TJX 3Q17 Earnings Call Notes

TJX Companies’ (TJX) CEO Ernie Herrman on Q3 2017 Results

International is next major growth driver

“Our next major growth driver is our enormous global store growth potential. Long-term we see the potential to grow to 5,600 stores with just our current change in just our current markets alone. This represents more than 1,800 additional stores on top of our current base before contemplating the potential of new change or new countries. Further we see e-commerce as a complement to our physical locations and as a way to offer consumers the ability and convenience of shopping with us 24×7.”

No shortage of inventory in the market, which means we can hold less

“The market is ramped up a little bit in terms of more loaded market place across more categories than we have seen in the past. So as much as you will read that we tell you timed up an inventory, we are not running into that situation in terms of market availability in terms of what’s in the wholesale market. So that presents an opportunity for us to where possible run with linear inventories to take advantage closer in on the buying. So hopefully you understand, we are going to try to buy I guess simplifying it more hand to mouth closer in than we were a year ago because of the availability.”

E commerce investment is leveling off

“we don’t as others have we aren’t going in investing at the high service peak. So we are — I guess you would call leveling off on our investments there actually, because we are couple of years in on the tjmax.com business. So again very comfortable, we like the traffic we are getting. We like to sales the way it’s doing and on the flip side as you know what be coming up, be careful on your cost structure. So, in terms of the domestic e-com businesses which are really tjmax.com and STP, we have taken a hard look at the cost structures and making sure that we will keep our investment at a very appropriate level and in fact a leveling off level, I guess would be the best way to describe it.”