The TJX Companies, Inc. (TJX) 22 May 242025 Q1 Earnings call transcript

Company Profile

Participants

Ernie Herrman	executive
Debra McConnell	executive
John Klinger	executive
Matthew Boss	analyst
Lorraine Maikis	analyst
Brooke Roach	analyst
Irwin Boruchow	analyst
Paul Lejuez	analyst
Adrienne Yih-Tennant	analyst
Jay Sole	analyst
Aneesha Sherman	analyst
Laura Champine	analyst
Dana Telsey	analyst
Marni Shapiro	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the TJX Companies First Quarter Fiscal 2025 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded, May 22, 2024. The I would like to turn the conference call over to Mr. Ernie Herrman, Chief Executive Officer and President of TJX Companies, Inc. sir. ahead, go Please

Ernie Herrman

Cordi. 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.

on customers. especially Joining across associates our of call store and for the value me thanking of center work I delivering commitment TJX company. distribution is recognize global by start our and want associates to I Deb fulfillment great the want our and to to the all hard for ongoing their John. to

Now to and first quarter update our results. business

end X%, I Overall, comp up indicator the customer by quarter this am an first at see this as which business. the plan. our strength performance. excellent was of was pleased the were sales very entirely driven Again, store with of high quarter, of increase our comp transactions. our We

earnings plans, profit pretax and which see. both per to above came terrific profitability, quarter margin first to was in share As well our

in to this outperformance moment. a drivers of talk will the John profit

shoppers day. who our the to every sharp item focused every a of first Our are on quarter on our offering value results teams excellent testament execution

consumers model. quarter, of looking store results were our flexed benefits many for. into leaned flexible the our Our categories Throughout that highlight the business assortments and we also

driving focused Further, buying, disciplined and we on expenses and managing in profitability. inventory remain remain our

value great Looking confidence us TJX. ahead, leadership our in in gives retail

about excited we our see a the off for good is are quarter start, business. to second opportunities The and we

capitalize outstanding happy marketplace. We opportunities on we the are that our are very and inventory the levels to buying in position with great in see

We the TJX. spring throughout our and summer that positioned our gain world term, to market plan and Longer we of the to our profitability are stores we and geographies convinced share global around remain fresh grow to flow online, well increase assortments and footprint, year. the in the

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

John Klinger

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

versus some the year. share quarter additional on details last first Now I'll

the our Ernie consolidated mentioned, our and was was XX transactions. apparel. our Pretax Comps customer and comp driven apparel in at points. basis As plan was with increased both home up outperforming categories high entirely profit margin home end XX.X%, of by

larger-than-expected basis XX plan, driven higher basis mark-on, from XX and by increased income. partially incremental payroll points and This due costs, was release. chain timing capitalized a points offset of the was costs and was to inventory a investments. cost primarily This Gross from and favorable lower above freight net interest reserve to lower due supply wage partially a benefit up freight store SG&A the costs, basis our points. release XXX benefit by margin reserve by offset

pretax benefited income interest XX Net profit by basis points. margin

profitability tax lower-than-expected above share our our $X.XX. pretax up plan outperformance were a and earnings diluted rate were quarter due Lastly, by per to XX%. was we per pleased share benefited first that This diluted earnings that very well

proposition. indicator of all divisional again our quarter performance. our of strength such comp were driven Across first to divisions, entirely value our increases is which by great customer Now our transactions, a the

saw in positive both sales at pleased areas X% and some weather, periods apparel. below stores Marmaxx's XX home to sales up basis comp very home store of $XXX,XXX. points. XX.X%, profit comp Marmaxx, increases comp segment sales and categories was see demographic with were unfavorable above At store average Despite Further, incomes with increased apparel outperforming margin we and household

at of shopping with sites their improvement U.S. this XXX HomeGoods increased significantly HomeSense last we which a and were fashions. differentiated our was customers point performance. offer store home as This happy X% segment and experience we part profit Sierra, division, report strong comp X.X%. HomeGoods e-commerce to margin basis and grew versus At for sales year. sales a

eclectic the and decor. around home ways customers affordable Our upgrade world to buyers source their to selections products from bring

and XX.X%, international Europe constant margin International, Moving divisions. profit increased margin a XXX X.X%, points. segment store up currency Canada, basis to comp and our to Australia. XXX points. basis constant TJX on At X% on both a were basis TJX sales basis was X% were up improved currency profit in Segment up up sales and store significantly comp At

most performing believe major than retailers and We better are other we Europe. Canada in

value-seeking for and We Canada, are will Europe to confident a customers leading be we Australia. shopping in destination continue

the sheet quarter down inventory versus inventory. of the our Balance X% by was Moving last per-store first at inventory and centers. was distribution a on lower Inventory driven year. to down X% basis

Importantly, are year's in-store take marketplace. levels. and of availability outstanding position our inventory in levels great was the in are in great seeing advantage about inventory to we We line feel a with last the

cash growth very generating in and dividend the and we to strong of our business through start shareholders were pleased year capital cash to flow, our As to returning programs. our buyback reinvesting another allocation,

Now Ernie. I'll return back it to

Ernie Herrman

confidence the TJX. like I'd reasons we to the have for opportunities growth highlight and in John. long-term great near- Thanks,

We of always value long record well. us retail a track through and our has many success environments, kinds served of have and proposition macro

off-price we long and our the around a exciting of believe geographies are flexible runway Our I world. resilient growth for extremely up in and model set business is

reach. merchandise of customer good, broad we wide of groups. flexibility First range our age income is everyone. assortments buying, With a opportunistic demographic and want shoppers to our We offer across best for better and expansive sell and

when future which stores, shoppers our we together. our multiple we stores We Z see our to believe generations continue shopping great well and Gen bodes for new really to It's attract millennial growth.

are we and across the that share market Australia. Europe opportunities Second, U.S., significant convinced remain Canada,

store expand by our another current countries see our long stores to the existing in least potential our footprint Over banners alone. with retail term, further at we X,XXX-plus

Third, X,XXX universe vendors our from buyers XXX of global from than available that support a there branded we to over sourcing more XX,XXX confident be are of countries, with and merchandise us than more to quality our growth plans. will plenty

has an Throughout history, availability of issue. been our inventory never

keeps fact, experience our better for In we and additional vendors We've hunt ways have grow look seen fuels thousands which years, the store even assortment opened shopping their availability in become fresh vendors, customers. to treasure as of our differentiated new for businesses. recent

frequently receive branded With see excite to assortment, each our fresh of Our to deliveries surprise multiple week inspired changing stores and new. visit us rapidly merchandise are what's our to shoppers customers.

most associates who importantly, the exceptional and are do job an our Lastly executing talented on initiatives.

off-price expertise truly within is the and of organization I believe knowledge our unmatched. level

business, highly a we the have specialized talent support global differentiated to We and developed teams and have it.

We of off-price have decades leaders across many experience. TJX with

the focus our Additionally, generation we and within leaders newer developing organization. of next on associates

pride training TJX great take We in other our University programs. and

between and teams and us Our geographies the very needed. deep bench ability to divisions where to deploy rotate gives talent

for our strengthens TJX. growth culture, our believe for we component of company is this advantage is of key goals tremendous which our a and and All success. of very pursue a another I proud differentiator I our am also major as

culture, terrific associates making share For I'll responsibility more which a our TJX our work. to includes supporting our and about corporate place update,

which Our support and life associates we and foster they we develop associates feel is bring TJX, A and valued strive where welcome, both training. priority our business at key grow workplace to engaged. to our and formal informal through helping

committees diversity Our role important inclusion associate in played resource groups, or ARGs, and an workplace. have inclusive and creating our an

Within them continued the number of the grow. the both and last ARGs number year, participating to associates in have of

about can more read work our always, responsibility tjx.com. you corporate As on

marketing are the to the quarter the our business with of very great opportunities the overall market of we good a up, see that environment emphasize today's feel we'll extremely confident proposition the there. we We TJX off am share up performance well about consumer second our Summing us start. to to in that that through quarter I Longer continue to term, our pleased initiatives. on capitalize and positioning characteristics first value and our set out in is consumers

that TJX complacent to increase to are to further profitability and looking ways committed I over we be the of long reiterate will not Lastly, term. the at want

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

John Klinger

to Thanks to guidance of due fiscal consolidated of again, the Ernie. year 'XX This than $XX.X the billion. our is previous range full $XX.X guidance. I'll our with million foreign exchange. about lower planning start billion be now impact We're in $XXX to sales

margin range increasing guidance store sales to increase of expect to to XX.X%. XX% to pretax comp continue our X%. a to profit We overall We're X%

to points XX adjusted up XX be This would year's last versus XX.X%. basis

XX% year's adjusted in XX expect to XX.X%. last of to margin gross basis to continue to XX XX.X%, be We range versus point a increase the to

We driven by margin, expect plan this investments, to shrink be benefit includes partially by supply increase to a continue versus higher offset flat year. be a our we small to freight, from which chain last merchandise

costs be XX.X%, by to incentive to wage We're be and costs and flat adjusted We continue offset payroll approximately compensation to expect SG&A year's SG&A. lower planning to store last incremental margin. now a pretax a our benefit million, last from of neutral impacted items assuming on about negatively interest impact net profit year. We're have which that us will income $XXX year-over-year

approximately of assumes billion and XX.X% weighted guidance X.XX share rate Our of shares. full year a a count tax average

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

sales freight flat range to billion consolidated up second sales profit $XX.X overall This margin. X%, year a year. the billion our last to be merchandise in supply be XX of store to X% guidance. XX.X%, versus to margin to Gross XX by pretax expecting basis the be $XX.X last in approximately margin We're of increase be year. in chain decrease to to a XX.X%. is in accrual be lapping would points the last investments, to range an XX.X% quarter to up benefit points of due primarily to Moving significant of comp offset This basis partially versus

the basis costs. write-off This is primarily reserve from related by offset due SG&A decrease a of wage Partially last COVID a incremental a XX payroll year. year. program versus and to accruals store a of to receivable be incentive higher German lapping last and to points XX.X%, benefit approximately

tax quarter shares. $X.XX of a about to a expecting Our interest count share $X.XX, be assumes billion of of diluted $X.XX. quarter and share income $XX also on year's we're X.XX last Based in guidance second up these assumptions, million, X% versus per X% to rate of second approximately XX.X% earnings range net average the weighted to

year the Pretax in sales that of our half earnings per up to profit X% our will XX.X% of overall margin that $X.XX. comp significant be assumes returning XX.X% in financial growth to store continue to range company Lastly, of will for range closing, share cash X%. guidance implied the the second position emphasize will In and be $X.XX in be I shareholders. simultaneously an to to we excellent to invest the in want to while are of our the

take questions. happy are to we Now your

so As person can can. and per up a to we'll open please reminder, as Thanks, we questions as limit now your questions. answer many to it one questions we

Operator

first [Operator comes from Instructions] Boss JPMorgan. Matthew question Our from

Matthew Boss

another on congrats nice And quarter.

term, continued market both of cited? for seen in home structural to you've buying margins in confidence think in then, front runway, So And gains here that you speaking discussed? about drivers momentum just best any and maybe on multiyear, your that you share of how on just multiyear change elaborate merchandise the the the just apparel changes near May? across runway Ernie, the given And John, gains have you could business

Ernie Herrman

So which balanced you retailers which pretty Matt, about you wasn't more But we total than let information board. across any quarter, of weather tell was other me driving and we start. category-specific talking don't and the one that planned and driving I on give It thing the the was Well, any we're one categories -- little hit can obviously, kind it. comps. on it. pattern probably a it from about our on area one off read that a heard about during bit an of We did thing, feel was

of So in anyone apparel type patterns but in layers impact ended those to does up our terms or us tends apparel case, for the traffic just healthy it areas can of our else impact like what in quarter.

again, the apparel, accessories, -- home I we would in question line whether it the in of was specifics the I the about on can't So was quarter. was your been kind way have it of think thought The part everything for the and with second you confidence -- categories. give

guess, in Matt us second? about going we're what part future, gives I continue am confidence this. to I on The drive is how on And the to right, getting the right, question, second of that the

Matthew Boss

Yes.

just Continued you drivers any of Have market share change? business gains and seen momentum.

Ernie Herrman

oriented momentum Yes. see lot really and it's of No, I that are and right hunt before, to better, really creating the good, retailers, is of of remember, the level I last other entertainment know, in take is other broadly we and this together I all that where the what the range because and now I and of think we've all trading consistent quality excitement few don't -- hunt our brands treasure And so as best this us able been best, age good, all of talking only know retailer we put the they're level a groups, about a treasure fashion retailer format, brick-and-mortar confidence are. is having better, I'm about with any that talked that is Matt, and income months. this whereas gives

so in differentiated environment. is And this extremely that

inventories well us. you know, That off They've of business for to as and we're spill of us, of full-line Fortunately the as as the has some across take those, been players. flex some those of vertical supplier e-com for the had a goods. of advantage excess extra inventory able as the players

middle were to availability which COVID, always, in we we pre-COVID. the to becoming vendors propel As more and more are to we now of see important -- because us continue has important our

Now a thing us with vendors of to the figured past. to neat different And believe, in I more at than our with the ways consistently have that importance is we're level, the vendors. out work even

reasons question, as value right -- So as I you the just way, happened place the it as bullish. so mean we your another a become have why encompasses the all leadership really I'm to shop. we're here, can imagine, that's it's now. on And we cooler by thing positioning going

So gift-giving-oriented us other long. are more giving thing the is confidence now we year all

starting strong get and it's consumer gift we're us whether we've a traffic a for at fourth So to coming quarters. holiday, greater now to for giving, delivered

that -- Father's periods, Day, Day, the in place giving. whereas don't I were people XX we time X even with gifts years But know, Day, of other Mother's comfortable maybe weren't handful the Valentine's ago, on a percent

give think confidence could we're for on the think I So to of answer. why keep here. the but long-winded sorry I continue going I going, a that's to trajectory enough you healthy

Matthew Boss

Yes.

Ernie Herrman

leave I did John, anything for you?

John Klinger

No.

I think right now.

Ernie Herrman

you No, had. but I think

John Klinger

have What for me, think Ernie answered question was might it. the Matt? I

Matthew Boss

just multiyear Runway merchandise front. structural the made with changes that you buying margins, the given on

John Klinger

to back me probably. That's

Ernie Herrman

you Matt, just back know, at me. John wanted is to I looking

Wow, that. -- touch just we say to the on So started I

well to pricing a healthy So go as better. we believe margin, as you prices our and happened to as what's can merchandise just see still there's the delivered, buy we opportunity in as from we is raise continue our forward selectively

fronts and you tell measure us better team, in our us goods we terms regularly the on tell being winning a to in marketing offer XX-XX of one continues our as customer the that perception our than now. they of It's overall competition with on values tell consumers the really stronger value I through our our what is would surveys show business. have retailing to and both you, teams We're of kind perception right buying that

perceive competition. the excellent believe a power. Hopefully, buyers that on in our strong answers versus pulse true margin that leverage keeping values buying us monitoring at and are retails question, our always always which extremely to where pricing are we're looking to at monitoring So numbers, ability which our merchandise that, to addition the but the our that. I competition, gives customers to your relative continue to as our our a I

Matthew Boss

Great color. Best of luck.

Operator

Our Lorraine from Bank comes Hutchinson next America. of from question

Lorraine Maikis

a demographic? you My customer still question seeing are a down of to banners? is trade signs around higher new Are increased from And the customer income of acquisition. younger you any attracting all

Ernie Herrman

attract to what younger second sorry, we've I'm of skewing well Yes, Lorraine, a last question? more so was the are continue age -- customers was as as seen what of we your And the part quarters. for do to new that number

Lorraine Maikis

Signs of down. trade

John Klinger

trade no. the Oh, down,

hard we said lower for isn't But specific But the card are data bit more in seeing, our Like below stores and because now $XXX,XXX. both the us it a was strong skewed again, customer. to -- this as income look positive what point, it again, call, above of we sales They So we're we see are credit by quarter, customer little seeing retailers. $XXX,XXX. that both that penetrated as that it's were don't at sides towards other on we when -- in demographics. different our

Ernie Herrman

would that have the and again, is it customers, healthy for good, in on the way jump the we I beginning been trade pretty younger the age demos, better, we we on of we we us, group believe been are as saying, like best is and talked more things also just groups in we income John the the one track Lorraine, where to of also balanced. about age appealing -- to what's great is

also, know, not pendulum group to emphasis So because have demographics. has appeal we drive planting we seeds, try been vote, we same any as and to much to you At don't the and age -- desired customers. want customers want a to we many time, age to swing our across customer the as the younger on as as income younger

we're across I best -- would income. a always we can it, that balance, you pulse having keeping know call as on and on you guess, age measuring once though So a

Operator

question comes from Goldman Roach Brooke from Sachs. next Our

Brooke Roach

in the momentum home and market aggregate. for the speak and you Can segment in segment capture home to outlook your further share goods

that last continue biggest in the trends further see comp begin do where profit and you gains you you think momentum? do opportunity for from you margin sales can step-up improvement? And As year, and in cycle to the the

John Klinger

Yes. I'll with this start Yes. question, Brooke.

let's at stack first history, been So we choppy normalization. on thing our when of quarter. guided forward, to large more you note as a going of fourth at of out X-year basis, is towards a we somewhat it's look all, have COVID, you when came that But look the the say, we've comps do one if a

last you very a pre is versus look FY'XX that our our they see quarter-to-quarter. COVID, which year, stack are on when at But comps base you'll consistent

seeing we're grow growth, healthy The our It's other top line. your way through healthy. transaction sales growth is a is thing very to which

gives that lot confidence appealing to up new still a that, to us us. lot again, still we're So customers a customers of are picking that of

So for us forward X% confidence to, the year. we about that be to the the the comp gives again, confident of remainder going have X%

Ernie Herrman

way ups very all I know, we future. the share period. at we slowdown, think, as John inconsistent cetera, downs the rid to this And big noise healthy where and volume Brooke, well the rates lot you and time and bodes I continued pre-COVID happened at et And of there's look you get our was upheaval have a with opportunity picture all -- comps, think that industry, averaged whether in had and and I look market when now the that the you of housing think reiterating though. interest that has said, for results what which

where to the flex more flexible categories we're goods And in as you board we able we're others to don't business whether it to sense, everywhere. been the out is Obviously, our this the model into across is as in home as home take the rather industry, industry soft and happy, comes the able demand see But more has furniture we're the what there. action a happening. or hard The flex is business hit in reason can it's the that -- place.

where the are going we've things in there driving goods. well other they as doing been after As is repeat traffic home the thing consumables,

market and the we're So get think continue continue that's specific into another place we I to those I But share. think it's going in we'll gain won't to categories. place,

Operator

Boruchow Fargo. next Wells comes from Ike from question Our

Irwin Boruchow

you're year. frame But you or in question, margin wanted comp the on of in I I'll it becoming I and talk like assume to look the more the about the solid competitive guess going if Goods as a you you business space, not margin. as bit recovery I I rest high-level what specifics thinking on the balance guess tougher us out furniture the kind as to or Home little like to how either it's business. give a of kind just about of are against seems furnishings the outlook

you to If that's on guidance, give want specifics also okay.

Ernie Herrman

you. It's very nice of

John Klinger

confident and other big-ticket we're other HomeGoods. home put Marmaxx that's in store, business will in we a talked things of customer and both think reason That items. maybe decor replenishment our to that Ernie outside increased & times, divisions. I the we've home, Home they are when they're else cart. in about in and And in as the in lot Look, come they HomeGoods gives that to the of their find HomeGoods a things can our

So giving stores driving our line. the customers top more reasons is to shop that us to all key a of

Ernie Herrman

downs in even see might you think been incremental not have the moment. and on ups I in But these go we're times talking was they about where at we quarters more where ago, and you thought at we what's kind come And of the environment, X then improvement think ago, little long I were and we've with not now remember, perfect. Yes. it given a we've we line picture going in don't making exceeded it bit can exceeding and

and is where we else and fashion impulse But home always utilitarian as forward nature different just driven going concerned than over we everybody where the to we're I'm move about have the model goods, be the months. of X that and not next so faith

Operator

from Our next question Citigroup. from comes Lejuez Paul

Paul Lejuez

characterize in whether IMUs just within better, within you've opportunities good, how maybe And and good, where you're better now. best any and and that the better in you're you seeing about second, playing then for that Can seen competition you talk the deals curious best? changes promotional the deals landscape

Ernie Herrman

Paul. Sure,

be of Is at with level us. the on that? retailers could you're So kind about vendor other deals, the market for competing talking competition

Paul Lejuez

deals. Overall. Look Correct. at the Yes.

Ernie Herrman

first And this of there's if of know competition. that's ironically, only all, yes, thing is happened don't The are that extremely trained. Yes, buyers enough. I our well course, I say

is Our get the to easy on value, they to is right do. demanding their with you have respectful be part training courteous deal and what price which be to and of to be

fact they Now brick-and-mortar where market in has, with has a the as the the you are you amount take terms know, that stores. that training and all consolidated bit of of

more we that very to They're have of mix even grow team in to They And that's hang than ever more so even part They're and more want have cash reasons versus be continued a very even stores now assorted and company they more brick-and-mortar buying sell with us best. our to ever we'll more goods with paying. our vendors, the straightforward before. store others a than eclectic and hang dealing because has before. their a so

So has like competition always there, the competition is been there.

to even probably deal today are thousands would sure -- But they've I'm than sell vendors. the vendors. you vendor here And always relationships we we an we're like been I important earlier find are due just say, the But overall, exception or the there because call, thousands more relationships I to the with on fantastic. that. better of ever said can

Most, to competition, say allocate no with goods what any would and vendors spread they're goods. to who our asking noticeable would to goods say, don't deal see split they getting I want up matter to I best it's -- because dramatically. us is, that where difference. want some the I -- they to me, are certain you're environment retailers. very know promotional to the so And about are, they're thing And similar The going to for them going out

media -- pricing you a more of that to more taken talking more thing we've The that word there's look and retailers necessarily being emphasis with where those it situations adjusted as in in our the and of in. we're not than promotions dealing read is categories about be tends in only the describing the probably most at

retailers on and if have traffic many form that's So soft transactions. I think and a been of

I customers think talk prices would to commodity my them lowering to more certain more items to see prediction going we're get be going -- that for try we're of see about to on back.

for the in. be with actually business us, in the or -- the categories that to it do not tends we Fortunately, vendors

John Klinger

times environment, And Ernie promotional so are able in buyers add to competitively was react need, to goods to our to you. what in promotional fact close price to the to we just saying, on buy that oftentimes those

Operator

comes next Evercore. Our from Michael Binetti from question

Unknown Analyst

Congrats few XX on I you guess, expect pretax the a little know basis ago, the guided have margin is I I than was the to better points. implied XX. EBIT John, about margin, XX you it quarter. year a It's on XX but up for days that's

So it's moving few comp a up, but the times lever you X% need to you said business.

but X% to margins held keep You've the better. getting the X% here,

on then I'm California some hiring we have think thoughts on radiate there the restaurant some changes that wages you're and assume a to in And reason the Any over curious, is the this your teams out if new the I normal has mean changes are will the Any days hopefully, recently hourly had California? early in for thinking and into successes having moving while. your and fairly very about comps. how leverage in you retention point down side. good this comp I to range,

John Klinger

Yes.

with So the X that I'll start X, a on to X. the we're to X fact levering

last X us. flat on that to What that point had So are a leverage benefiting with a of we onetime continues year outsized to seeing items is guidance X in no points our you're our up XX number basis comp to expenses. be

we on German accrual incentive year So basis, we off. that accruals last a we year. And had full reserve wrote there's shut homegoods.com that

us that at ability the leverage to look that, So when the gives you business.

let's our, our you things, Now if the QX look at guidance one of had. that versus other we say, our

areas did we that in the of was outperform freight. One

efficient quarter. freight were moving was goods were the -- how our we we So our first on in more

there. benefited we So

quarter. the of first in then, course, favorable the mark-on And also was

So going on of geographies. -- things see ability our that funds is a we're to. then not wage, available X. about to we in need of market-by-market to rather, adjust across-the-board to up to wages And leverage increase, basis in able have those in lower also California, wage to different both that's talked support one sorry, comp wage we that And X we've plans, do that be things the we on a where our than looking

of we and attrition the to guidance. the need, see where have So as -- our we to closely our in increase we ability ability rates, track very have wages part pointedly, we which hire our

Operator

Our Adrienne next Barclays. comes Yih question from from

Adrienne Yih-Tennant

this said earlier. something Great. a is Ernie, follow-on you

looking specific yesterday seen maybe environment last definite promotional, some points. target you meaningfully April then were uptick those at. May particular sharpening about more but not So sounds the very to had a is categories price you year, pricing the and in strategic It announcement and like we've

So how question you and and pricing positive question information about think of is, strategy mid-single-digit inventory in -- think you -- negative can your sort you kind of guess low and then for you of environment how comp? sort drive do is, taking dynamic I the of my do to new run continue a my to light for store per about John,

Ernie Herrman

Adrienne. right, All

out-the-door of a how of to which like it, is exact a retail our the ensure the is, we on spot that crux shop SKUs shares out-the-door our thing most we any between to which retail on or carry to mentioned you here. maintain and the And weekly happen and the buyers one, retail. word, the remember of important environment that in I think gap comp can always what retailers the the yes, dynamic what is SKUs you the which said terms first on is pricing, is So always right

In about fact, we've not we I will be this undersold. before, think talked

a always all merchants off. to key that's live is that So thing know the that point first foundational our is

retailer. undersold by not We be any will

be if then below we price was nobody or off-price at and the what we're ever gap is another could the our another we us Sometimes retailer it's if the we case. same look knowingly Then format, for. between adjust at that selling out-the-door always

the And and operate is the way are merchants time. all they trained the way our this embedded in

be talking it happen, that adjusting, in. the we categories what there were that, about in if categories the quickly believe I those. retailers most part still react not are would from I would we to the So categories for we're that know to started that and would the react

we're in business. of believe our would be of families in I terms going overall, I to of say, all So fine

see. are out-the-door specific sale promotions However, or if talk sometimes concerned is department website, promotional items player, never prices. those e-com on those promotion, percentage below are don't Which when adjust SKUs, off a we at will I always we're different run an than stores because we that we really into

statistically So about sign at more our value doesn't difference. sure in just our by might it which from same area turns the we even I activity, to appropriately, of know, talked as would time, -- be which make that we are spinning if beginning. stores the take And well equation measure though we survey, you so of measure in the the a there we the away value as weren't be

So again, we we'll no take seriously. now, ever this all if But extremely adjust were. right of but signs there impact,

Adrienne Yih-Tennant

helpful. very That's

John Klinger

inventories So down an are the we X%. our per-store said inventory, so release, average as basis, on in

were 'XX, line up point in to coming levels inventory -- FY in look the When FY are outsized important inventory note. center the me, in our last FY networks we higher comps FY with comps at distribution outsized inventories our from what excuse as as far down the than we year. And you were sped 'XX. the our from logistics However, inventory, 'XX, store as wanted that's and

packed bled away FY that in we packed So FY 'XX, or through inventory 'XX, away we start. That of FY lot in 'XX. a we we

than much that was first inventory in normally you the and quarter. want in would quarter, first away pack So carry that we packaway the to have higher

back on in year. line an you average that last in basis with inventories packaway are total per difference So store when our out

previous the the just from away of timing pack year. the really So it's

Adrienne Yih-Tennant

of luck. Best Excellent.

Operator

Jay next from comes UBS. Our from Sole question

Jay Sole

over prepared I that XX Ernie, existing potential today? the that just mentioned you the heard maybe a even TJX's your just you in beyond potential lot just that see grow of was I you Great. last days in that anything store are wondering if in new where to developments wondering of remarks of grow potential countries. a was if banners you sort outside to your I'm countries. see there's terms growth existing in any maybe of existing there's

Ernie Herrman

point first a we things we So is don't Unfortunately, think getting at markets, what And other one by way. until where looking, all, I those just of great the we Jay, this question. we're Yes. about We're you're Potentially? think the at of is always -- announce. it externally talk -- we could correct?

this -- we're at looking And where but always really posture which has as typically and point, we say can't been when this. our

John Klinger

in to ability and we base grow We Europe, we see Germany, in the -- continent, And -- have or base. store in on store our still plans plans see particularly store confident existing opportunity in Canada. in markets. our to our store in the U.S. we're still our And also particularly grow that growth

Jay Sole

an it. give can HomeSense and Got performed quarter? Sierra then the those us how on And in you update maybe

John Klinger

We're break with out, we how them they don't with how performed. but we're pleased pleased --

Operator

question. We have one more

Our comes next question Sherman from from Bernstein. Aneesha

Aneesha Sherman

as low. slightly a mix international. on remain years, been a years margins case? on digits kind Is about X this is know high quarter. the has the follow-up view in question the has It target comments couple still growing you the talked last that but single that margins. pretty of Or International for My I evolved? of being the was X% the ago, long-term

earlier. quick a comments you John, margin then the follow-up, on gross And made

efficient, different freight X about that also becoming sounds had it's X recapturing and talked years, talked margins headwinds becoming you You you've Would efficient? be kind last beyond from in say kind gross more of you to the actually you think the years? mark-on. that the recapture the which fair going last for more headwinds Is structural business the improvement of of a there's about

John Klinger

question that the start I'll freight there. with Yes, itself. Well,

when it's we against and that was a was we strike wages, my -- -- we last driver so said higher trained caused don't year, basis about the we points, in -- $XXX see benefits. there freight going clawed going -- freight that higher rate where we back the us, dropped comments, forward, see we stickiness salaries, we million in So then XXX a

cost of freight to kind structure are sticky. of increases So the those

go we And don't see to that away. those are necessarily going

of first our kind of able the do be as goods. is bit to looking try both cost some product little towards forward, the of That's as more going we to inbound to which move possible what is as intermodal truck, efficient For outbound we were the which we're quarter, how shift effective. inbound more versus and a

are as as we've confident said. on segment, that we And that approach that in very is And we as the far International very X% still the -- yes, our well. division hard are working ability to

Ernie Herrman

think was quarter X. you first the I pointed out a that Aneesha, had Yes,

John Klinger

up year. was from Yes, but that last

to continue we So

Ernie Herrman

I it's low from -- that just a right. you your first and -- internationally so saw could first half see -- quarter up incrementally Traditionally, ago. year is but quarter. This low always then is a --

directionally, back So we place the look the right as heading for half. we're in out

Operator

from Our Laura question comes Loop next Capital. from Champine

Laura Champine

thought that in this strong quarter. you might execution comp was We so the better Marmaxx X% in up than

think So whether I'm wondering face if could do or actually the what pressure Temu you And now? on macro you comment backdrop like you Chinese from any share is market you discounters that Shein. not the see and on

John Klinger

this one. with start I'll Yes,

But weather down didn't to itself, we as did at a much that we dependent the better. business X% better. weather the regions comp. much round when experience unfavorable also So Marmaxx, performed performed that the in And aren't departments look

departments us Marmaxx that's more that were leaning tells the forward. that confident that our that saw on where I'm towards we us And okay, strong, going very the regions in weather. that, So tells from comps

Ernie Herrman

bit of that out. -- John's such to to analysis at look team a teams And we there, of right groups do figure the control to kind as does

the online so we good, that yes, mix were type feels us branded down you best of carry the as very hit just would to did like that question and would talking resulted we about, players so those they're after. of similar we about it us on brands rounding feel better, -- X, go So commodity-driven the in and right? not weather Laura, much not some

very them business see see up other But could end from or customer could issue their model with little that online taking for market don't guys We use. we base brick-and-mortar us. I other bumping some our just or some guys as that sure. with overlap share see with

Operator

Telsey comes next Our from question Group. from Dana Telsey

Dana Telsey

year on mentioned As you pace of any this And last how think of going? call. they you seeing? the remodels XXX details banners and are different. think any performance the How the you remodels, is on the are about I What

any shrink? then year? still also being shrink, at to Or you're looking on in changes you what shrink flat And this are seeing

John Klinger

Yes.

good see and or do finish years maintain compete again, should say, we remodels more when XX that as a remodels, our On remodels, older is much stores we say, and able old. fit as, are are making so about are to that the that sure stores let's what that's the I comp an excellent store

in and about where making sure it's And maintaining get so start situation into you to and that now you up. have to your to and really don't the sales base a catch invest start them falter

a shopping it's what maintaining matter for comes come when the it's store about So us, they and experience in, that that no into. sure pleasant making customer

make beauty we to it's as remodels, it cleaner in all at our far the look easier the department, a always we're the look. on those that add line. lighting, you to think, Now make do as it's fixtures better to When top remodels, putting we And that for sure try things, the shop. customers

on highly As far focused as shrink. we're goes, shrink still

I As get But goods and be said shrink planning have easily year-over-year. flat protecting the we making while able the sure to in still a that my customers we're our in to with stores. the and comments, focus that shop balance high on also be can maintaining we buy goods sure safety -- making

of of comes it's body our on people to things like year, we're somebody do So to LP video taped. -- it's do started being cameras year, they're last in, likely late added, the are we a towards almost something And where sort the associates. one that de-escalation when we've less when

playing that's that feel a role. definitely we So

we're shrink results, of strategies so plans end then give and able following about set the to into year, look what it's our worked, a position we lean and seeing year worked continuing to But didn't the the again, during at what that to last year. our Also, the when guidance. for

Operator

Shapiro day Our Marni comes from Retail final question of Tracker. the from

Marni Shapiro

talk we little great. a on can The about shopper nice It's quarter. years look call. the just couple your Above stores been bit. closing out of the now. a Congratulations

cards? been You've do? guess Is it coming the couple pushing younger this to up. -- things. they've a shopper in. that something credit younger about guys I them been Traffic that talking has open been getting does you is of shopper in, are

just is like talk a Maxx across Can finding for to shop going And company you across bit are they and internally that Because shops marketing shop little are loyal or a to And HomeGoods them arguably shopper the both that to looks shopper the more you different T.J. brands? you that younger different total. a TJX guys? be you in brands? to what shopper about the

Ernie Herrman

Yes.

them me on then all both to on So as John And kind jump do very open We're Marni, the cross a in and by spot well. right? if card, start the He's of you whole the a younger also. you're way, will Ideally, loyalty, when at touching you're loyalty credit and more loyalty, of you let cross-shop the they opening even and involved build that we'd like shopping. rewards customer TJX get open in John, customer. they credit cards

John Klinger

lot as it with a our penetrated as Yes. competitors. is credit of card the again, But not is

with a that we we that organizations partner So do customers the customer get we on comes surveys, pull from read and information card information our to together. that that available get credit of lot that is us

And that comments shoppers. as to being the younger getting attracting we're that able as the far we're make majority -- of that's these large where we

of So of last demographic. a has steady attracting increase new lower in younger a handful that age much the percent the the larger age been in a pretty years, customers over our

So we a beyond making That's looking our card. we're when comments. those data credit pool at just are large

Marni Shapiro

and as It's doing really push by see or And somebody me cross-shopping first versus like their maybe mom forever now new, guess, buying somebody -- the are these apartment. departments? brand. in that guys feels the people marketing it real for are into I there on that? their And different they already your who new shopping is side house been the data like opportunity what came is you come and do to with you who's old are they has a Because who

Ernie Herrman

-- marketing are with tried to to okay, digital we the e-mails, customer. at the go able out to we aimed use we brands our is when So drive other trying get really

done also as store in have well. things We

think can't would the I lot it's well it would say John of as I and I we measure we think, is -- measuring of as like. where, a this

Marni Shapiro

Understood. of luck the Well, best for next quarter.

Ernie Herrman

significant that closing, we to company. position right. excellent of the financial really to are in emphasize our cash I In want continue an growth our returning All invest in simultaneously while shareholders. to to

updating Now our we second quarter look you, will thank we again today joining earnings to forward you you on us for Thank everybody. call and in August.

Operator

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

You may participating. Thank all disconnect. you for

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