TJX - Earnings call transcript Q2 2025 | The TJX Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to The TJX Companies Second Quarter Fiscal 2025 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded August 21, 2024.

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

Ernie Herrman

Thanks, Amanda.

Deb opening has begin, we Before some comments.

Debra McConnell

plans. as about Thank you, recorded results to statements being to uncertainties our statement actual that in of materially call Today's among are filings could and risks with the our cause and statements Ernie, review factors and regarding Please cautionary and a identified from in our as good includes safe these morning. including, press These the subject our full statements for others, results SEC. release included the the harbor well forward-looking is the vary forward-looking statements, website, statements tjx.com. section Investors

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

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

Ernie Herrman

morning. Good

is and John. me Joining Deb the on call

by our we continue I Thanks shopping work shoppers efforts, collective to every commitment to global and value to deliver their day. all an TJX. outstanding ongoing their start experience to excellent to want our for hard associates thanking and of

am of of business were brands merchandise to results. believe consumers our earnings per second share is extremely an in business to execution and exciting resonate pleased teams. We profitability increase and values of second off-price strength assortment, our our our particularly this our Sales, I by quarter that our continue increases update performance divisions business and indicator excellent all with flexible Now our our and outstanding our pleased customer I'm geographies. comp across quarter again once of terrific across our the great model driven sales entirely plans. all by with as exceeded an transactions. the

customer transactions. highlight Marmaxx, increases both division, and to which performance of the in want comp also mid-single-digit drove sales I strong our largest

to again profit quarter year outperformance, we and our John As once both second pretax and performance profitability, moment. margin per to are more a full share. our profitability for in talk guidance raising earnings our detail in with guidance will

the during banners terrific X,XXXth making open see geographies for in for plenty TJX. existing our store, is milestone another thrilled long were This our quarter, to company. our Also, our achievement growth for store term. of we retail current second a over the We opportunities additional

Grupo the several participate growth Axo with expect Additionally, world. For around to the and Less, with additional in countries our in price our announcements we recent Brands of

I As remainder at the the we we the of for year, look business. opportunities am see excited this about

we third confident strong sales. our and quarter stores and and and are fall off plans is Availability underway we selling excellent, an seasons. will goods drive throughout all exciting assortment merchandise and online holiday is have start, a of fresh we to of to traffic the branded numerous quality across have The of

more first, to cover more detail. second about quarter John? half our in over I'll But I'll in call turn a to moment. talk results John opportunities our the second

John Klinger

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

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

transactions. sales plan, X%, increases. above by home which our driven saw entirely apparel increased sales comp mentioned, Ernie was comp customer and As consolidated our our categories Both

was due basis and includes of primarily the operational as accrual and was freight points versus by our points our a profit plan. TJX to Pretax a incentive year. well higher sales. basis of offset as profit lower true-up lower Foundation. a freight freight were benefits margin XX stronger XX accruals These from margin costs partially last compensation contribution above XX.X% benefit Pretax costs, was up to which This

mark-on strong versus last points driven by by Gross from partially higher basis supply freight, was up costs. benefit margin chain This was and XX a year. offset increase

benefit to last partially XX due year, SG&A as from last expense was favorability. payroll as benefits this well decrease reserve a by receivable points basis These This wage primarily year. versus decreased lapping offset incremental year were government program to store a German costs. a COVID related and

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

see performance. Now year. across categories comp to last and XX basis strength the increased profit saw quarter our saw entirely up Marmaxx, transactions, our second increases home At Marmaxx's which we store this comp good sales X% and Again by of and regions. comp strong the were comp growth, business. the margin indicator divisions, strength of across we both quarter was points all XX.X%, as customer apparel a driven of all versus segment sales divisional

also report which we happy part performance were sales strong sites the stores, We as U.S. this our e-commerce in with of division. Sierra of

see division. We're largest numerous opportunities to growing very pleased our to with keep continue Marmaxx at momentum the and

HomeGoods profit last comp increased the sales every grew and versus at retailers as on bringing sourced day differentiated space. We HomeGoods XX highly eclectic points other from the up world focus We store assortments in basis customers Segment to exciting values. fashion HomeSense margin around X.X%, see X%. year. home

share to home opportunity and We U.S. continue stores to the new market. additional see of open significant capture

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

be we position around of With customers experience, attractive shopping for confident destination decades value-seeking we to are an international world. in operating will the leadership continue our

down centers. online inventory sheet great we're to store the and and distribution levels outstanding a inventory our holiday Balance driven by seeing of our in both our assortments inventory the feel Moving on lower we X% inventory. and and to per the stores basis at We well fall were about inventory availability take season. positioned marketplace fresh flow believe are this and advantage to and

cash to in business pleased the and our returning capital another through flow buyback As allocation, dividend and our strong reinvesting shareholders of generate quarter were programs. cash of growth to also to we while our

Ernie. I'll back turn it to Now

Ernie Herrman

Thanks, John.

see year. highlight customer that us the to the opportunities we I'll second and Now that in confidence we transactions the sales give can half continue of drive

shoppers and of across from a proposition banners. differentiates our First, our we're value. tremendous convinced other of demographics of will am trading one advantage. us that with seeking they value visit any to continue retailers age believe retail and that consumers confident broad I We will keep our a income range strategy when remains resonate

we this Second, have product made holiday planned for a exciting with exciting our great all and are the year-round for consumable category gifts frequently. our believe stores of to even our we becoming with more top feel about We and destination more mind seasons. create plans shopping Further, fall experience more selling shoppers offerings. our that stores will have shopping an and of and encourage believe initiatives we consumers visit

have that want earlier, than is could emphasize goods Third, outstanding. as I to said availability quality buy. branded to we access more consistently ever of we merchandise I

relationships vendor our as ever. are believe I good Overall, as

we as remainder attractive the confidence vendors right years assortment see come. Some can to and shoppers as throughout business. us the gives year of me at their right for grow even to way bring This values stronger have an that the been the getting many great

of and drive trends and Next, customer and flexibility go teams that to allocation our the the excitement. us after buying planning allows hottest categories

assortment I of am best supply our our chain, the excite merchandise inspire confident of that our better With good, shoppers. flexibility and of each we a can with brands curated will that and stores

feel plans. we our Lastly, great about marketing

visits our and reinforce existing encouraging retail on customers, capturing and of additional banners. our Our from cross-shopping shoppers attracting campaigns leadership will our focus value new

something plan Additionally, we a are every our highlight for values showcase to that products selection everyone, to demonstrate great of available shopper wide that day. is and to every there

Further, represent to media wide in customer to a advertising variety leverage wide base. shoppers we range plan to of and a our of broad a target channels continue

our our customers stores, that tell and the believe satisfaction future. well we continue outsized customer for number value that our its surveys an of of Also to which remain continue attract confidence scores giving each bodes divisions us younger us overall Further, to strong. is perception to

I term. am long TJX over has this confident year, that opportunities Beyond significant the share market to additional capture

reiterate quickly why are we me believe so Let well positioned. we

our is as reputation in Europe United States, Canada, First a the value and leader Australia.

and experience for Second, brick-and-mortar the treasure all consumers we only take able a and retailer demographic. we fashion quality across brand, it put together that's a differentiated shopping believe wide hunt global in to off-price are

range we fashion also believe will appeal a shoppers. wide We to of which offer a broad assortment,

advantage allows trends. of driven are model business constantly our of aspects pivot take by us which to all to flexibility, Third, market

current Next, current stores there grow nearly of store be available base retail just to banners will we quality confident plans. our geographies. plenty our and growth extremely to meet store to our merchandise the see X,XXX Again, to always opportunity us our I'm with

is Lastly, I within depth off-price TJX and unmatched. truly knowledge expertise the believe of

training laser-focused next leaders. and are teaching We of on the develop to generation

company I differentiator. and contributor so a success to am I Finally, major our is culture, proud of which our believe strong a

For our Now press Less, detailed release. in in to Brands which investment moving we our

based pursue continue our minority excited in in a global a are to we growth to ownership position As our retailer we off-price plans have vision, for profitable Dubai.

opportunity which joint our announced we quarter, planned to for global investment with expand Mexico As another company reach off-price with an our last venture our represents in retailer. established this

team I investment to financial date. with strong profile, to BFL's feel addition met strong the good personally and have about have In really and business built they our the management

to beginning earnings we accretive for use We fiscal 'XX. of that TJX's transaction we as per ways a to see this to shareholders good slightly looking be expect are increase always for share cash in value and

Moving to corporate responsibility.

Report annual forward Global looking are Corporate Responsibility release to fall. the this our of We

have hard our teams on Our work initiatives. responsibility been corporate at

helped than with to people example, in opportunities. in our provide we fiscal XXXX, X access young communities million educational For more

continue and opportunities we Additionally, direct training. including in create formal development, our and learning mentoring career in-person formal online, support associates, classes opportunities learning to training of for

sustainability continued and we our operating responsibly remain compliance as We have social program on global also focused to progress against environmental a Further, make our business. goals.

You about report. in upcoming our progress our read can

we on our continue you'll area. hope time to I corporate some am doing what responsibility, take about in more proud across and I of the learn to the this work teams do are globe

profitability up, our and extremely we sales second are pleased quarter. in the Summing performance with

off a initiatives and about half second quarter during we are The year. planned the we the of third have strong start, excited the is to

to those term an geographies. operate over believe of long we the see position As are we leader the we every an excellent advantage opportunities take in market off-price share in in country in, we

of the and Additionally, complacent of laser-focused associates we we will TJX. be I with in retail increasing on believe one we in best want not that profitability truly to retail. best overall remain the the models have I world, the reiterate

confidence forward, relentless Going our ever-changing and and well I of landscapes. the focus our retail serve through to value have that continue business, on our talent us the the economic us will navigate to and allow associates of flexibility

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

John Klinger

Ernie. increase sales to We again, with our Thanks year overall 'XX now full guidance. fiscal store I'll approximately expect X%. start comp

QX. increasing our billion. sales the a consolidated of $XX.X in $XX.X to are reflects billion the sales change flow-through This We range of to guidance stronger

basis approximately We're increasing This adjusted be XX.X%. guidance up expect now points XX.X%, XX.X%. increase approximately We a XX margin be to year's basis margin year's versus XX.X%. gross last XX be versus to last adjusted our pretax point profit would

by We partially expect offset by well from higher which merchandise a be benefit costs. driven to higher freight as lower favorable supply margin, a mark-on, increase costs, includes this as chain

year. be last plan versus shrink to to continue We flat

costs We store offset continue approximately year's incentive flat planning to from impacted to lower wage expect and last us and benefit costs SG&A year. that We're by to negatively items compensation versus a incremental last payroll XX.X%, be XX.X%. be

would We're now our margin. million, about a interest pretax have of income assuming neutral $XXX year-over-year profit net on which impact

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

diluted we assumptions, to range for per This earnings the share these expect earnings of of higher of year As to $X.XX. per quarter we're per share year to share because note versus last $X.XX that diluted a of XX% half second earnings of to X% the expenses of be an compensation our through guidance. represent the flowing It's beat versus year higher not incentive accruals planning in full the previous adjusted now result now to year's important are increase we full second would $X.XX freight $X.XX. and entire the

We're guidance. the in billion XX overall be be basis be quarter to points margin XX.X%. up versus $XX profit quarter of in which of XX.X% would points to Net XX.X% comp versus This Gross about year's pretax sales pretax range be approximately the XX.X%, to $XX in an to to would to basis expecting our margin consolidated year. approximately XX the million, XX to X% delever interest to year. XX to range to by margin store XX%. XX of increase of flat SG&A last up billion, $XX.X Moving third of basis third to down sales to growth profit range X%, be last points versus income XX.X%, points. last be fiscal XXXX basis

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

Lastly, for the would sales our and share the of in $X.XX comp earnings be be $X.XX per of share. assumes would in quarter range implied range to that fourth guidance overall up the per to profit pretax XX.X%; margin to store X%; XX% will X% be

fiscal last third basis earnings When pretax guidance We comparing year's on to points had more our fourth in we an share by quarter it's per the week to guidance last to fourth and year margin this detailed $X.XX. implied the plan remember XX quarter call. that for benefited by extra that provide earnings quarter important results,

closing, are full will year strive always, in to as we beat In confident our and, we them. plans

while cash very to returning invest sheet to a have shareholders. TJX us simultaneously balance in our strong allow We that continues growth to significant the of

happy we're take Now to your questions.

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

Operator

[Operator Instructions] America. Our first comes Bank of Lorraine from question Hutchinson with

Lorraine Maikis

in the about mix And balance increases? talk in seeing like-for-like changes then quarter, behavior value? might shifts around customer the you you AUR price Can between also any and be category

Ernie Herrman

Yes.

AUR the... So John? Through Lorraine, been good consistent, to pretty you. talking right, has

John Klinger

It has yes. been,

Ernie Herrman

move much. didn't It

a Right? I it think up went little.

John Klinger

mostly comp driven by It's obviously, slightly And up. the Yes. was transactions.

Ernie Herrman

the goods. the throughout Right, bottom far been this not as Lorraine, in comp. because it's up do still If, what top goods have down. doing as getting as We balance The you're manage pricing we as continuing. still much at up. on We were again, like-for-like selectively not are business,

We been appropriate. still adjusting bottom have up, where retails

though, if the in you the sure come certain get sure categories, not retails as cetera. right the and is on balance if question inflation and et market about think talk What be story and could AUR subsides, I like the it's we'll I'll look of at on as the our happen And I'm merchandise a that it. seeing with better and well, combination the all though to there'll going of that -- a you've things just retails. in of those be items. margin, becoming think the terms even I'm down about, more buying more the more I been

We this. excellent always -- and are at our merchants

by Our in retails are in what predict. what's happening current us. future the around dictated and we the That's

we're see the at that So based the always we the competition. retailing out-the-door on goods retailer

to say by have of will necessarily been have on not soon come Too up our A those down? lot we So the we categories. grocery though that with that have covered. discussions, retails as marrying oriented of Could feel business. and kind which way,

which significant haven't like up. we been just at said, seeing where our had slightly So is all, why John is right AUR that anything now,

based really think going out-the-door, retails in extremely between we're aware don't profitably, goods as goods and that significant address when the create we're is and of think there still point little, said three from goods us. healthy move that, around gap Having there. buy on we quarter. moderate to a retail when unusual on availability still So but an our number ability especially creating as is could this going extremely internally I you We opportunity exists you retail the a which more is of position, know what's go a of see of forward timing start can I to to to opportunities always to the

John Klinger

the see at. as income look the And we demographics close as results positive And from buying then far product that customer, the we to speaks best better, need. all again, good, mix, to

can a get back driving those if and repurchase easily So go and is goods the customer certain comp, we the into store them category quickly. back

demographics, have. So to making sure appealing this we that for appears which us, we're customer it's it quarter all about

Ernie Herrman

appropriately lot know The we've lining the of as one touches don't treat script, you're all to for talked I that we're my I to as have our and groups. in is on -- we marketing, as we the just our how, to to, in merchandise get again, we fact script, better, are which up age more use we the to John market that that, Lorraine, at we channels given noticed questions to in so marketing, good, but trying said much. a years, what how you ensuring it to much asking all, apply mentioned airtime who thing, I spectrum, about that with so I marketing, you best if about One and the need mix, talked if test far we I've look think

to with where We the consumer different all go evolve going. to try the to is channels

really differentiated customer. business expresses of brand's every media different and message Each a the channels. benefits our campaign to has We model have broad that invitational

with And day. our with sell in also same, marketing heard you is me every script, want my So strategy. consistent up lined it's we that saying, to that everybody

you watch HomeGoods we wide marketing say, not or when about to it's audience is much, or Sierra, we're or a going it Marshalls spots, as at narrow. haven't whether our talked is aimed just Maxx but being It the So after. that

Operator

from Morgan with Stanley. Straton question next comes Our Alex

Alexandra Straton

Perfect.

couple for me. a Just

Just rationale there's you between those on then investment elaborate bit first JV strategic the X and the more Less, little they a now Grupo can just and add? in Brands Axo For what uniquely on

honing than enough it. bit though in was international business, offset consensus And came expecting, was then on weaker just completely Marmaxx little to even a in the

helpful. Just what about there seeing you're Any the wondering in be can if color you international business. additional super talk would

Ernie Herrman

so Alex, to big much, good Axo, here's very Grupo Yes, we're questions. here. do thing again, X trying that strategic these the opportunities,

have -- level, a great happening. this picture we high So can at you this

this I've as the have model. team We the -- say knows business the retail a And great it I certainly, in here, some objective, we on of course, in talent tenured long off-price. of emphasized, and in off-price -- also everyone but not would best I'm certainly -- and have best

And you so happens from you has very have seasoned, able that time, is now advantage in get some would reticent what to I business, expanding no takes really able where more than readily a take a pull a have manner we core the are the globally of group a number to where to ago, of been management bench years to at advantage core would geographies. we of and, have same we point additional risk that seasoned, the strength, we're to have

-- want advantage started you're to world, say of years really going John the that model. we these or do it's people, a of sure is great that's and up in And business in We it we're finance couple now We few whether make good the So operations take this orchestrate every mission us a replacement. -- a why merchandise. give we the to and to able a right realized have seeing world, from ago. to have that we we're we -- to this where his in talent does if for

private do a to We is as to almost joint one. very a market the there. was and at talent we've a get it obviously, That's and Mexico, for as people business. while now have own I'm half sorry, right a do that. we -- done know there's business the to felt looked We So to also venture, it appropriate have involved we be that a

BFL, same a way. little different, can where -- but they're we idea by the and terrific,

experience, culturally They off-price have them. with have enjoyed our are a lot on We point, really talent similar. have original again, sauce the help are secret that side. the helps can also a of retail people and They very -- to involved afford that little But be they meetings now, younger we them, to them investment. helps it to back have merchandising which we our

going sense growing grow model, to now we're we And because a with new new make that TJX. consumer and of so have of geographies big excited do that terms to in under and Does the the markets picture talent or?

John Klinger

the And margin. was international question then other the on

Ernie Herrman

something, Yes, you the John, want then jump international, and I'll do want to... in you say or me to

John Klinger

Yes.

what explain here. seeing me Let we're

up So had is gain lapping write-off, But the we're transactional we had German had a -- the receivable year. against. we last FX affecting other that, us last a we write-off we're the year, obviously that the that that's thing way other also

So versus that's points year, we're margin. XXX things. those given what's to It's X pleased the which basis up with last driving

Ernie Herrman

from we Germany a this benefit It and the or issue. bit a From of on more perspective, job. the specifically are a a a, have and environment, way disappointed was the numbers the merchandise U.K. over X were in a specifically more of We And shipped Europe a little combination Alex, business that piece. over our I issue. from little international would seeing sales few culturally already made of started the stores, the every about of was there in not adjustments we decent But is we're division execution. you. has of And a we've of and talking in, good U.K., with would tell It was mix this done weather. what's really good tell last size the the a months company, the you really our that some I ago, team there in weeks that's X own we in the

in that the the performance was we And on and we in U.K. the believe were what we're disappointed number, forward. that's specifically And right so international going tell affecting But path we would you Europe.

Operator

Matthew Our next Boss comes JPMorgan. with question from

Matthew Boss

another on nice quarter. Congrats

you cadence divisions cited could Ernie, So across the or just for start strong saw if you categories as holiday. you Maybe supporting trends recent quarter. positive the you're quarter? and And that see lead third speak second indicator during same-store that of elaborate you sales on this seeing maybe to a what the the for

John Klinger

Yes. -- great... No, great

Ernie Herrman

Well, of I X well C. B kind -- A, mean parts and

good, So we're Matt.

John Klinger

Yes, Matt, can start I off.

Ernie Herrman

John will cadence. start the with

John Klinger

positive our Obviously, across divisions. we saw all of comps

note that, each other thing did see which also on The improvement important to is a is X-year stack an to the basis, of important quarter, note. we month

Ernie Herrman

dovetailing Yes. strong the into board. on asking What's to And with it to happy strong is been that start you're nice the then about and QX healthy start sales our that, the be to seems QX. across line, we're about

feeling that about. something we're is good that So

And summer fall -- coming of first is a business, for be, an their many do be course and all, that apparel of transitionalizing QX think with the of treacherous. retailers out often we is into little goods, spring -- a goods can to component can have going that a

You have cetera. et weather dependency,

on have the great issue and buying think, I Europe. strategies But goods. by Canada allocation plan the as well team's buying in job, much planning States. and to try we transitional as as ship We that, the of right a an our done way mitigate regions Not and have United we and within

about been QX, the good feel into Marmaxx as the head for sales this in business apparel addition as of us we mentioning the last in -- seeing and really makes where we heading indicator we in of is we're weeks So to ends another the what feel I'm started couple Yes. we've quarter. that

feel this which John gotten last mention we say, the merchandise I script, the improve our I I in lot year. after know, year bodes store of we also year because is that since but we a more that, time, brands experience, our and and you think, talked giftable customers though more I have after With better. about on well the to better, we're I'll better year. then that always wider range year, year mix, did best, thing And of gifty good, as all as a after carry, has

first QX And families QX, because we're business many across gift to so of comments oriented I the my I'm in on well positioned really believe, the to store. giving QX. upside be for bullish were of going

John Klinger

I mean to if our And the I'd with definitely apparel customers businesses not the that, on compliant. weather stores with consumables shop that to that is goes strategy the gives a just home the both add and in reason businesses.

Operator

Our next from Paul comes Citigroup. question with Lejuez

Paul Lejuez

If you apparel talk bit more a business. about Marmaxx within little the could home versus

think said home HomeGoods to drivers business I both relative Marmaxx all. how the different within But performed up. each, business curious the were of the you at they were home and in if

level, thinking the second And the that most what year you half. you're curious just surprised high in then about at a the of first very how curious half the I'm influenced and how might have

Ernie Herrman

part this about a home apparel, the when versus won't on be -- the it. really think Well, Okay. surprise the about let's you so

sum at home. it Marmaxx -- the really outpaced So the to the you you really, home going not exact Large sum I numbers, it give to, but as furniture, HomeGoods would that HomeGoods and would that an know, ticket up is stand for goods. outpaced, I'm industry-wide what in apply up that home business you industry, slower. as to like also we big And

their we're going So store and QX. very improvement of the for where John, We're start a HomeGoods seeing did wasn't specifically driver the in you slightly the with of the the HomeGoods with very outpaced, was difference. across business, But that the happy by it Marmaxx can and though I continued say even happy the lot. way have...

John Klinger

and up Yes. departments that HomeGoods, between I Marmaxx would we just add saw where we line see similar... that

Ernie Herrman

get you point. was when really similar Very made difference. that It ticket, a trends. It's Yes. good the to big the

Is that impact you question, I in the the I the what about that look any is way got make -- it the on half? Paul, does first Was Your at this half? to how right. we want sure other surprises back

Paul Lejuez

Yes. What half surprised thinking? and how did that influence the back

Ernie Herrman

more I that a of a guess more availability we environment a to and surprise alluded bit have little there's There's the amount this. surprise surprised think always -- little of to of even and thought. would us of know to little us charts, even little, of a the even I I a surprised tough off bit than amount -- only the going lot is Yes. the a goods is we're the -- be by goods, we

that So us. caught

So that phenomena affects always what hence, And is we is availability. whatever about the how we beyond your do for hand-to-mouth how those that we about what half? at So more the word, categories -- -- of back half. is normal we does the the even in different back what words, look we use buying there affect actually in open closeout much leave categories

And had half imagine, clearly of availability. us, liquidity availability. back surprised If there's it as us no increased the amount more leave through because can the of on QX, anything, you so for it to even lack and

So that's probably the biggest surprise.

Operator

Roach comes Goldman Brooke Our question from Sachs. with next

Brooke Roach

year? the And and question forecast thinking in opportunity prior you speak basis? on on your what's trends, expansion versus is on margin. margin thinking? any takes chain to be merchandise a you And view can changed My that margin other supply half elaborate for of on near-term further your Can through back puts on the freight should multiyear into your then we and

John Klinger

I you Do you can -- to want or with start to start with if the forecast you want me start do freight want.

Ernie Herrman

Yes. Yes.

John Klinger

of our container increases We're to the the of per freights seeing, some forecast Yes, ocean seeing the we're ocean care half some so we take rise. that freight additional in expense seeing. that back add did forecast we're year to freight

our that forecast take to step did we something there. So in add

Ernie Herrman

as that looking you're I look on we margin, Brooke, opportunities, do see is asking of it, out? margin about forward, we kind think

Brooke Roach

That's Yes. right.

Ernie Herrman

Yes.

talking very you merchandise margin? a you say that's are Well, -- when Okay. --

Brooke Roach

merchandise margin. talk But also... can We Sure.

John Klinger

I in we comp, past. X% points, again, mean the line is outsized still a up the be no On with what expense to is consistent. to margin X% we've consistent message bottom said XX could That flat assuming headwinds. basis

Ernie Herrman

a one Yes. year for market keep share. raised about before. margin talk aligning We is of the from opportunities where of we our have think But starting Obviously, mean the -- merchandise margin, ever than all we where to up now gaining is more were this going lot for to vendors the we which of the year, with the I about, our planned, and situation that reasons these stars reasons.

bode us as buy move forward. continuing relationships favorably more of terms to continue should to Our well we in goods

where systems Another obviously helps the right flow, gotten the we upside our put markdowns place last a getting This our in right division continues at up even markdown margins goods our you this. end sales, better. margin of planning rate and because where couple every directly reduced years which stores, last the are and clusters of our why to -- in our better the merchandise I way has get associates manage have increased -- when an think planning of our over you is with better merchandise is -- and couple the into

which States, in benefit able together in and different Marmaxx at done Another domestically, place and huge climate United different putting mix, strategies the strategies in merchandise the we to the HomeGoods specifically, our across is are now we've and Sunbelt margin. a also to job zones tailor region a better

I doing order going I is bottom seeing the over And And we've about about think where in to think is help X% a few years. -- to this line is also that we're have talked also that is I our years an a business, -- to our total we we're going bode versus our for going margin, you now, see pretty at look TJX get when were. total few we're well to obviously, that that's margin. short Europe talked for goal there John before, what to this and

big And big feeling TJX, markets, very specifically, which see be are upside excited continue throughout still side. good Canada about I profitable. our savings, to margin still question. component the and to is we're our we beyond so value and opportunities then continues our and value, home good year is feeling where because going great that a about Great still to business opportunities can grow, is business margin think fashion of the year the provide in the But excellent, we're obviously make on we there see at sourcing just different freight able just for to we after -- margins as

Operator

question Barclays. Yih comes Adrienne from Our with next

Adrienne Yih-Tennant

well me let Great. super done. congratulations, my add And

at talk your prepared overall about obviously, in were and the call is, your for the but today is worsened, versus the obviously, last The can we first consumer when question then U.S., sentiment health macro Europe, as Canada backdrop consumer model the quarterly you the backdrop has that. both -- for

So that's number one.

then, Is Is can hours? it payroll return? expect it just in employees? get the you do John, you of And investments to going? talk are about where store terms those What

Ernie Herrman

country we know the a -- experience. kind seems some and to reports The have, of at be see, is lot would of certainly know We of we out All with, the have trends landscape least is going. versus vary running information to for the I everything keep I on you a macro, to you are health get that into kind me for similar could wait, bit. I brands say, question growing, same quarter little happening if wonder our adjust. what's the is at situation. read by a think first deal great also the at in the situation tougher they our always -- we little the I availability wait come does to so where that macro makes we of -- U.S. Adrienne, which

for that to answer a just ago. So quarter again, tough could versus be, me that

be movement or We also see by months don't to months. tend It X seems over the quarter. XX to

performance to but had to we own than know some tougher difference little would not we've we think, are say weather Europe from challenging is Canada was I it, again, hit and weather both probably I challenging. both ago. our due a what environments in I that adjust better it would half comps and execution, pretty did Canada situations. can maybe more that do. Europe, with it X our is areas. months up up like of numbers. there, against there. we we those The Canada, our Europe, was which, challenging because had say, like in

for followed years. us And you've

identify that we we're QX. execution could why start seeing team know the have already think addressed already as whenever on, things And You they that that improvement lot has we issues, great. we which is really of improve address that we been And a we it.

environment though, economically, challenging in Europe. is the say there I'd

more would ago. so So than, you and I did again, question, about... want talk you a John, bit can the to X ask understand months what probably little

John Klinger

Yes.

the wage, on see geographies. continue of we So to wage increases all across our

think, talked, some Ontario about of wage. a me, quarter the of remember, a -- as We've recently announced the minimum I well a most U.K. XX% think the the announced And seen seen wage we've provinces, in You'll Europe I first we announced or course, in on increase excuse call, increase. that U.S.

have where Our in increasing, as obviously, budget gone. also to we where increase we for that something legislative strategy our the that keep well. holds increases competitive also are still have wage, reasons our But we

So either have if pointedly the rates challenges ability go to wages. and we some hiring, see we higher in attrition or increase

Adrienne Yih-Tennant

Best helpful. and back-to-school holidays. of Very luck for

Operator

next Our Binetti comes Michael with question from Evercore.

Michael Binetti

on great quarter. Congrats a

big stacks X% half, the and the to allows back mentioned a XQ. the third just quarter very a against earlier might X% negative I Is ago? imply plus there total for HomeGoods You model like a tough quarter up scenario has here, the in where looking through Kind X-year the X stacks third coming company year wondering comp comp in accelerating of at compares that guess. for HomeGoods the

a a points comp X% to on and basis flat to the the in about since then you of And little bit margins, X% spoke flow-through leverage. framework normal XX

while. on that we cause that about? back for should normal You've think framework to down been the that that there the a to horizon anything slow Is would outpacing

Ernie Herrman

Well, I'll HomeGoods. so on X things. jump the

would anticipating we don't run feel We're not yes, HomeGoods a that. So negative.

That would be not we So is good planning. question. what

John Klinger

basis we But a being margin, onetime comp this leverage to really so, the is X%, about what X% flat that the to been that to X% obviously, us and X% year had saw at consistent this allowed reason. year we've number a On to X% of that we XX pretty that's items the on X% points. to up versus

Michael Binetti

next it -- think you Okay. Does about the year? same out as that framework? is change look Or

John Klinger

consistent to next what said, we'd be with. it not to that's place XX basis comp again, I X% I holds. guidance what and X% year, said But that that's a is flat at what FY that, what giving model yet. would we've Like just points We're still 'XX that's point of this up

Operator

next Mark comes Baird. from Our with question

Mark Altschwager

share on what I the some some first are same at But apparel. and time, some gains. report maybe far. comps Just Ernie. and better market seen some positive out in the we others the store including hoping nicely perspective was obviously of retailers Marmaxx we've thus on general department results merchandise commentary the to very get to seeing more channel of for compare mass

consumer? protecting it of you to comes you're your some mass how that speak So just discounters can that also the are competing to when flank for trade-down

Ernie Herrman

looking lot best some have, stated, we're way, there. just you can, there's We Great share by all by but We the as we gains. a in U.S., of way, been in as to track -- And numbers. as Yes. the that the don't question, your same market we continue our Mark. to good point, monitor we've at countries the of we, this information out

clearly when see you first can at so track in share new Marmaxx do the total thing stores. we And we -- with gaining well, look we're look market we So you is total, the at total.

have up information as that it apparel picking we're Now say shows both. market in in home we I in where you that the share is, some the how in some It out on to of and have slice home. it. would discounters depends

things more are, not some furnishings if home look driven, a at what families they number, in they're Because the little all make that is if of if it's with can one we general and home it which -- other it fuzzy. business but throw have you there,

in area. we pet For a have business home example, our

business. that a does carry, lot of have consumables the that home in gourmet We -- food where that about, we talked our John like that's

John Klinger

Greeting cards.

Ernie Herrman

cards. Greeting

John Klinger

paper. Wrapping

Ernie Herrman

business? is those Where that funky. it Wrap. So where in that's Yes. really gets

that your But on protecting of -- total can, at of, on reports sales show getting for the So than we those that are your in the show retails? sales competition, do any their Are look any groups written are they against are we in our were? Are we us we what wording sign like I that and comp there the because best sell will home for some industry that on side business picking promotional -- flank will that clearly we're is look ours direct feeling your close? healthier as competition.

clearly point, haven't and seen by we're of gaining But share protect your are. market we're home we it, being aware our well. where in to flank trying now, they to as Right always

we aggressively them our things from categories business, merchants values very the do of fashion we shop look in business, doing is that when is one perspective a their our to then whoever the And of better around better selling it? again, at carry to is they offer priority we that's first it everyone Because we it? than Are us. should Should differently? our have retailing be value more that, A, else

of flank, So that's used. into the you love goes the kind all of to I so kind terminology protecting that speak.

John Klinger

Just on day. being of it every top

Operator

Our Tarlowe Corey next comes question with from Jefferies.

Corey Tarlowe

Ernie, on I opening perspective a was wondering if could gain I points. price

I AUR They've think, do opening points prices. forward the more of prepared in sign you about it. highlighted other broader think, Maybe think have promotions. and going price it remarks has about So context also seeing, the cutting ticket. a also, that your a retailers you're talked flattish trajectory How And mentioned within the you plus environment? bit for on of I little

Ernie Herrman

Yes. Great question, Corey.

why We talks far is that we the which we're a reluctant a average so market oftentimes, fast. out this, often retail, of So start we giving because the it, top-down John departments. -- average sometimes ticket, moves -- projection won't go about our unit with it's top-down manage on always too after and mix

that's at So have ticket, area are low accessories a gourmet food there. hot we're could driving, sales or we but an area a

disproportionately Just by could ticket that a lower our than to the temporarily. that something drive fact little we're going else, that

John Klinger

up go we units when see normally we But see...

Ernie Herrman

if we've point this brands our is go look had, depth really -- they're we've at having you and the talked of what all better, up. meetings mix beginning, basket We the our right are goods, all point banners value. is opening But good, in is at we a the about and balanced and specifically, we price calls believe of units But last markets. more the best strongly having opening which why on price Right. Right. in over ensuring few see the all so throughout we -- in at in

that you're So always move our why brands in point brands. in price always passionate up much seeing ratio around and not better our to we as about against passionate though. which we're ticket are being balance it, much, it as better we're best goods that is And we balanced, it and opening we never about merchants because lot. And have every retails And our insist little bit, moved get is let good, on the we thing don't best. of top that let only a we we Again, down a that from hasn't nature better, that merchant a have its little. tell take a course The but we mix fluctuate balanced away it.

price answers that point question. hope that I opening So

we on at not that door. our something that back around that's -- cut call, thing value cutting we well. we that the price. is out an price well, it, we're item happening is going better of out see significantly the original the the selling prices is of the Or around the don't coming down us, when cut going regardless we to on proportionately cut But this if when price to because the the would they're we're ensure And beginning we as do cut again, as than what's prices, door because happens

John Klinger

process. markdown the through that do we And

Ernie Herrman

we what we we ever Again, never where the But what answers we and automated continue price prices. right when cutting undersold. adjust will it. us is prices the take a cut remember, slash very is Hope can that just it and we can Which to be take to adjustment we drives retail. markdown, we that's merchants think a new and initiate do

Operator

Our from final question with comes UBS. Sole Jay

Jay Sole

financial the do you strategic us less? the another XX% Ernie, help why I about For you just why see rationale, sort not just want that... rationale. stake, And not -- X how understand Less. a to why more, Brands question take more you ask about talked Can of

Ernie Herrman

so for might these could specifics. couple get negotiations, investors less Jay. some be good, to jump very sometimes be for in the an will looking start that on -- these of I they and than John into site of but this, But us be with a looking Well, XX%. when That's -- I actually one you investor and won't of

see you start after good a exploring, you number. Sometimes

of own, there's the Sometimes and where own. at much qualitative we are science, would meeting say And was there's to what but that think up, we're mean you want -- spot how a it up founders, with the us the don't all feel out then there about great, in level. as discussion we we minds, the I feelings the kind think sum a and bit have I owners, we always that it's proportional feelings. the come that us, we right amount -- of isn't much thought they our we of much to we how And their given ended some sweet a to should

John Klinger

a looking looking complete They buyout. for were for weren't They a minority investor.

Ernie Herrman

weren't either. for They looking buy a XX%

John Klinger

enough And skin at XX%, worthwhile. makes game it in it it gives the that us

Ernie Herrman

we plan in. add a accretive to the think if that next believe though, the the we based is time, a us, -- on We we the what about XX%. And it of in a have with Jay, XX%, you And we it's that way works year. can, value put can years, very number it we neat a it's see own it couple the we same -- as at still investment, healthy stays

at secret think and impressed we terms to what sauce, like speak, we're done. grows it very really can. the it want so they're with if to they add our and buying So they've we, And excellent collaborate, in of

wanted want you of a decent buy so chunk, in didn't think to they marriage. that great Yet own kind a zone. out, I to it's up and we end middle

Jay Sole

thank sense. you so Ernie, much. Makes

Ernie Herrman

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

Operator

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

disconnect. you participating. Thank for all may You

The TJX Companies, Inc. (TJX) 21 Aug 242025 Q2 Earnings call transcript