The TJX Companies, Inc. (TJX) 17 May 232024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the TJX Companies First Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded as of today, May 17, 2023. I would now like to turn the conference call over to Mr. Ernie Herrman, Chief Executive Officer and President of the TJX Companies, Inc. sir. ahead, go Please

Ivy. you, Thank

we begin, comments. some Deb has opening Before

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

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

We the impact international in Reconciliations our our the our other tjx.com. and press our we detailed in measures tjx.com, today to of are exchange discuss measures also foreign non-GAAP posted today’s section results and divisions consolidated release of on website, GAAP website, the of Investors have on Investors section.

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

morning. Good

their center customers by to the recognizing Deb and our who thank and It continued our store, on to our associates is especially life begin dedication. call associates commitment for our and work our to want global everyday distribution bring business John like for today fulfillment our me them is Joining and associates. I’d I strong hard Klinger. to for business their

are quarter firs profitability. above planned and well to pleased Now sales results. I our very strong with am our

which at by our and delivered the and and I the Our comp X% divisions. both Marmaxx, also our of store the I high-end accessories in increases traffic. comp both sales performance apparel saw Further, of pleased am highlight mid particularly across businesses with growth we increases in international company. our driven to comp was sales traffic customer traffic. continued strength the and increase sales at an plan at of overall single-digit customer want

In profit terms of profitability, year and both last our per increased well versus expectations. margin earnings exceeded pre-tax share and

Importantly, performance in first this quarter, merchandise John our to our profitability are earnings year guidance. moment. talk share margin we and raising was healthy. very profit pre-tax will strong With full margin both per a in the

testament am and of a strength business the our with model. collective teams resiliency across a shoppers hunt our whose experience execution treasure the compelling great everyday. off-price values of are results shopping the to quarter our and company first brought flexible I Our very efforts pleased excellent

the product deals did delivering job a advantage product, of marketing. Our the the customer right satisfaction stores at the organization to in great on amazing and of the flowed buyers took right and marketplace time and merchandising

ship and fresh We our are position and the great good and buying our advantage are to of quarter in phenomenal selections start online. second happy with to take environment the a to stores

opportunities profitability the excited to continue of and TJX. gain market the are we and the internationally in we forward, Going share about improve see U.S. to

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

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

sales the of the with sales mid This store we down our as high cycle were comp the As continued quarter. to we ticket business, including sales increased single-digits. comp Overall, accessories, its by customer outsized apparel plan. pandemic. continue sales end our with momentum Ernie home increase our average the up at growth saw driven mentioned, overall during for X% was overall traffic, comp Again, up

sales $XX.X the a constant of ‘XX. a quarter sales first currency On to basis, X%. fiscal TJX increase grew were versus X% up billion, net first quarter

XX.X% year’s our up plan. basis margin cost and due adjusted margin. was points XX again, well better First lower was was basis versus from above driven more than last an to and quarter increase consolidated X.X% Gross XXX strong significantly benefit Once profit up expected. by The was in pre-tax mark-on merchandise of points margin freight buying. we

gross investments were our hedges, in and accrual quarter. shrink Unfavorable the margin first the headwinds year-over-year chain supply to

As shrink fiscal flat in versus a reminder, to planning we are ‘XX fiscal ‘XX.

quarters plans third and in second the an this an in first, year headwind fourth benefit expected expected and the quarter. Our assume

of some our freight pre-tax better-than-expected the basis adjustment, in XX driven And profit was primarily incremental above increased pre-tax store from basis performance a rates XX note an net unanticipated expenses. freight plan SG&A interest of want benefit margin that to by margin due freight benefited this points. income accrual costs. I half initiatives as as was Less profit by increase well points. to timing than wage our

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

Moving increased a quarter to strong store last our over comp first quarter very sales X% divisional increase performance. At Marmaxx, year. a first X%

was traffic. Marmaxx’s Once very points We up versus apparel single-digit high profit including first last a Marmaxx’s increase increase. quarter accessories, comp see margin are basis segment XX Marmaxx’s year. a to XX%, again, mid pleased had in single-digit business, customer

momentum our across traffic We Marmaxx’s consistent are of largest as regions. and were of extremely each pleased sales division with the

capture see continue U.S. for to an market share opportunity to We the Marmaxx across excellent additional

specifically quarter segment up during sales first XXX points. basis sales HomeGoods’ comp the it decreased increase. the margin profit HomeGoods’ continues we store X% XX% as saw first first quarter comp sales outsized quarter pandemic, XXXX’s was X.X%, fiscal cycle to

sales to for improve We of remainder year-over-year HomeGoods’ comp ‘XX. expect fiscal the

home banners. HomeGoods we see continue to share XXXth first market. Homesense and capture our continue We see U.S. to to and In a opportunities terrific both the grow our additional HomeGoods quarter, excellent of opened store the to opportunity

by was XX.X%. up basis currency a comp Canada, margin sales store customer driven on TJX Segment At constant X% profit and were traffic.

the retailer off-price major Canada, from our excellent in customer brick-and-mortar of we benefit awareness As brands. only

to We attract we confident our our continue extremely plans are even up continue to growth well more set banners. shoppers – and we that are

increased At comp business see store comp currency we store constant was especially TJX sales sales outstanding environment. our were and a customer to our up. X% was continue Segment challenging also in It grow and sales in grow, on X.X%. strong macroeconomic TJX European country. to to In great traffic International margin International, continue that and was for a in footprint basis profit Australia,

division profitability our forward, Going we to and our this for as plan to grow infrastructure. countries continue path to leverage footprint improve in we a existing see our

e-commerce, percentage our remains small very As it business. overall, a to of

visit. We continue our new that shoppers sites, brands can new add to and something time to they see every categories so

sheet Moving to versus first down inventory quarter fiscal inventory. X% ‘XX. of Balance was

of from this last balance result year-over-year is due store the We larger about as levels. chain Importantly, decline and feel primarily a year inventory a we sheet our great levels in-transit delays. to saw supply elevated balance

are online We to to take and of buying are that this our stores positioned environment outstanding advantage the and summer. flow we strongly confident fresh assortments

shareholder liquidity finish I’ll our distributions. and with

generated debt. first buyback we returned through of operating billion in the quarter ended million and dividend we $X quarter In quarter, paid After first ended, in quarter, maturing and the million our cash. $XXX we the flow with programs. cash $XXX to For $XXX down the million shareholders

it back to turn Ernie. I’ll Now

highlight and to we a additional growth position like I’d Today, we convinced are our are in why to market confidence great U.S. and that John. in capture internationally. share plans our in Thanks, the

proposition consumers. continue we are our to resonate of with value First, confident will appeal that the

environments, continued great including to our and years, through plus XX has In day us continue believe ever-evolving focus attract past recessionary retail of of the offer periods landscape, we will served every inflation to well extremely Over of on to value kinds banners. through commitment our economic times. retail shoppers each value our an many

Second, advantage. we as treasure differentiated tremendous our experience shopping a hunt see

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

in in The the the see us and our flexibility we marketplace. out opportunities buying flexibility. leaders hottest ourselves Third, best trends to allows seek as of

allow allow span and mix to stores space brands best with flex buying. and individually price support opportunistic good, systems of curated flexibility formats points. a with and our the of to to store us wide a Our Further, better of merchandise our chain supply us fixtures floor our our

of in demographics All age in. operate this of each and allows income us consumers countries attract across wide the we that to

retailers. number bodes attract shopping more category our we of future. Further, millennial Our younger even Z product broad for outsized to to across brands wider believe demographic open to and reach a ability well across income our opportunities us levels offerings can the customers shoppers, for many flex our audience in many than an other believe attract We we a the vast Gen including stores of array product helps which continue up us marketplace.

than see and over we see us grow more our current selecting the to Next, banners real Giving with confidence term X,XXX by approach potential additional estate disciplined global base for opportunities to stores our are locations. the we our our in current just countries. long the store

can’t enough, to enough confident extremely the this growth and there support that emphasize plans. Next marketplace our than in available I are inventory will we more be

continue our last an availability never us year, goods produce to merchandise vendors, a including vendors XX,XXX from X,XXX from of our channels, many Overall merchandise and branded the of sourced quality as new history been and for have in-store, brands universe Over ones. than direct-to-consumer. more approximately throughout buyers including multiple global has online issue

our many vendors buying TJX work power. want to with size, to due In and fact, scale

business their excess a with As very a X,XXX retailer vendors we global growing to and clear their stores, inventory and offer way attractive quickly grow nearly discretely.

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

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

great our We on associates have developing University our organization. of in remain newer and focused the with of leaders decades training We generation other leaders programs. pride next off-price take and many and within TJX experience

deploy and for our allows rotate us our needed and company Our deep pursue divisions geographies, to continue teams between we where of to all strengthens as goals growth. which talent bench

advantage. at look a our I today, I retail the As organization believe is industry best-in-class major

extremely Moving to profitability. first pre-tax and XXXX. pleased expectations fiscal above well our performance our for planned margin with Again, have we increased profit quarter are

We fiscal it will continue are confident to we achieve by ‘XX margin about pre-tax term. to to our and ability long target profit XX.X% over the strive our exceed

to Turning responsibility. corporate

report X to across under and global sustainability We We expect Diversity of XXXX for updated on areas. key this as list to our reporting I Diversity. several that global also business. proud we of our list corporate responsibility pillars: Magazine’s to continue corporate TJX our XXXX Workplaces as corporate named our to of well encourage was year. release and for Best share Newsweek’s later environmental updated you recently TJX.com, with responsibility Greatest our am responsible Employers America’s more focus America’s communities, We for Forbes website, look Workplace, recently these to efforts website,

As global always, to the grateful do our work efforts. around for to corporate responsibility teams globe our I’m the they support

results Summing of organization. up, collective and the terrific associates the strong the all thank strong appeal to values branded about efforts quarter our feel year. highlight our of drove excellent first performance. our continued I again of recognize merchandise, want execution plans great our for across the remainder and whose We our global the

While expertise our am our advantages. will of depth to business I organization’s flexibility the immune not business characteristics model macro off-price important that and our convinced the and is remain factors, of

drive convinced am profitability to well sales to market going for improve we share long forward. growth ahead, a on capture the opportunities have set and up and I traffic, and Looking capitalize are see runway that we

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

Thanks again, Ernie.

to lump XXrd want associates week. that that remind we benefit. yet not I have you pension their releasing, sum of the factors. will all primarily pension by does could impact on start, payout includes of vested To stated offering this this press include are Also, to approximately we participation a lower a of commenced be an fiscal former $X.XX offer, the benefit opportunity ‘XX TJX we ‘XX I be pension guidance their in Before impact as eligible non-cash but anticipate today our settlement pension higher to $X.XX, of who calendar We providing a other negatively or clear, and fiscal EPS rates payout potential payout offer. be impact not charge, could the depending receive

this EPS of the charge and margin exclude settlement from adjusted to expect the pre-tax third our We profit results quarter. in impact potential

Now to guidance. full year our

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

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

assumes over For approximately X% the $XXX This increase of expect from $XX.X full sales the the in be to X% billion additional we year, consolidated billion, revenue a to year. range XXrd million prior guidance expected to $XX.X week. the of

we profitability are full our said, guidance. increasing year Ernie As

XX.X% be the full planning range profit to now year We’re margin of XX.X%. in pre-tax to

expected be expect an points XX.X% margin of Excluding an range profit increase XX.X%. now XXrd pre-tax benefit in pre-tax XX ‘XX represent we X.X%. from points adjusted of basis basis, the of XX-week basis On XX a approximately of the week, fiscal to adjusted this versus margin to profit to XX would

profit guidance year now than points margin see pre-tax a of full basis benefit that will freight Our we XXX from assumes lower expenses. more

earlier, accrual full current is assumption assumption. previously favorable our the some and the in freight pull These, freight ‘XX. initiatives. includes favorability quarter FY This first benefit of Our – driving of our a in includes freight freight freight that we we in increase of along some year expected benefits forward mentioned the the rates benefit with I from

profit guidance in have that buying we continue and also pre-tax assumes incremental headwinds that continued chain investments. will from and benefit year to we better will center full to have wages we supply margin from store a and Our continue see that distribution

Further, last actions year. of we secure the tagging, to pre-tax our In will merchandise quarter, profit casing. to and to remain through guidance assume store more margin continues tethering that similar this shrink took first

We also banners. across prevention presence more increased loss broadly our our

additional our laser-focused look ways and to for on mitigate are impact. shrink the We continue initiatives to

we these the we inventory know reminder, a annual full As a actions won’t of at effect full the the year. of until end count do

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

of result to we’re share $X.XX these per a our year earnings assumptions, As to range a increasing full of guidance $X.XX.

this XX% adjusted expect from per the Excluding of $X.XX share an basis, represent of fiscal week, adjusted XXrd $X.XX per would ‘XX a approximately versus we XX-week to On expected benefit be $X.XX. share an increase of to to range in $X.XX. earnings earnings the of X%

second the quarter. to Moving

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

expect to second to over X% quarter to X% be $XX.X $XX.X in consolidated billion We a sales year. prior range the billion, increase of the

second the from benefit chain planning and significant investments. assumes in guidance a costs X.X%. from margin profit pre-tax also range well It freight X.X% are We to better a from includes be lower This quarter benefit supply of incremental as ongoing to headwinds buying. costs as wage

you pre-tax quarter most the of the quarter, want benefited reversal I second second the looking the margin guidance quarter of a at freight timing When well from we that quarter. and that of pre-tax are Further, margin repeat supply quarter, first that impact our investments. sequentially accrual second favorable in from bigger costs profit versus our a profit first won’t benefit to wage quarter a as chain as remind adjustment expense first expecting – in

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

range up X% X% $X.XX the to in quarter be to of second last year. to versus share per expect We earnings $X.XX,

assumes guidance the our XX.X% of pre-tax range half Lastly, for the second of be XX-week year will the margin profit in that on basis, XX.X%. to a implied

in cash shareholders. the financially operationally making great We returning grow will overall opportunities of on Our a to In simultaneously investments earnings are and range we I sales store outlook to business. share will continue that also closing, to half to that per second X%, take while want plan be up a the in XX-week our advantage to and implies to $X.XX to the business of comp basis, be X% for emphasize $X.XX in our our position, see significant of year. important the both growth we

questions. your Now we happy take are to

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

you. first Thank Lorraine from Our [Operator Instructions] Pease ahead. go comes question Hutchinson.

comment through of growth hoping year? you’re pressures was normal. on the Thank higher expenses of be into you Good which Thank this a next some if type some bit could rates will more would walk you you. perhaps helpful Any SG&A investment? these quantification morning. I the little specific versus of seeing then year you. could one-time that on And than continue because

Lorraine. Thanks, Yes.

will giving through but we’re So of some the guidance, I not you walk components.

of prevention. increased loss in as anticipated investments As continue smaller SG&A less such comments, the is my incremental increase. expect to in includes pressure as we half cost cost this inflation, things and to I prepared wage, have such said for cost incremental number The in a rest but travel, our return the year, wage we of be than normal store headwinds full to that general of

Thank you.

Thank you.

we to of the ahead. Boss. Next, line Matthew will go go Please

really on Great. And Thanks. nice congrats a quarter.

you. Thank

progressed Ernie, So trends can speak new second it, cited. to you reach elaborate could that the that on you’ve younger acquisition? the a customer you like It just of to quarter seen income then what [XX:XX]brawning notably the customer, far You traffic the saw as you picture you customer. so and larger sounds And start stood out that demographic was cited a new quarter?

So seeing. just traffic, maybe that acquisition you’re just and new on elaborate customer then

a consistent, questions. Yes. opportunity Traffic great has for the has this to at, heads good moderate was to and overall. a of little healthy me – It things is Matt, and our a ticket pretty looking we’re one been up, started give bit. Traffic is you

driven we’re we ticket ticket a – traffic, had which bit, bit, the also and It’s there the we this said pick little encouraging we at as And average traffic the business not was we so our relative release, it’s recently more when our we’re the look seeing of to up. trend as way well. by being when is of kind we’re being doing before we where can up in off starting business quite traffic had seeing our rebound down a HomeGoods much to

So these are healthy signs.

do by manage past in that ticket about. up I store that drive bottom we the we way. that, Obviously, these of we’ve we’ve you where are talked and the know the off values about traffic, for on very what in company, talking to We’re were that Matt. bullish the and average the exciting in the signs. not We just it talked want

that customers, customer of New we’re environment. part this you’re B to getting like in Or… think what question, was kind at? new of acquisition getting customer, I talking that your Is that new

exactly. Yes,

could acquisition, seeing as cited you’re on who think just customer, customer new, broad… and I a younger you new elaborate you a If

Yes. And our how That’s then income the about – for age talked new younger I the levels, better, on right? are but a best group. percent I customers demos, good about amount of think now. you So were going we’re getting a talking younger or and while the a of been customers different had good, on

we – which demographics We’re we quality. looks. don’t We conservative, income want be and a also demographics, constant all fashion pigeonholed to don’t one how our or from The want that’s into – go income really all even is any customers traditional. denominator to this thing of after group whether fashion be want looks, merchants

has the customers us across board. So we that is to on give goods we level in gaining up the of about Which advantage buy the the I we and buyers on new does and been floor best. What better, the quality but younger fluctuate fashion customers, what good, yes, that. think competitive put that also income, the consistently talk our never

of at off-price, you When not like many broadly us, and around the us. talking competition I’m don’t look trade them just

one this out have And in strategy years but as go customers, and much do capture are – that purposely never range or meant that the marketing we go consciously the media after more – very the of to are the all customers then degree believe, working to digital they our as have that demographics. after there. And best better customers or go segments course, you are are we would saw of point throw in. I upped and are the customer actually of to that the scope marketing last and the of So either to going working placement teams, for fashion-driven well goods over of that media either They in about where by our potential more more our in is they with bracket know, retailers didn’t media they are handful driving our or what better, that it. a linked the specifically different going they looks a looks we in us many the the is traffic, where, they a for certain way, lower, do of gets But demographic/price in things is which narrow ask different of price more it, the you approach I are across base. their they of in after of place greater good,

about go We our with are purposeful strategic we very and conscious where and media spend.

great So question.

our you lot the to why Sorry, information given a in of of line there, top were I’ve but forward. confidence have some getting a meat going we you lot of of

color. great Best of luck. It’s

Matt. you, Thank

will line Next, Lejuez. Paul Please ahead. of we go to the go

guys. thanks, Hey,

Just that your a last point? you trade any you on demographic are would just at anything versus can curious bit, And your I’m there? performance customer say regional demographic a stores you this differences Ernie, seeing higher-income Thanks. could of that on lower-income stores? talk the And down you about follow-up add performance, if then

year. the the Paul, last seeing is we similar quarter we’re quarter first Yes. first what of what in to were seeing

quarters more first we higher year, So three driver of the through last as demographic the stores being our we of said, seeing of in were areas comp.

we’re – quarter that’s in and well. what first the as seeing we As

the that seeing see the pretty it As really in business. nice geography consistency we’re far Marmaxx so geography, as by by was was consistent, to

can terms or of any in underperformers? by larger some state, Any you – like your detail outperformers of give more states

many I in and us And said, now our By into we stores, are the trade for are of again, moving areas of – is being the geography, read. on demographic like we’re driver But seeing. consistent. right just pretty read so down demographic higher performing comp it’s going things it’s higher hard it Marmaxx. was tough to what stores more in that just There to seeing that

guys. it. Got Good Thanks, luck.

Thank you, Paul.

will go the Straton. go ahead. line of we Next, Please to Alex

Great. I was zoom Marmaxx expectations. outpaced quarter. Thanks have question. the like here. for delivered taking looks in years. looks first wanted Also, of so quarter much the it one the highest a Congrats margin like on you for to number It in on a the guys of there

So I’m to? strategy just of some a of wondering, would that Or price what is through? increase flowing the function result you attribute Thanks. that

I’ll as and Well, off, start John jump well. will in

markdowns it’s a We’ve had of think healthy, I are jump pricing margin. that strategy, do multipronged. you being in? sales want certainly part John, to

Obviously, cost… lower freight

favorability. favorability, freight yes, freight Lower cost

essentially… That’s

Yes, that’s it.

about Honestly, better level good and the reiterate, and feel will we freight buying. expense in have the recapture we continued expected opportunity of we

are that the They a open-to-buy. open-to-buy see as positioning throw they we like show X. the we very And Yes. there across have really else. a – we And something brands. X. the strong about, liquidity flooded we like a Marmaxx have on is, was and performance, you by the It are talked been big really of – Alex, We could it with the on markets on I’ll strong lot many as the just sales, inventory we ships. because as

these lot performance. margins a weave as a their allocation lot achieve of retailers teams other that because to Again, as and bob better, we than that the merchants we really And long-tenured our they much able fact so some were I other merchandise planning that to are. not of and that, combined we advantage are with profit as much have are can’t the broad teams and best so of of – have market, good, in are retailers better think, that world the leverage driving the and

So I play, do. it retailing in think, more the retails gives as us surgically we addressing

Thank you.

will to line ahead. go the Next, Brooke we Roach. of Please go

the and And you ‘XX? our forward pressure between a seeing of you’re wondering outlook the taking the a year? pre-COVID drivers what view better bit year as you I recapturability color freight freight from fiscal How and And freight was ocean question. this does your enter could of if much pull bps you. morning. XXX the more thank impact of freight new provide Good for on the outperformance domestic the contract of FY is Thank versus levels? this how on for approximately you

Yes.

not So some the operational benefit basically, into gave is detail rates. where we’re than us the initiatives in some last say get going But we earlier other the ocean to to than we’re primarily that did have that freight versus expected. forward seeing of year pull favorability

ocean. we a So on our we’re the come intermodal, The at we’re But and those said rates is coming well. particularly congestion the the more implemented of did ocean year been back majority such the carriers The out. roots, less costs truck, when premier are plans rates we little aren’t domestic, that down significantly, plans, in beginning implemented our on to contracts. freight initiatives honestly, seeing come the we’ve have the – domestic the – as I from in seeing the rail fourth as wage the more and that stickier. something going port quarter, have put as our in And the

again, happy mitigate to that anticipate, our So initiatives freight expenses, huge this freight in place the But with. domestic we putting time, at favorability. don’t we’re we’re very

So as faith years. that X recapture of we far expect the as the points last basis recapture, don’t the XXX saw over full we to incremental

you much. very Thank

go of will Next, go we Please ahead. to Laura Champine. the line

better, the that Thanks margins for were little guide of given clarity on a bit shift questions. a lighter. QX expense wanted but bit get to QX is the taking my little I

drivers So you the quantify can that help are just timing-related?

Yes.

second reverse in timing the So will of the first costs quarter. as a out have of majority far those those QX, did And as quarter. we favorable so in – the

quarter, over first freight We in and the benefited quarter. in quarter. are – improvement the had the costs supply wage planning chain last the us the quarter reversal lower that second investment then year, because we basis first anticipate we XXX accrual freight benefit higher in the again, points second lower start and course, And of

versus QX the the main So look those for at QX. – reasons are you when

reversal? did impact from you And the accrual what quantify freight was QX the

No, we did not.

got it. Okay,

go line we go to of Please Next, the Aneesha Sherman. will ahead.

about your increase want your I at not about pick the little up about the down seeing the through seeing where I the It now, Did you. of up. a last throughout an quarter? you. quarter? to trends Thank the and is being that reverse and ticket ask Thank up and basket quarter. as down more exit traffic little bit your patterns like quarter seeing Is you traffic through overall and know a well? sounds geography. you And into basket your moderate. bit is see those rates talked about where is end starting it you to What QX, you by talked traffic differences consistent QX are being coming

Yes.

any your we guidance we other QX on where in have a than seeing consistent by given what good that far Marmaxx were question? we sales got start. pretty are that have And as haven’t We answer as month. Does said the

as Well, more all through, components color month consistent the you traffic could those basket Yes. give by that? a well? and bit on The of are the

comp. on giving transactions detail we not the quarter, the than say, No, other are that to drove the

Got it.

you. Thank Okay.

Yes.

heads our giving The from – before mix based We really one part couple we I I point ticket have of think that’s going that’s and related a been coming that’s X that on of a points, forward, could talked guess but about. come for I am this have you could points, little and notch of everybody. more bit that’s down variance to question I preview could maybe a I just a store. don’t have or within it’s the up Aneesha, is related – a merchandise where ticket know, a a down,

the it get mixes, traffic of growth the our we a more the the trying ticket because make is down We you they the again, whatever ticket. certain That’s hotter on drives what bottom-up businesses and is pricing understand want I strategy ticket come in I then the up me But were to top ticket, bring is the and there. And little priority. a deals are The We was quarters. just and they giving the to We don’t about literally, that that heads value couple line pricing say or mix ticket area, drive a most. right the really that’s which our our could question our next we down when do in just talking buyers, seeing are happening. the lower store points. what our sales And two quarter to a a bus where So, be could determine tending at our of before. right we over lower Based our some assign on. that. don’t is the throughout mix

color. helpful Thank Very you.

to go Please line of ahead. will we Chuck Grom. Next, go the

Thanks for that. Great quarter. Hey.

HomeGoods a Just a wanted you to throughout on little bit, quarter there. focus talked the recovery about

a bit? I stores, wanted dive wondering then these that And decide market share quantity the closing if given could greater So, some of opportunity into reposition to we if Bed business you going Bath little just in the forward? of pending pursue to to that

Okay.

here QX actually as an we year in QX So, seeing into improvement commented look, quarters. of on yes, year-over-year comp over three the the you if is improvement basis. – so a seeing coming next are that business as there what’s And out continuous happening we the on were the we on and going goes seeing Chuck, –

anything that you that in vacated. happening. Bed I feel HomeGoods started as the situation, share to about, what’s believe been do don’t strongly have store, for this. the Again, and talked, they business, we But we the we has always our do they out so Bath of should what we in of location our look Beyond asking you We planning systems don’t of us to beneficiaries. nearby Bed Strategically, only – this we for did. categories lot improving, the more creates our that Beyond off at quarter, what inventory yes, in actually own as more referring we business that’s is of us. the many out and and by in because Bath what In have talking very know opportunity interesting we those doing for. capitalize, do more articles, with can as by how & where on probably We change oh, believe, of Bath are opportunity and and what got category and just grab we knowing. directly category did we are on think other don’t stores in of proactively where a at did are that within it with which to is And can come stood retailers We by go share being market are and Bed what but will to quarter in have are what we was go sales and that’s opportunities category are Beyond them, for you categories. obviously, it the location say, quarter, and it’s we and say, HomeGoods is And we we businesses re-rank like And just seen the do we our this without never about there we experiencing diligent that in market HomeGoods end stores allocation and think our artificially that – name us month And & here, I is market in system we trend. able do this we based are give say to can the we they recently. exactly we & where go did we we

do question. We just situation, We so but great that that. taking are HomeGoods – it brush we store, strategically do so So, to of we select speak. the don’t very very your across like – point, it we to broad it advantage

you. Thank Great.

welcome. You’re

ahead. to Dana the go Please of Telsey. go will line we Next,

and congratulations Good the results. morning on nice everyone

strong sales business of and good does anything compare about U.S. As by to talked you very sales the Australia, and in that you in Europe think are seeing, the international how business where had you category what on to three are the Thank shrink QX quarters? versus seeing see the – side, it much flat you. expect you of first year, do you note? keeping lastly, to benefit how in a for just the And

off Alright. I with then after and and the bit. that merchandise will little Dana, so the I John get thing shrink category a into will start

most we internationally, market consistent – the But the by we seeing clearly, and get are sales the is So, way, we been performer. – what has share. strong data Marmaxx been on seeing have

board in geographies. actually, picking We market three of are those up major all across share the

Europe mention If Canada, Australia guess, average, outperforming or my you on by points. are we or hundreds of basis

is fair know So, There Europe Canada but much on. helping of about have it’s not don’t is the I outperformance. little little and a a closures going also geographies, closure store – Australia, just store amount a as all those – that

ads funky right, up, a to were so coming little I market So, are compare it little a will at they X-year Bed look and then when at because and create some that necessarily downs on tailwind, areas Little out grab. – having are look as not we play read to and closures they of stacks, share like but Bath our they and it. opening, have the a will tough ongoing store we think for John. when & Opening there other X-year our when funky were or Beyond, gets ups that shutdowns those

consistent timing the of by The not closings Correct. and geography. openings were

whole it well, quarter very in good But aren’t Obviously, your is to was – as Marmaxx. the a Europe the as aren’t well, HomeGoods pure first animal. point, Yes, was different – close. numbers

It quarter. Yes. a was strong

yes. quarter, Strong

of the regions branded of the year. in way, to we market those availability they by about think way excited Shrink? the are positioned bode is and balance well, I and so And the are going the – for also liquidity in terms the both

which far increasing shrink hard the year. the are didn’t But using on give uses and laser-focused shrink – tagging, we loss tethering, are initiatives shrink the prevention increased on as for we full just As guidance to goes, cases remind, of our presence.

for on and to merchandise. stores, we look satisfaction. along then, customer our the protect ways our are of We And focused with customer newer the employee in are also very safety continuing course to that

we protected anything the shop sure want that do, an are them easy in and customers So, our that make for we employees to the experience to it’s and customers, store.

– whole risk our discussion, the the based just do that as sure we still which – I ticket, is am ticket to with the back is going to really strategy. has have international talking on That pricing to store I are extremely that slight the going to to clear are our everybody have a in strategy. we bullish and etcetera. mix could Dana, talking jump have about want do our affect of [ph], make pricing on nothing just amount ticket within ability we we about of is that. The categories been also

there things. is where items we are the one other with not different in is and have and two strategy selectively addressing full pricing retails or on here Our been continuing They connected prices certain actually. force,

Canada having through I So, by clear we success on in were you our the sure have that’s Europe. way, pricing Marmaxx, and through talking HomeGoods just make there. to about, our from e-comm businesses. the domestically, business strategy And our which And internationally, it want been they in terrific continue

to was clear. that wanted I make So, sure

Very helpful. you. Thank

you. Thank

will to Please we Next, line of go ahead. go Yih. Adrienne the

execution. Tremendous very Ernie, on you much. Congratulations. Thank had… the Great. last call, you

Thank you.

You’re welcome. Well deserved.

really capacity shine. functional of the is model fully Chase to model and mentioned sort that had now the of the of allowing sort You off-price

questions the the value availability, phase, off-price? of can frontline addressed. shines the then you you of then gives explain the And advantage Thanks. year from much kind just that a as how But which as inventory you just buyers? the up, frontline and on up next some you AURs of then can tremendous get off-price an lot kind open-to-buy, and of go about So, better is more to comparative that, for kind cleans the into a detail through at about how at longevity this follow-on of right, we move visibility

Okay. Very Adrienne. good,

hitting to right right do here. going are crux the what are we well, on of You – you

we here we witnessed going So, some the were you Chase, as thing of coming, inventories. speak, Well, year what are culture, versus talking about is these the first to have Chase ago. so by the a of

transportation to was thought to inbound finding were part would is that it – we be. year a we that last transportation, market. for guesstimate in year, kind availability bigger what and You And the be last of was it the happening the and faster was challenge of can moving the timing trends merchants our of sales was than see going

us textbook take “phenomenal to chasing call year, of this all which it period of those advantage we Whereas for are there. I So, would availability” a dynamics of were little the a situation intersecting, bit in, a less. out had that’s time

with combined and in the we about why So, we I group. experienced, why who have of mean our Chase again, And going think that way. mode feel so by that – the it’s that of division. are to turnover do on in will picture terms little – talented are great dynamic And very that’s we help combined other buyers it. we what – profits, that’s in more actually, so the every tricky I feel not And in, our

created us. or of online in to decrease I on do more a out did has this has branded As vendors to years COVID we more business – key gone partnership than way, ago. want can we brands mean the a retail And a we talked as them and to since the brick-and-mortar, the mean you reliance whether and I have imagine, more market mean before, there, few a think lot in it’s today this to with few ago. on about more of at we It’s years a just

we the than So, also been. add that to knows make it open-to-buy, have them that we allowed today loaded more have is has a we and are important vendor ever and with that community have us into Chase we of a merchandise to lot sure

future So, move potential are why currently, in excited and market top hope. profitability of that’s we line we I the as share excited grab, about where increase continued about forward

that answers about part. think there asking up maybe where inventories. think where vendor you are availability on their Then talks the So, I first community – cleaning I that

mentioned have Yes. I I And that… think Exactly.

even years, top would that. rightfully look one to But at and years earnings couple So, matter most has and companies certainly vendors, still one our with and again, happens you no decades. But grow what them we of less. And about are growth. is, have public need thousand vendor, their year could years are, that that are think Yes, show XX,XXX said they vendors. if and now been for who dealing of

to little try So, they get have inventory they chase inventory are drive still or do, to their almost – situation what a maximize to to business. they no matter reorders an

happens and So, going to out see signs I your point, it they that clean say what in are that’s they but all I a clean rather other just to that happens it will going and always or to vendor nicely. and is certain more dovetails for time, the typically of are similar that season a category their two – To seasons no up come changing. vendors know there. be have at inventory,

constant see desirable zero availability So of a in issue merchandise. I again,

Super helpful, of luck. great to get your insights and best

you. Thank

Boruchow. from Thank you. comes our final Please question ahead. Ike go And

Hey guys.

Let me add congrats. my

Can Just sorry two if year, are for am And I – you the the know taking you you freight year, up in you modeling bps quarter? I then, but plus XXX pre-tax are the this. questions, XXX said in XX Ernie, saying you the margin first QX? give missed was bps points. I what the basis us benefit it for got

comes the means Just last that you thought bps? year, margin’s assume of for upside gross on gross said on is margin now plan that from? up Should margins curious think Is that I that the where up call, XXX bps. kind XXX – the gross the is? we the what

Okay.

both. answer will We

and – on Ike gross as will well. let the John, I margin, So, here John in jump

year. we where guided margin, gross talking the about On you are for the

said raising XX.X%, are it, we the Now, operating that? is margins I at

to prior, on upside trying gross gave like the margin? gross new understand, is you margin I is that what to Yes. annual that was plan

year full that significant say on benefit, Yes. We a right. to we give had gross just margin guidance didn’t a

Okay.

Ike? sense, that Does make

I on had the said call, you guys year. XXX the prior margin guess for basis I of thought gross points

Yes.

the better gross other say we not well. good as have giving seeing we are that to buying gotten freight that We we freight benefit the about or feel are margin than and that

Got it.

Okay. Thank you.

question? And then other what was the

Shrink? question, other The

Tailwind.

the quarter? doing in are We shrink first

Freight tailwind.

about we right. talked Freight, that,

you but was margin. had – on two-part One the question. gross a So

else. was I one something on think

could margin you to possible? we of second for first tell Is first us gross going are was margin I asking Yes. the if you tailwind if year. like it. part the the guide the quarter, But freight and could then in part sounds do it not just to a give the us

initiatives as getting Yes. are mean first I then – our we – as we we from unanticipated we benefit real two coming a freight And earlier were some I had accrual. anticipated, mean were the items. freight than quarter had a those far the goes, of benefit and

Okay. Thank you.

with of I is so to on feeling the would are year that confident which leave was are like why one Ike, XX.X% asking. very for think we we we about catalyst though, And the you – the original the thing are you

feeling for line achieving about we the on where So, margin. bottom we are are good pre-tax that heading profit

Okay. Got it. Thank you.

you. Thank

our last to would And all Okay. That today. for joining you I thank like was question. us

earnings quarter August. updating take will be We Everybody, in again our call you care. second on

you. Thank

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

You all disconnect. may you Thank participating. for