TJX Cos FY 1Q17 Earnings Call Notes

Ernie Herrman

The second quarter is off to a solid start

“Looking ahead, the second quarter is off to a solid start. We see many near and long-term growth opportunities in the US and internationally to capture market share. As always, our management team is extremely driven to achieve our plans and we will strive to surpass them.”

We see TJX as a sourcing machine

“we see TJX as a global sourcing machine. We have a world-class global buying organization with over 1000 associates located in 11 countries across four continents. We are proud of our strong corporate culture and remain dedicated to training and developing our buyers and next generation of leaders. Our vendor universe numbers more than 18,000 vendors in 100 plus countries. We take pride in our vendor relationships which we believe are some of the best in retail. With a store base of more than 3600 stores in nine countries, we believe, we are an attractive and increasingly important outlet for vendors.”

See long term potential for 5600 stores

“Long-term, we see the potential for grow to 5600 stores with just our current chains and just our current markets alone. This represents more than 50% store growth or almost 2000 additional stores on top of our current base.”

There’s a lot of merchandise available

“we are in one of those modes right now where one of our most difficult challenge is controlling how much we buy right now, because the markets are plentiful and they are plentiful with spring summer goods coming up. Based on the environment going on that’s probably no surprise.”

Scott Goldenberg

Expecting EPS for full year to be 3.35-3.42

Thanks, Ernie. Now to fiscal 2017 guidance, beginning with the full year. As Ernie mentioned, we are raising our full year diluted earnings per share guidance. We now expect fiscal 2017 earnings per share to be in the range of $3.35 to $3.42, which would be down 1% to 3% versus $3.33 in fiscal 2016.