over been

yes. much as -- as So

were almost As their higher -- we what other much their their a not amount John as card handful doing at but credit programs, years we're -- of out, we than pointed ago. are retailers

also so. our Rightfully shop tend more. brands John those retain right, and different And So, yes. shoppers, cross more to

us, benefits only And to a when extra of of our as it that way so said, does and from they is it do, create the and type a any lot there's in rebate visit. John sales, get

call still So to get last percentage. All forward still updating right. you you're Thank was asked again joining why And the in -- right. we to by that's store. on today. trying question. you in Thank you, you for all grow think our yes, May. way, look everybody. the that quarter us We're our that earnings I We first Well,

Operator

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

this thank You at may you for time, and participating. disconnect

The TJX Companies, Inc. (TJX) 28 Feb 242024 Q4 Earnings call transcript