TJX FY 2Q17 Earnings Call Notes

Ernie Herrman – Chief Executive Officer and President

Brick and mortar essential

“The customer is clearly telling us that brick-and-mortar retail continues to be an essential part of the shopping experience and certainly when it is executed right with the right values. All of this gives us confidence in our long-term global store growth potential. Across the company, we plan to open approximately 260 stores this year alone.”

3900 stores today

‘Next, with 3,900 plus stores today, we are growing successful business with a global presence in an uncertain retail environment. We saw branded merchandise and vendors know their product will hang next to other great brands in our stores.”

Scott Goldenberg

Average wage pressure going down

Yes. I think a bit in terms of this quarter being somewhat similar the major at Marmaxx you would – in a world where merchandise margins were flat you had no wage pressure or supply chain pressure, you need approximately a three comp to be flat. Clearly, we have had both wage pressure and some average retail pressure. The average wage pressure obviously going down so there will be a little less pressure on the P&L going forward, average retail, Ernie early talked about earlier, so you would clearly need a bit more than a three comp at this point to hold your margins flat given that we still have some wage and some supply chain pressure due to the average retail. But the plans have been put, so I think that answers your question.