Background Information. Updated May

Transcription

1 Background Information Updated May

2 The TJX Companies Overview Only major international off-price apparel and home fashions retailer Over 4,000 retail locations across 9 countries on 3 continents $35.9 billion in revenues in Generated $2 billion of free cash flow 2 in 2017 Returned $2.4 billion to shareholders through dividends and share repurchases Ranked No. 85 in the 2018 Fortune 500 listings Leading Off-Price Retail Banners 1 References to the year 2017 in this presentation denote TJX s Fiscal Year 2018, which began January 29, 2017 and ended February 3, See Reconciliation of Financials in the investor section of tjx.com 2

3 TJX A Portfolio of Four Major Off-Price Divisions Store Count Year End FYE18 Estimated Store Growth Potential Avg. Store Size (sq. ft.) Primary Classifications Marmaxx 1 (U.S.) 2,285 3,000 29,000 Family Apparel, Home HomeGoods 2 (U.S.) (Incl. Homesense) 671 1,400 24,000 Home TJX Canada Winners HomeSense Marshalls ,000 23,000 28,000 Family Apparel, Home Home Family Apparel, Home TJX International 633 1,100 T.K. Maxx (Europe) HomeSense (U.K. & Ireland) T.K. Maxx (Australia) ,000 20,000 22,000 Family Apparel, Home Home Family Apparel, Home TOTAL 3 4,070 6,100 1 T.J. Maxx and Marshalls 2 Long Term potential includes 1,000 HomeGoods and 400 Homesense stores 3 FYE18 Total includes 27 Sierra Trading Post stores

4 T.J. Maxx (U.S.) 4

5 Marshalls (U.S.) 5

6 HomeGoods (U.S.) 6

7 Homesense (U.S.) 7

8 Sierra Trading Post (U.S.) 8

9 Marshalls (Canada) 9

10 Winners (Canada) 10

11 HomeSense (Canada) 11

12 T.K. Maxx (United Kingdom, Ireland, Germany, Poland, Austria, Netherlands) 12

13 HomeSense (United Kingdom & Ireland) 13

14 T.K. Maxx (Australia) 14

15 What Is Off-Price Retailing? Brand-name merchandise at great values Opportunistic buying Substantially lower prices than full-price retailers (including department, specialty and major online retailers) Rapidly changing assortments Disciplined inventory and expense management 15

16 Differentiated Shopping Experience Great value = Brand Fashion Price Quality Ever-changing mix of merchandise Treasure hunt experience Convenient, easy to access locations 16

17 Who Is Our Core Customer? Female Between years old Middle to upper-middle income Fashion and value conscious Shops high-end and moderate department / specialty stores and online 17

18 Succeeding In Many Types Of Environments (Consolidated Performance) Net Sales ($ Billions) ,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Total Segment Profit* ($ Millions) ,500 1, (FYE) 0 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 ' = Recessions Consistent sales and profit growth *Meaning segment profit (generally pre-tax income before general corporate and net interest expense) for the sum of our reporting segments. See the notes to our filed financial statements for more detail. 18

19 Consolidated Comp Store Sales Consolidated Comparable Store Sales % % (FYE) = Recessions 22 consecutive years of comparable store sales growth Comparable store sales for fiscal years commencing in 2005 are on a constant currency basis. Prior years include the impact of foreign exchange to the extent it was applicable. 19

20 Long Track Record of Returning Cash to Shareholders $1.4B $1.6B $1.7B $1.9B $2.1B $2.4B $2.4B $2.4B $1.1B FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 BUYBACKS DIVIDENDS 21 consecutive years of dividend increases 20

21 Major Strengths: Why TJX Is So Well Positioned World-class buying organization Global supply chain and distribution network Leveraging our global presence One of the most flexible retailers in the world 21

22 World-Class Buying Organization >1,000 Associates in our buying organization Located in 12 countries on 4 continents Global sourcing machine Source from a universe of 20,000+ vendors and 100+ countries Expertise developed over many decades Focus on teaching and training Mutually beneficial vendor relationships Access to high-quality, branded merchandise for 41 years! 22

23 Global Supply Chain and Distribution Network Developed over the last four decades; supports our off-price buying and our highly integrated, international business Designed for efficient processes and allocation Right product, right stores, right time Invest ahead of sales to build capacity and support growth plans Decades of off-price knowledge and experience 23

24 Leveraging Our Global Presence Only major international off-price apparel and home fashions retailer in the world Highly integrated, global teams, and international infrastructure developed over decades All divisions leveraging talent, infrastructure, ideas, and expertise Capitalizing on first-mover advantages 24

25 One of the Most Flexible Retailers in the World Broad assortment to attract a wide customer demographic Four large divisions function as one TJX All leveraging value Nimbleness to respond to changing customer preferences and market trends Work with vendors and buy merchandise in many ways 25

26 Driving Traffic and Comp Sales Huge opportunity to gain even more market share Target wide customer demographic / Attract younger customers Leverage multi-banner marketing / Integrated approach Increase customer spend Loyalty programs Upgrade shopping experience Differentiating e-commerce to drive online / store traffic Initiatives / Leaders in innovation 26

27 Global Store Growth Potential 7,000 FYE18 Estimated Long-Term Potential 6,000 6,100 5,000 4,000 4,070 3,000 2,000 1,000 2,285 3,000 1,400 1, Marmaxx (U.S.) HomeGoods & Homesense (U.S.)* TJX Canada *Long-Term Potential includes 1,000 HomeGoods and 400 Homesense stores **FYE18 total includes 27 Sierra Trading Post stores. Sierra Trading Post stores are not included in estimated long-term growth potential TJX International (Europe & Australia) Total TJX** 27

28 Investing in Growth / Gaining Share New stores and remodels Global supply chain and distribution network Technology Talent and training New seeds / initiatives 28

29 Key Investment Points Customer traffic increases tell us consumers are loving our brands and shopping more frequently Convinced we are gaining market share Leveraging our differentiated business model and global presence Investing to support our growth plans Excellent financial returns Management strives to surpass goals Growing around the globe, for today and the future! 29

30 The TJX Companies, Inc. Safe Harbor Statement SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Various statements made in this presentation are forward-looking and involve a number of risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements. The following are some of the factors that could cause actual results to differ materially from the forward-looking statements: execution of buying strategy and inventory management; operational and business expansion and management of large size and scale; customer trends and preferences; various marketing efforts; competition; personnel recruitment, training and retention; labor costs and workforce challenges; data security; information systems and implementation of new technologies; economic conditions and consumer spending; adverse or unseasonable weather; serious disruptions or catastrophic events; corporate and retail banner reputation; quality, safety and other issues with our merchandise; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; expanding international operations; merchandise sourcing and transport; commodity availability and pricing; fluctuations in currency exchange rates; fluctuations in quarterly operating results and market expectations; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; outcomes of litigation, legal proceedings and other legal or regulatory matters; tax matters; disproportionate impact of disruptions in the second half of the fiscal year; real estate activities; inventory or asset loss; cash flow and other factors that may be described in our filings with the Securities and Exchange Commission. We do not undertake to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. IMPORTANT INFORMATION AT WEBSITE: The Company routinely posts information that may be important to investors in the Investors section at tjx.com. The Company encourages investors to consult that section of its website regularly. Reconciliations of Non-GAAP financial measures to GAAP financial measures are available at tjx.com under Reconciliation of Financials. OTHER IMPORTANT INFORMATION: All references to sales, pretax margin and EPS are on a continuing operations basis. 30