TJX - Earnings call transcript Q3 2025 | The TJX Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the TJX Companies Third Quarter Fiscal 2025 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded, November 20, 2024.

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

Ernie Herrman

Thanks, Sheila.

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

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

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

Ernie Herrman

Good morning.

want is made their families the relief Joining me go and impacted Milton. Hurricane associates, and all our and who I our of in that available by we associates supplies out with Deb our call To our Helene to hearts and efforts, on John. today saying help essential call been to emergency by affected has the resources everyone begin to areas.

to with support. American We through communities also commitment made seriously to through long-standing provide our organizations communities Cross Red the TJX times that critical Central to our We during the and emergency need help our supporting donations and Kitchen of Foundation. take relationships World local try

store store quarter all I pleased of growth third hard of delivered came end sales global divisions efforts for and for of the customer by their at increases want of and their specifically TJX. with the TJX transactions. quarter execution in X% to and business our I across our am to entirely to International I Comp high thank to team Now comp very commitment drove with plan. each results. work the associates results, our am sales continued particularly our European personally as at update all want performance. third I driven increase strong our operational pleased our our division. highlight comp X% which

assortment stores. of Clearly, our terrific banners values visited our and they across great our with shoppers retail resonated when our many

of and earnings outlook terms per both profit In are profitability performance, our With quarter earnings and in pretax again year guidance share. margin our once talk pretax more margin our John will moment. and to a exceeded profit well third share full per raising our profitability, plans. we detail for in performance

fourth start. quarter off to ahead, is Looking a the strong

across this continue fresh, we online in and are to excited States in internationally. to successful see our about share assortments wide the range great continue of of and a Longer exciting outstanding We us flowing gives the we season gain market holiday growth confidence additional and availability see which United to and stores our beyond. brands, goods opportunities term,

for global opportunities more in over first, to detail. turn call third about I'll I'll growth our the our in talk John results moment. holiday our cover more quarter a and plans But to

John Klinger

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

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

end higher of profit Home the was end from high this we transactions. and fourth Apparel will increased margin again, both our by due entirely sales of out quarter. of comp consolidated and of last our to income. reverse Once which above mentioned, X%, net saw versus of comp margin driven is expect basis XX and benefit primarily our year. a XX savings Ernie most certain interest customer was points Pretax timing basis points XX.X% in high the profit expenses, plan up quarter Pretax which sales plan, expense As the at categories the increases our

increase This closing primarily year. was expense incremental and merchandise year. year. lower which payroll last SG&A to points -- due an business margin was last XX e-commerce increase was to year-over-year Gross basis largely points basis the due incentive benefit margin. store was compensation points offset costs, increased and from wage basis XX XX this in versus favorability HomeGoods year This up last versus

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

our store third indicator entirely sales as our of up basis At to comp transactions. segment were strength comp increased proposition. divisions, margin our customer year. Marmaxx, performance. We by Now divisional increases quarter see and of quarter XX.X%, X% versus the XX was of points driven profit the all this great across this Again value a last

increases. closures third store by sales During the saw quarter, to both home categories, negatively Marmaxx's due sales Marmaxx's impacted apparel were comp hurricanes. and the

sales excited plan customer transactions T.J. drive about this are Marshalls initiatives and and season. we have holiday the to We Maxx at

last profit business. division, our some comp grow XXX remain we basis great sales sites base and customer share. its Long can grew U.S. for up its our further have XX.X%, Further, store confident Marmaxx, market year. merchandise points that increase we Sierra term, X%. e-commerce margin HomeGoods plans versus increased in our to Segment largest

negative had a of year, closing associated impact As a significant the reminder, costs the with online from we HomeGoods our last business.

impacted are third with of on costs that our and Canada's store terrific HomeGoods During mix year rail milestone. margin constant to basis sales store due around differentiated the long the our X,XXX to market the both the quarter, At highly year. shutdown. well freight world, a year-over-year proud in Canada, eclectic that items XXX decline mention division, our profit most That, U.S. merchandise was comp share comparability. basis due over some the versus Segment believe year-over-year open positioned nonrecurring the was term. additional to along and to of in X%. up a down want from I we were XX.X%, TJX currency year margin were our a last to HomeGoods With points HomeSense capture last we that this of increased

off-price are only We retailer in Canada. the major

We good, and well-recognized better across have base categories. very loyal and best our offering a retail customer brands

believe customers even increased of strong versus with We profit on and to all to basis this attract At last well X%, sales sets X.X%, XXX a more up in year. Canadian X Europe International, both that basis margin store points constant us banners. improved our Australia. Segment up TJX comp currency increases

pleased overall said, very Ernie division's with As our we results, performance. drove this are which European

the this division's profitability. we can markets will retail increase growth European on Going we additional confident have a gain international and Australian that in of forward, moment. and to Ernie opportunities say are more share both our

on about and and we're X%, outstanding X%, Moving Balance sheet to our feel the driven was lower the at holdings We down inventory a basis availability was seeing store liquidity per centers. inventory. great our by marketplace. up inventory in distribution

and We to with of flow cash quarter throughout capital dividend shareholders buyback are fresh growth online the I'll through were our allocation. and the pleased while programs. stores season. very very to We positioned well in reinvesting to returning our cash strong of business finish also our our another holiday flow assortments to and generate

back Ernie. I'll Now turn to it

Ernie Herrman

John. Thanks,

fourth us that in that we quarter. opportunities we driving the and customer keep can confidence sales give see highlight I'll the Now transactions

every promotional our can values importantly, First, consumers remain holiday outstanding wait value committed We stores consumers shop This to our meaningful day our day. season, not have shoppers throughout they see days can to as to delivering excellent or expect this as great every shop every sales we a and time to us. most value see advantage elsewhere. for and

with budgets. and of set can positioned outstanding offer demographics extremely price are their a broad our of one-stop of we gift seeing banners holiday are everyone in in Second, exciting up that have well department, stores list. to are destination every we to their Each availability at believe consumers as gifts across income our marketplace, for the appealing With offerings on shopping points buy season. for destination this an gifts for been shoppers selection meet we a the range well

we'll holiday a focus gifting the on year-round our after Further, continue season, being destination.

fresh we we do a they as times our new assortment and key every multiple of ever-changing differentiator we plan merchandise we our see that shoppers Next, time which a are visit. our year to confident of merchandise, flow is to With online all believe something business. week, stores long, can

year. In addition, categories our the we to flex plans trends and will new great be about feel consumers holidays, the to our the stores start to believe looking for we after

consumers to marketing of values on plan of Lastly, highlight to gift emphasizing great are advertise Further, and Each a everyone We we quality to holiday is earlier reinforcing an value channels leadership. media that wide our of to demographic emphasis and our great showcase are seeking with month. are a through there our that this and demonstrate age to about gifting for day. wide something across every a campaigns, which variety our feel inspiration. everyone, brands reach giving selection products who we available plan income digital launched

an and position. Moving executing continue world our our store excellent allow record attracting business of the flexible we decades confidence delivering long our believe strongly is Giving that grow and very position us sales knowledge is on, model and will to me a we and our are tremendous and leadership. new shoppers. growth driving expertise on continue We off-price leadership in customer of off-price the capitalizing growth, of further our around comp transactions value believe advantage track to

our continue see further grow in base to to existing Next, our to -- store countries. opportunity we follow a significant

potential current stores just continue to over retail we see our current to X,XXX the our X,XXX-plus in banners today, With open stores another countries. with

fashion heard great wherever you've and at off-price we before this, consumers seek our model can me Beyond believe work brands that prices. say

to confident to said, T.K. consumer. at and Spain. in looking we marketplace I'm and excited is understanding timing the been we planning right. Spanish strong a are that for announce some time Maxx the of that the that We've quite our expand And that the have are today banner With market

our in the and Importantly, to organization. small to Spain field market, other European effectively serve infrastructure a local plan we than office leverage existing

expect open XXX and XXXX We to we more than stores stores long see Spain. early term, to in potential open first the in our

and In the our are gain to with new Grupo the in our in exposure our investment off-price participating Saudi Spain, For beyond. in growth JV and Mexico, addition be and UAE, Less, extremely our Axo Through Arabia of pleased expansion countries we'll we well. as Brands markets now in to off-price planned in current

ways see investments of with attractive long the to use an We are value, growth term. over for looking good we and profile as increase and return a cash always shareholder these X

me around capture additional a going to Significant remain as gives of share that even $XX forward. All market opportunities world this confidence retailer, global billion-plus the

to feel are will we to our convinced I'm to and Summing about for shopping we Further, Longer up, performance, share. season. at training great hunt I for line am success focus flexibility many third continue pleased are be I with our our selling years reiterate and our our that confident want profitability. our to and culture, top increase is term, holiday and our continue will key we to come. ways very increase to our that and unmatched leadership experience that be teaching that value our treasure market looking initiatives advantages quarter on the talent both and contributors always allow to us global major

the our many corporate encourage anyone in more learn our corporate section. responsibility website, programs, and Finally, on in our I initiatives about to we tjx.com underway efforts Responsibility have

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

John Klinger

Thanks again, Ernie.

full calendar reminder, fiscal and week quarter for As year's exclude adjusted last extra in last year benefit fourth a the our from year. the numbers

to we $XX.X margin of sales range of flat be range versus Now points the XX.X% will overall down to XX.X%. pretax last adjusted basis quarter to guidance in billion of versus to XX XX.X%. $XX.X I'll store year's growth to in start to the the with fourth the consolidated comp flat basis adjusted billion, be to up to down XX.X%, be X%, XX.X%. where to profit sales margin to XX.X% X% are gross be expecting in be points This XX And last year's range

points income margin assumes margin accrual. a from million, basis which gross deliver would to XX expect year-over-year year's our basis which XX to favorable XX.X%, profit be negative interest be shrink points. net $XX XX.X%, As reminder, last fourth impact this to pretax we of year's quarter SG&A a by

Our tax of and assumes fourth of XX.X% billion rate quarter share a guidance weighted approximately a also count X.XX shares. average

$X.XX range of versus per last in the expecting -- Lastly, we're share year's $X.XX quarter fourth adjusted to to to diluted $X.XX be earnings $X.XX.

Moving full year. to the

comp X%. continue expect sales increase We store to overall to

in by basis adjusted $XX.X This versus versus XX.X%. billion profit a basis range of XX We're We be $XX.X increase XX.X%, points guidance last would expect to our to the be expect points margin margin We point be pretax XX.X%. last increasing billion. consolidated up now to XX sales gross to year's adjusted XX.X%. basis year's XX

We expect to by this margin, merchandise driven a chain by offset higher costs. supply increase be higher partially

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

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

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

per weighted to We share benefit in a full per entire $X.XX expect to the earnings of Our that count average earnings of rate share third earnings adjusted third shares. to $X.XX. quarter quarter through expenses represent $X.XX in guidance be now of year out an assumes beat X.XX XX% expect the per $X.XX. fourth It's would of share to diluted XX% of and tax we the approximately increase flowing XX% diluted billion important the as are versus quarter. of to full share in timing the not $X.XX year's This last fully reverse to we range year a of note

third In our closing, want the the reiterate to the execution in with across very are that quarter. we of company I teams pleased

for and always quarter them. the strive plans confident fourth will in beat our are to We

an very in cash significant the have and a position simultaneously to while our excellent growth strong We in balance continue are sheet investing shareholders. TJX of returning to

to questions. take happy your we're Now

limit As a we Thanks. many questions to we so can. X questions your as per can please as reminder, person answer

for up we'll it open now And questions.

Operator

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

Matthew Boss

on quarter. congrats another nice Thanks and

of the elaborate of change you of Ernie, if XXXX? margin cadence and the looking on or or the forward. the John, then, hurricane just And could disruption, momentum So you share continued speak outside comps weather Marmaxx at in through any Maybe walk outline expansion? drivers merchandise of business in merchandise to market just holiday could or third margin maybe quarter in drivers

Ernie Herrman

Yes.

the Marmaxx And So good hurricanes Yes, was the it that unseasonably question, warm stronger where really beginning -- weather at in starting kept than down. addition later, us Matt. we up in were off the that actually the so Marmaxx ended of some pulling in we quarter. us to hit

our shopping warm reports the you're affected hurricanes, from where all not asking about the we unseasonably probably I'll had I retailers Europe I'm In business Europe, fact, And weather we and heading is pretty weather. much rounded different place. starting the but down off to you've we good where in benefit seen of the weather this has you a this, enter starting beyond here. QX -- know as extremely with strong the and were is November just And off tell X, happy a other Marmaxx patterns

there, we there some over though comp tell executing, helped a kind way on cooler like that went. tale X it's X Europe, so weather by that, you did great would the was in cadence team the I that who actually favorable Marmaxx job the a think, they again, that And have cities. of of So were

business, Marmaxx and -- about feeling for where good ultimately QX. feeling the we're headed So very we're

John Klinger

the was Yes. in merchandise And gross your line. question it margin, as margin the as about far most of

comfortable where I DCs on expense basis the with store in We're and And the stores. mean, said, is were average DC up an down they really in as that's also that savings landed. the We our very the had inventory some line. were from, we in inventories, per

were closer DCs to processing on and us need, gives in savings the our DCs that processing So the side.

Operator

Next, with from Goldman Brooke will hear Roach Sachs. we

Brooke Roach

what as mind, tariffs your in China. direct tariff could costs business, such I thinking With hoping your merchandise countries potential to about both sourcing? And could a impact elaborate on on of of terms and have exposure how supply top but availability imports chain also certain you're you from inventory scenario current was to

Ernie Herrman

there potential of of with ago. we before aware we've out we're something years situations remember, all Obviously, and as this things. dealt also watch number along these Brooke. you -- We've Sure, a

-- value you because our model places is where are our benefit out-the-door such retail would goods is our gap, is I relative right? We the this a the our of maintaining one competition. that tell priority On to

categories certain set happen, So to categories, what if we the gap get matter certain while exactly those happen what with our we at does us out relative. items could won't tariffs. Everything or are no speculate up is hit with the that ensure value between we are and maintain door on it that will

make as buying they so always far values Again, are sure flexibility have far not early have will proportionately so and our We the we're that out. been. below we them

The direct other is in could imports. we opportunity, a have other portion or retailers imports own know that's our times mentioned direct ironically, I surface And you of business. more manufacturers that small their very do tends our that to like of this

that so already years number started ago, out of a we've China. diversifying is And and -- of

As from the inventory an this way, know, as bulk aside, our by you the is topic, bought brands. on of

it's don't have want actually those in that. from, we to do get value those we to gap into goods that out are nor to competition. can't retail involved So back visibility back It's we we to goods the where -- relative the -- even

brand price retailer. price if on a to increased tariff to another with that brand carried their and that category, to on were and had tariffs gets So a raise get hit then

gap at be any Could but that up relative competition. to issue will SKU little? with a us on have we X be for that value the never that the it price might, It

for us concerned imports, there back that's the idea. number the direct not for? your a on I piece, question would that we're such was part to really that -- say, what we same small last of the On

Brooke Roach

or Just to tariffs your whether buying... or opportunities present benefits could not there was that any

Ernie Herrman

sorry. I'm yes. Oh,

So actually in vendors even of that additional as anything. likely bring and advantage what with take goods last could this as create that, for availability the could time, And good us happened we at a what is opportunistically. could scenario bring in can manufacturers of prices because -- early -- and goods advantageous that that's

on happens there's again, if an this where model market novel So -- that's little us. the a when bit for there once in that ultimately, a categories, out is usually, the opportunity the little, chaos certain

John Klinger

just then, on, questioned had chain. the to you supply add And Brooke,

are we quarter, which the So freight bit forecast. our have little headwind anticipating fourth in a of reflected in we

Operator

next Our Lorraine from come Hutchinson question will America. Bank with of

Lorraine Maikis

composition Ernie, changes the of that the by cohort? any customers age comp recent Can in be quarters transactions. that new you've driven by you're or down in signs trade talk income to of continues level, seen to the and you gaining and customer

Ernie Herrman

team, Right. it's the of this interesting, No, look we great Lorraine. marketing team question, at -- We and all the John, time.

trade love the age we income groups it's and balanced income by for one a as the is about of I but segment is XX age, every started have, us. by business, for thing emphasize Lorraine, are would more age of we've That's always younger age talk a in last good growing right? like way groups. how us. the kind XX we terms talked to our have and consistent competitive been banners. years, interestingly few recently our This And has as again, the income bit our have We customers our across And based skewed consistent to of where to breakdown at a we looked over little -- one We are and all we skewing about broadly. advantage of on I

on new that balanced groups of And that's to it's data the some in against continue as proportion different know the we've we're extremely our best a moved recently younger still general on and the looked it. well to yes, that love you on all in allows way to bit, And all our customer this, population. growing demographic as on little We because us the the good, at it across product. base incomes about better, keep age

merchants with all the formats, want store so to groups. emphasize appeal we incomes do we continue And with age way we and that to our different to our

same is And narrow has unlike get kind so -- About part. customers customer younger I the the growth our demographics to what you perspective. on of -- first been think time, I customer other objective on is, base that tell I in your on would retailers to continue, where their from yes, answered a the

trade are broadly. that. We We doing not want continue to to

if So between. customers us still I the don't give in to younger, more up age or older we the want get

to anything so want to And else add you that? John,

John Klinger

better, demographics. best income positive categories we demographics strategy, track. across we good, our income all saw And last With we that the across all trade performance quarter,

Ernie Herrman

is than is I trade -- we we range And competition think wide you you to the this and our hunt this there of of tends do we've competition, for many convenience going our more price mean not about wider treasure only benefit -- what, spoken again, to I that as just create know all mean neat have -- I a and by times. and narrow a competition. future, continue I expand, don't -- after

entertainment because the levels it gifts, think I having us continues especially just it not gifts one for when that -- to convenience different retailers group. one is creating their creates when the not differentiate somebody not it our from convenience, stores, type experience, even, to market, in treasure one group, hunt age creates of other enter we shopping a ourselves income shopping of for to and you're allow future,

have find as somebody are to an experience. well shopping experience to allows as It a going shopping you unexpected what convenient

Operator

hear will Paul Lejuez Next, with we Citi. from

Paul Lejuez

has Two changed we things you, can changed whether view of the just sense. ago, have macro given heard curious quick have ones. that the versus some months three there consumer from you I'm been time on talk last about your if the

XXXX, into expansion early second, level, thinking seeing you're how opportunities if then give if you're you thinking? in an curious the about on a And high challenges how Just you talk peek can consumer? margin at us on can anything or if you're just

John Klinger

in the I'll I'll let then chime Ernie and margin question. start, merchandise on

by health As change plus by We in goes, a customers definite more to really the we're of far we're But think interest has demographic business. income that as gives we long-term merchandising the of consumer the which a again, range, viewing us no or the are again, from that, again, age. is as of the talked of age mentioned, XX again, and you how we when and a strategies over that competitors Ernie XX that, cross-section over Ernie that shop in feel just there's broad to -- consumer really think differentiates either about lot attracting and the population us.

Ernie Herrman

Paul, things. I'll throw in X other

Home. from bullish on the in know But you I last can trend. think per don't we're be since can industry. very your probably at what's you results helpful it a the think based over is Home me is on last question And we're also a on in where thing if see, as macro know see headed X-quarter I few makes of the macro or be quarters. I that's seeing to health a But and the when obviously, the build. Home this on scale, changed if view the don't business for our our I this inconsistent customer, look end, se I know our might quarter continue you is

year. last In with quarter HomeGoods what this did comp thrilled fact, big I very against am past a

way quarters, you can would X would assortment additional but a necessarily to and QX, and And bit say, open of we feeling on Home fashion of a even say, to more we a And merchants bullish to what to that the -- we think taking very There's call. see, for merchants have team, that, shift. now. not last advantage goods, ever-changing the our our is but a would be the way, been our the corporation. to in an so picking stores -- about customers. for up our bit believe eclectic to bit HomeGoods businesses out I'm QX ago. talking executed the that in customers, I talking from that been Home they versus doing say Canada, I've job and look way our proud say, been a teams it I'm for the home Marmaxx, an there few a merchandise collaborative home have over I been I'm across all I seems about of really quarter-by-quarter. I they've put by of QX year fun, But nice also quarters a would talked gain the We've Europe, I last the

Paul Lejuez

And then thoughts? margin for any the year, next on

John Klinger

to to are comp, guidance believe not on in we for giving the improvement, value saying to continue not will we on and resonate I we're top today line we our customers. can consistent offer increases be we value, growth. expense our We're outsized that we've -- no again, the been prepared flat those have lever customers biggest for X% to and very some give When guidance year. next mean, searching up XX assuming basis a the points. X% margin is with But execution merchandise

continue think do. to something will we top we driving that that line that is So

again, call for So fourth the quarter FY give guidance 'XX. on we'll

Operator

Binetti will come Our from next question Michael with Evercore.

Michael Binetti

click Paul's question Maybe on to bit. quarter. Great a just little double

that what be As to John, algorithm improvement durable. into labor few thinking X guidance, what I of and business. start with PAT. we just could to comps margins was year, think know you've you would typical tariffs, to get but a there. a was think basis international thought about speak the more normal items the be on been you about XX should X puts respect And you last mix flat pretax or to the or we don't with you points consider there qualitatively lately seeing thoughts of mentioned I'm maybe curious takes to any guys want I to, year

November. glad to in Marmaxx hear then, on here And Ernie, confidence your

categories If the been What wouldn't you just should Or improved? for it do out of just always from and weather-sensitive categories? weather better? have seeing minute. Or mind is double-clicking it way, a are you think reads on the these early holiday the you Is getting are that working?

Ernie Herrman

yes, know would will more warm. part I last Michael. there, that, that's I of think But wasn't if I start. the your tracked unseasonably I better have weather Marmaxx think we again,

share And so place think a stores. now weather now about -- I number we gift-giving gained script, categories the I as as that's of well have many the if think getting hitting are I you pretty there's hitting. the out a talked mix from of have been think -- bit, weather fresh of so getting as you is and we're strong think look a I typically that a here over goods of particularly now a steadily look in as is Marmaxx I giving of picture perspective years. that way our the our market that where QX, way well with if And And looking helping gift and combination out we the

I mind But that think don't double for it's one. clicking So both. we Thanks that. for -- thanks on

John Klinger

onetime Yes. year, gave have And us part of a tailwind of a the your get this that bit did last question, of a number to items then just to first we little year. back

year much headwind as leveraging year market, -- cost-effective impacted we going as a to X be to a to next We European on we're can business. large There us. comp, into year be able X excuse more. as can higher -- that's this we've this We've able why we Spain be isn't X trying as or that's that X been to So see flow been a really comp. don't me, to on a that being lot as

on more So to we fourth again, go of detail you the comment upfront just I'd what we quarter. see my have until back for

Operator

hear from with Morgan we Next, Stanley. Straton will Alex

Alexandra Straton

guys initial HomeGoods, on focus you Or a strategy? entries profitability of wanted kind pressure? there year. talk Has number something Can were and a of then in that about and announcements are a how that? guys able nice of just number have those you drive super international improvement just comments of I again, years terms about how helpful. or in on the this to changed to level you And been thinking such after to changes the of

Ernie Herrman

Alex. right, All

HomeGoods wanted talent, the roll a have what bit probably would then careful I great heard business margin. a junction will this I before. but we're a about But to is have would always have and if be about core and expansion -- question. businesses. jump not our with we me to where asking, be model, on start talk strategic to which can you've this international dilute here when and me out John get we out of very you you're We've Let The figure at of on this it

emphasize, where -- off-price, timing doing which of different of model, good nobody or And the job so we has a a -- when is all in into have with all the at along been managers entries what's doing job is so on even the of this a have markets we because up like happened time our surfacing at never executives, time to management really from that levels have tenure I the experience way across experience TJX, all top we team's our again, corporation, tenure before. to and

ventures in They wanted then the So do these, that's and jobs. been a teams or been to a people to identify out something have joint their and help nearing allowed work coming I to Spain. And guess, we've opportunities actually could were able with different. new businesses that of retirement handful or to like us me either of make little or them have investments utilize really

with to than ever involved happened these really entertain risk opportunities has So and talent have more we Alex to to I we've what us have where had allow get then the core before. don't is businesses actually

taking for that's point risk core in seeing so businesses. conscious a conscious execution -- you're do away us things And focus really we're corporation make a that's or today. back to Does And where has benefit, go that without our sense? just the board. any the So much talent internationally obviously, different not why there's new X at benefit I across ideas, for that this these our core businesses of business so the

a I retailers have. that is think from the that's differentiator for other us we longevity

John Klinger

the getting -- to of on little color the point beginning back you giving getting to improvement. then more HomeGoods is XXX your which your And on basis question, a

inventory thing expense closure So other we that my But some efficiencies I have talking homegoods.com of we had pieces, against was this favorability. cap that was, seeing the we're supply the And expense division by we is this next last some up some biggest and the we as one didn't again, along offset quarter. inventory freight with cap wage in and weren't year. in the pieces that partially points of year saw said the chain that reversing

Ernie Herrman

in as One total, on the we're talked you're across there before, with about but margins our are asking margin. Alex, home I other healthy bullish board. as in jump thing home that would I And also, home

margins in directionally, about good just and good home feeling margin always quarter see, about John a you our was as we're We're business spoke last where So nice can the in general. especially how and you HomeGoods. feeling

industry obviously, it's retailers also are of and Home, of we're -- has question. more that another where those is fashion to their margins some for that's just do oftentimes do business. an driven which other the with at that challenging in So positive, more eclectic. And Thanks categories

Operator

will next Wells question Our come from Boruchow Fargo. with Ike

Irwin Boruchow

overseas to dig the bit wanted more kind a little on of Just comp. in

One performances a few of the I in guys years, think. best put up you have

comp, level just of Just that macro you Marmaxx curious at XQ? of Europe, dynamic things I it weather of with at of kind favorable? you improved. should it -- of those with normalized, the kind talk Europe. a talked Kind kind changing follow-up in was in it higher a the really robust is maybe could just terms normalizing thing anything regions, be for the comp of better if unfavorable, look was the same should Marmaxx And of assume shifted, of whether when to -- we the kind very a both as after about Australia it? to and the Is well -- kind have you a like where then similar is key expect

John Klinger

international a that excellent a had strong in out. in had Europe Ernie but whether I -- And our also both called the is mean and international comp mean, that portion execution, comp, it's Australia. I comp we

to add more nothing So on that.

As far fourth and as plans our we're the the Marmaxx comp, quarter. again, we continue for to there, execute in confident well

Irwin Boruchow

waned seen with headwind have weighed for like of I in I guess trajectory-wise seasonal a a that comp bit normalization it's what assume as just seasonal has the the question Marmaxx, trend kind business? the the is, benefit, you

Ernie Herrman

Right.

run not so So the going getting to plan I again, all was getting assume -- you're time weather away. think you're at that benefit -- change, from goes what would because, part to X we and the yes, comps we're of a that

Just you're by the yes, exactly right. way,

Just of the way Marmaxx other could kind and the way. -- went that as go other in

environment. I asked, also the about macro think, You

not the and the This really That's same same. still States, environment has Europe. think here much I our same about And changed in macro about -- is thing. the execution weather. more the own then in obviously,

So...

Operator

Next, hear Drbul we Guggenheim. from Bob will with

Robert Drbul

of just up doing can sort you U.S., on the the how on business, HomeSense regions, various Home in Canada, Following time you're some spend Europe?

Ernie Herrman

Yes.

that So in. was really earlier with. I as our the hint across we're in HomeSense, exceptions part, Home seeing we're board area has And every most we've happy fact, the liking been really some through been trying very we're at is healthy. geographic our to business what for

John Klinger

businesses. areas positive And that are Home have we these stores geographic Yes, as across Apparel again, the well. we in we all where includes have the that Home

Ernie Herrman

was And Europe, part right? quarter. stores, the strong right, Last of in family by full way, that John? performance, our the right, That's

also we So more but tweaking ability as pickup we've had think, per mix. execution the there, the in HomeSense with to, by HomeSense as -- We're business been business issues do well. a some in playing forward trouble se, U.S. going there we've recently our not

and separate in geographies. in So things done -- feeling don't give across do home the Home teams, no but our we we've within I good -- some lot Obviously, say that of them in HomeSense credit other good really what -- a versus business, is Australia, we but that there the is, our no business

also that, has that healthy. said Having been

all we do in the yes, go Home our back to indicators I differently. -- again, business So are

just some And our the so approach entire is creative, categories, merchants to I you Even think though as other the in does. much stores. what area there of our different than we area give the this, are have Our in Home what in better, and is seen consumer way, any retailer the best good, collaborate rest throughout by all of Home we're more and overlapping, the eclectic. very

So couldn't be there. happier we're where headed

Robert Drbul

runway And of sort availability seeing areas some Marmaxx business, piece for goods the of of better Great. just in some the your within luxury business, you the the stores? are of

Ernie Herrman

week a but and could moves like only it's bit the we That's don't really there. availability on resource usually for down, limited there, change it's availability of of it mean for We because it's -- that structure as And store to up kind that limited I such has a anything more that us because and bellwether a week. specific, comment base. smaller okay don't literally -- been a use

why us is that comment it's So nature best that that's call best. guess, don't and the as I apart our availability see, probably the business. But can product that And there we you with in in case, better, of sets good, we on it. -- plus, mission would us of really you what have helps

Operator

John Kernan with from question Cowen. will next come Our TD

John Kernan

Good some morning, getting of Footwear, Beauty, they're stores, these to floor it on would looks categories I the When focus other of everybody. Thanks few here. categories to also Consumables, and lot a into for taking elevated you Home like our Accessories. be continue seem space. like question. on like in questions of them A like go

and Home So maybe men's commentary any apparel? categories and just of some ladies on the of outside

Ernie Herrman

John, we freshness doing flow look you And see the of we kind at business, a are or other you a you value, the one and consumable, now part, store of Beauty that in a, businesses a a right which business good area other you I our areas, some most calling of really, on of we Yes. No, for if believe Beauty them question. at the can you're our and or job great in that brands Pet guess are there's we're there. at them many those competition would categories I is home. throughout the observation look consistent Consumables. great yes, -- Obviously, looked would of of our crush do, lot a or the whether that about you an like part can of talk because -- that value great you is see and call businesses. Obviously, you some Consumables. things or every doing many

are at They the of Some line store. the of queue [indiscernible] not. front them up

wouldn't cases, you those, You of very everyone their often even right? ear them, their to think replenish phone or know needs many of -- their though pods

and of all so to and traffic believe believe frequency of continue just we have there. traffic be called that -- the I And very builders they're We visit strong, builders. out they're you things it

when or those well a believe online, are in because pretty form those most categories, of high. the value of extreme as them Retails initial go I you and As there on retail the markups buy are other to

so customer getting in those consumable time they're buying the great something obviously, customer show every exceptional they're in appreciates because And the that value and is way. which, areas, a know we they saving money often

something? where really I'm that out you're glad -- talk there is talk don't about called about as So -- really we there asking you about because piece we Wasn't don't was much. another Apparel actually that or that

John Kernan

wanted core outside the I on -- ladies categories Just to of inventories... talk

Ernie Herrman

Yes. of Outside Home.

John Kernan

leverage of Is would A as expansion? full The as on? it gross What merchandise follow-up price X few to margin the on question a about long-term mark ways. margin merchandise might outside? further Like on different markup, how we X John, simple comps? do margin asked got to driver sell-through, think you the be the opportunity be just long-term

John Klinger

we expense one grab if to there grab mean, that continuing some have say, expense forward top where no line. opportunity the just pull continuing I of see in number the certain started change we growth. mean, outsized see could And areas, we as and that's But the is base; really going share to market lever we expense top Obviously, -- to if model. that in line increases, change that I was to Yes. a if the decreases

Operator

Adrienne with Next, Barclays. Yih we will hear from

Adrienne Yih-Tennant

me add Let my congratulations.

Ernie, So to all say lead always we road off-price.

cleaner. be you for conundrum getting Would trade Or a where be share maybe inventory the that of next backdrop in rather pressured but a the is little here's bit in rather half of and to you. down? you maybe you back bit is relative So you a demand can prices stimulated year in a little by market, a are taking would where environment raise healthier

think I the latter.

think... I

John Klinger

shown mean a are Ernie. -- to I I times customers if that we've people that good, look if we for. don't add looking retailer know are well, troubled, In kind we of to be anything for value, are consistently any economic time, you trade that tend have times if

Ernie Herrman

a have I for is only do, only little on -- me -- I Adrienne. for reasons. cleaner, second the thing thing scenarios healthier think like one, The would I favor the the a different said favor slightly I them guess is environment. I we both your I But haven't little and that. you witnessed

cleaner. the get healthier, what up initial happening So a healthier enough, going a you to doesn't know mean? or but I It this be environment lead to ends lag, meaning aggressively and Do place ultimately a what little -- trend, when the more cleaner is quarter cut, something. chase is meaning retailers healthier might for to believe strangely more have goods retailers be which bit they is you like what when more wholesalers to those tend

inventories, leaner it has been excess innately to even it blush, generally our the would it would like experience think because happened. also -- I So that you though would hasn't lead healthier first

do John's just the in And then you then it's meanwhile, point, you to are but were -- everyone environment -- other prices so. where gap. good, can think for we too So up well can original reasons and saying, the I have maintain we our

one. what I second were on just like saying So personally the you

Adrienne Yih-Tennant

does a in second of that to come How the of coming bit you're a then has housing you're movement, started year for would to work a next imagine is, sort HomeGoods rates really for looks and Home a bit Fed tiny starting down move horizon comping that cycle? little the kind of follow-up see good already bit? cutting pretty I with through. you seeing heroic comp. a And my Are

that, comment John? Or So on Ernie?

Ernie Herrman

Yes.

that -- starting. a think, might right of think I getting know you're be no, there what bit I We little at. Adrienne,

of accessories environment strong Right your more play. starts, the or that lot come believe maybe comp If that, comp. there's where down people the the now if is because that's core to you a that the really probably stale. -- more more more where think own starts. internal team looked be this willing get are rates I bit of I tailwind drove our Homes. year I the even And that not go by big little more think Home a notch, we believe competition believe fresh would a did of has interest for if to execution it's next the I also against point, help a Home mortgage now, their it's And to by of

us shine. think more I allowing even so to And it's

package walk that to you at And now, of so the different categories that from HomeGoods to are -- food look gift we our if a some of the if giftable extremely have you things that holiday signing all our -- right holiday the oriented. in

apart the be we spring, other or think purchases of get about, new your could the you for more are home, given little home your I HomeGoods I all think the biggest new from bit right current biggest economics. and then I the might thing right in competition believe thing now a is to the potentially a is, setting out -- there point believe, by I talking tailwind what of help what now

Operator

Telsey comes from Telsey question final the Group. our day And Dana of with

Dana Telsey

in Madison would house of had what Park weeks HomeGoods terrific journey on couple your marketing in York ago. I HomeGoods, nice look Square results. you say the a New the Congratulations that with of

Ernie Herrman

that's that, yes, saw You great.

Dana Telsey

-- was pictures do terrific. I only it traffic have too. Yes. And It a driver. Not looks

how on as the sales different any shifts as size? are relocations real of marketing, performance thing, -- you the terms of this last new and about a percent of store note think you and holiday seeing forward? going other other in store it think from of So do marketing you is remodels, what just of estate, in How season

Ernie Herrman

our Well, is all, play our to a Yes. on little bit attitude of offense. first marketing, of

the more our you creative, a campaigns. guys marketing up, spending little bit love we're coming we we'd and to which groups love -- So I to would have see but

look haven't consumers us, the already have that's the teams -- customers. think and haven't the what an -- been they first and that be it and and are creative to terrific. we're playing, you your spots think but really at marketing question, always shopped that they're part -- just shoppers obviously, the have I to it value from And we is geared at we're we to seen that going on out shop your breakthrough to then be grab because think understand what to so your to spending the either educating terms TV I additional new of you in playing one spending, what some or of to is trying strong, infrequent of visit need also you're If get us

we're campaigns us. that the after a geared at really entertain And are even consumers coming running of to lot going have really

good John, feeling do So really about want to... that. you

John Klinger

Yes.

the So -- keeping ensuring -- go, relocations staying your estate and fresh. remodels remodels question as we're around we're far as that the the

done retail move positives in And relocations, see they come last matter we no can the opportunity in, years. customer where get a maintaining we're and that not And where means to of the going what they store shopping to lose the over we into to we poor to environment. due so comes definite see same the that into experience when that the a number that area, start then sales better shopping just relocations a we've

Ernie Herrman

safe Thank I thanks time. a of today. quarter would earnings everyone, you our look We February. to you, And And joining on again have for like thank, call your And to us updating Dana. again, for all in fourth holiday. forward everyone

Operator

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

you all disconnect. may Thank for participating. You

The TJX Companies, Inc. (TJX) 20 Nov 242025 Q3 Earnings call transcript