Background Information. Updated June

Transcription

1 Background Information Updated June

2 The TJX Companies Overview Only major international off-price apparel and home fashions retailer Over 3,800 retail locations across 9 countries on 3 continents $33.2 billion in revenues in 2016 Generated over $2 billion of free cash flow* in 2016 Returned $2.4 billion to shareholders through dividends and share repurchases Ranked No. 87 in the 2017 Fortune 500 listings Leading Off-Price Retail Banners *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 FYE17 Estimated Store Growth Potential Avg. Store Size (sq. ft.) Primary Classifications Marmaxx 1 (U.S.) 2,221 3,000 29,000 Family Apparel, Home HomeGoods (U.S.) 579 1,000 24,000 Home TJX Canada Winners HomeSense Marshalls ,000 23,000 29,000 Family Apparel, Home Home Family Apparel, Home TJX International 582 1,100 T.K. Maxx (Europe) HomeSense (U.K. only) T.K. Maxx (Australia) ,000 20,000 22,000 Family Apparel, Home Home Family Apparel, Home TOTAL 2 3,812 5,600 1 T.J. Maxx and Marshalls 2 FYE17 Total includes 12 Sierra Trading Post stores 3

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

5 Marshalls (U.S. & Canada) 5

6 HomeGoods (U.S.) 6

7 Sierra Trading Post (U.S.) 7

8 Winners (Canada) 8

9 HomeSense (Canada & United Kingdom) 9

10 T.K. Maxx (United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, Australia) 10

11 What Is Off-Price Retailing? Brand-name merchandise at great values Opportunistic buying Substantially lower prices than department and specialty store regular prices on comparable items Rapidly changing assortments Disciplined inventory management Low cost structure 11

12 Differentiated Shopping Experience Great value = Brand Fashion Price Quality Ever-changing mix of merchandise Treasure hunt experience 12

13 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 13

14 Succeeding In Many Types Of Environments (Consolidated Performance) Net Sales ($ Billions) ,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Total Segment Profit* ($ Millions) 8 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 '17 0 = Recessions 21 consecutive years of earnings per share 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. 14

15 Consolidated Comp Store Sales Consolidated Comparable Store Sales % % FY = Recessions 21 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. 15

16 Long Track Record of Returning Cash to Shareholders $2.4B $2.4B $1.4B $1.6B $1.7B $1.9B $2.1B $1.1B FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 BUYBACKS DIVIDENDS 20 consecutive years of dividend increases 16

17 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 17

18 World-Class Buying Organization >1,000 Associates in our buying organization Located in 11 countries on 4 continents Global sourcing machine Source from a universe of 18,000+ vendors and 100+ countries Expertise developed over many decades Focus on teaching and training 18

19 Global Supply Chain and Distribution Network Developed over the last four decades; supports our off-price buying and our highly integrated, international business Efficient processes and allocation Right product, right stores, right time Invest ahead of sales to build capacity and support growth plans 19

20 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 20

21 One of the Most Flexible Retailers in the World Broad assortment attracts a wide customer demographic Four large divisions function as one TJX All leveraging value Nimbleness to respond to changing customer preferences and market trends 21

22 Driving Traffic and Comp Sales Huge opportunity to gain even more market share Target wide customer demographic / Attract younger customers Leverage global marketing / Integrated approach Increase customer spend Loyalty programs Upgrade shopping experience Differentiating e-commerce to drive online / store traffic Initiatives / Leaders in innovation 22

23 Global Store Growth Potential 6,000 FYE17 Estimated Long Term Potential 5,600 5,000 4,000 3,812* 3,000 2,000 2,221 3,000 1, , ,100 0 Marmaxx (U.S.) HomeGoods (U.S.) TJX Canada TJX International (Europe & *FYE17 total includes 12 Sierra Trading Post stores in the U.S. Australia) Total TJX 23

24 Investing in Growth / Gaining Share New stores and remodels Global supply chain and distribution network IT systems Talent and training New seeds / initiatives - E-commerce (tjmaxx.com, sierratradingpost.com, tkmaxx.com) 24

25 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 Superior financial returns Management strives to surpass goals Growing as a global, value retailer 25

26 The TJX Companies, Inc. Safe Harbor Statement UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: 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 forwardlooking 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; consumer trends and preferences; various marketing efforts; competition; quality and availability of personnel; labor costs and workforce challenges; data security; information systems and new technology; economic conditions and consumer spending; adverse or unseasonable weather; disruptions in the second half of the fiscal year; serious disruptions or catastrophic events; corporate and retail banner reputation; quality, safety and other issues with merchandise; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting principles and interpretations; expanding international operations; sourcing and moving merchandise internationally; commodity availability and pricing or increases in utility, transportation or logistics costs; 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; real estate activities; 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 forwardlooking statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. 26