TJX 1Q15 Earnings Call Notes

Customer traffic drove comp

comp was almost entirely driven by customer traffic and we had a strong increase in units sold. We were also pleased to see a strong increase in our merchandise margins.

Home has been strong

home continued its excellent performance. We have many merchandise and marketing initiatives planned to continue driving sales and traffic as we focus on both our existing customers and reaching new ones

Could grow to 5.5k locations

opportunity to grow to 5,475 stores long-term with just our existing chains in our existing countries and the Netherlands. This would be more than 2,000 additional stores or almost 60% growth over our current base.

3k potential in US

In North America, we continue to see tremendous opportunities for store growth. We see the long-term potential to add over 1,500 new stores on top of our nearly 3,000 stores today. This does not even include the potential of rolling out Sierra Trading Post as the fourth U.S. chain.

Don’t want online sales to cannibalize brick and mortar

As you’ve heard me say before, our approach is to grow smart so that online sales are incremental, not at the expense of our brick-and-mortar business. Eventually, we plan to roll out e-commerce for all of our retail plans. Our goal is to be there for the customer whenever and wherever they want to shop us.

lots of extra inventory from ports

“We’ve had, Courtney, plenty of availability of exciting brands and buys. It’s hard to pinpoint necessarily whether it was due to the port or not. We have to believe that some of it was. So overall, we would say that the market has had a lot of exciting deals for us to take advantage of.”

The availability could also be because the environment is not so strong…

“the availability of goods in the market has been significant. Some of that could be a ramification of business around the environment not being as strong. I would say secondly, we’ve just kind of gone with the playbook, like Carol said, like we normally do. We’ve had good liquidity, good open to buy, and you have a lot of availability.”

Outrageous value

“I honestly think we have outrageous value and that’s what I’m the most excited about.”

March was strongest, but we were strong everywhere

“s far as the February, March, April, obviously, March being the strongest, which was typical. But again, we were strong across all areas in the country, all geographies and all three months were pretty strong.’

We’re not seeing any impact from weaker tourism

“we’re not seeing any impact in tourism. In terms of across the board, our sales, our comps are pretty consistent. So we don’t believe we’re being hit by that at all.’