The TJX Companies, Inc. (NYSE:TJX) Q2 2024 Earnings Call Transcript

John Klinger : Yes. So as you saw, we did increase the comp. We feel confident about continuing to drive that top line. The other thing that is benefiting us — so in the second quarter and third quarter, we comment on the shrink. So we have just in line with how we accrue, there’s an unfavorable impact in the second and third — first, second and third quarter, and then we have a favorable impact in the fourth quarter. That, along with — we continue to work on our freight initiatives and continue to try to control those costs as much as we can.

Mark Altschwager : And maybe a follow-up for Ernie. This is the first quarter in a while where both Marmaxx and HomeGoods are contributing to the positive comps. I know there’s some noise still with the comparisons in HomeGoods in the back half. But just bigger picture, how should we be thinking about the contribution from HomeGoods versus Marmaxx and a normalized comp algorithm moving forward?

Ernie Herrman : Yes. So Mark, obviously, we won’t give the exact comp we’re thinking further out. However, we do feel we are really hitting pretty much an inflection point in the HomeGoods business, and we’re pretty bullish on the back half here that home will continue to improve on the trend versus the trend that you just saw. We’re feeling good about the opportunity to continue to improve in our home mix. And to your point, will continue to contribute to the TJX with a combination of — with HomeGoods and Marmaxx. Also, just, again, we tend to talk about HomeGoods, specifically, but our home business within our full family stores — so that’s whether in Europe or in Canada and then clearly in T.J. Maxx and Marshalls, our home business there has also — and those businesses has also improved, also good indicator because we used to talk a few years ago about the fact that home when you roll it all up is a key component of the TJX business.

So again, another reason why John and I have talked about as we move forward, that home will continue to be a traffic and sales driver for us over the long term.

Operator: Our next question will come from Marni Shapiro.

Marni Shapiro : Congratulations on a great quarter. If you could just talk a little bit, traffic remains your biggest driver and your marketing has been very, very strong. Can you talk a little bit about has it changed the frequency of how often the shopper is coming to your stores? And are you seeing an increase in your shopper shopping across your different your different boxes. I know you continue to co-locate, but I’m curious if you’re seeing that shopper really move from one concept to the next more than usual?

John Klinger : Yes. It’s hard for us to read that in detail. Just generally looking at the transaction increases that we have, we believe that we are attracting more new customers to our brands. And when you look at how we’re attracting those customers. They tend to be more younger customers, the more Gen Z customers that we’re attracting, which we’re really excited about because that speaks to the longevity that we see, so.

Ernie Herrman : Yes, Marni, the thing I can tell you, even though we can’t get some of that in for — the ones that are cross-shopping do spend more. So it is a goal of ours to go after that. As John said, we have been attracting a disproportionate number of new Gen Z and millennial shoppers, which is what we really look at in terms of future growth because that’s the future higher spend. So when we look out on our strategies for five to seven years, that — and by the way, we purposely go after that. We do compare — what we do get at, we can compare our shoppers against some of the competition. There’s some general data on that, that we look at. And we’ve been feeling really good about all gender and age groups to our stores and all the customers that are skewing younger, and that includes in Europe, Australia, domestically.