Tjx Companies Inc 10-Q for FY2024 Q2

Tjx Companies Inc (TJX)

10-Q 2023-08-25 For: 2023-07-29

Added on April 08, 2026

About this 10-Q

Tjx Companies Inc filed this 10-Q on August 25, 2023, covering the quarter ended July 29, 2023 (FY2024 Q2).

Headline figures

Quarter ended July 29, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $12.76B; up 7.7% from $11.84B a year earlier
Net income: $989M; up 22.1% from net income of $810M a year earlier
Diluted EPS: $0.85; up 23.2% from $0.69 a year earlier

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Delaware						04-2207613
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

770 Cochituate Road Framingham, Massachusetts						01701
(Address of principal executive offices)						(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	TJX	New York Stock Exchange


PART I
ITEM 1. Consolidated Financial Statements			3
Consolidated Statements of Income			3
Consolidated Statements of Comprehensive Income			4
Consolidated Balance Sheets			5
Consolidated Statements of Cash Flows			6
Consolidated Statements of Shareholders' Equity			7
Notes To Consolidated Financial Statements			9
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			21
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			32
ITEM 4. Controls and Procedures			32

PART II
ITEM 1. Legal Proceedings			33
ITEM 1A. Risk Factors			33
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			33
ITEM 5. Other Information			33
ITEM 6. Exhibits			33

SIGNATURE			34


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Net sales	$	12,758	$	11,843	$	24,541	$	23,249
Cost of sales, including buying and occupancy costs	8,910		8,571		17,284		16,794





Selling, general and administrative expenses	2,559		2,175		4,797		4,269
Impairment on equity investment	—		—		—		218



Interest (income) expense, net	(38)		11		(75)		30
Income before income taxes	1,327		1,086		2,535		1,938
Provision for income taxes	338		276		655		541
Net income	$	989	$	810	$	1,880	$	1,397
Basic earnings per share	$	0.86	$	0.69	$	1.63	$	1.19
Weighted average common shares – basic	1,148		1,168		1,151		1,173
Diluted earnings per share	$	0.85	$	0.69	$	1.62	$	1.18
Weighted average common shares – diluted	1,161		1,178		1,163		1,184


	Thirteen Weeks Ended
	July 29, 2023		July 30, 2022
Net income	$	989	$	810
Additions to other comprehensive income (loss):
Foreign currency translation adjustments, net of related tax provisions of $1 in fiscal 2024 and $0.4 in fiscal 2023	40		(30)
Reclassifications from other comprehensive income (loss) to net income:

Amortization of prior service cost and deferred gains/losses, net of related tax provisions of $0.1 in fiscal 2024 and $2 in fiscal 2023	1		4

Other comprehensive income (loss), net of tax	41		(26)
Total comprehensive income	$	1,030	$	784


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


	July 29, 2023		January 28, 2023		July 30, 2022
Assets
Current assets:
Cash and cash equivalents	$	4,550	$	5,477	$	3,531

Accounts receivable, net	548		563		556
Merchandise inventories	6,585		5,819		7,083
Prepaid expenses and other current assets	507		478		553
Federal, state and foreign income taxes recoverable	148		119		112
Total current assets	12,338		12,456		11,835
Net property at cost	6,166		5,783		5,390
Non-current deferred income taxes, net	149		158		172
Operating lease right of use assets	9,406		9,086		8,987
Goodwill	95		97		97
Other assets	768		769		610
Total assets	$	28,922	$	28,349	$	27,091
Liabilities
Current liabilities:
Accounts payable	$	4,438	$	3,794	$	4,085
Accrued expenses and other current liabilities	4,244		4,346		3,928
Current portion of operating lease liabilities	1,618		1,610		1,572
Current portion of long-term debt	—		500		500
Federal, state and foreign income taxes payable	17		55		62
Total current liabilities	10,317		10,305		10,147
Other long-term liabilities	915		919		917
Non-current deferred income taxes, net	132		127		67
Long-term operating lease liabilities	8,089		7,775		7,706
Long-term debt	2,861		2,859		2,857
Commitments and contingencies (See Note K)
Shareholders’ equity
Preferred stock, authorized 5,000,000 shares, par value $1, no shares issued	—		—		—
Common stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,144,948,031; 1,155,437,908 and 1,161,886,769 respectively	1,145		1,155		1,162
Additional paid-in capital	—		—		—
Accumulated other comprehensive (loss) income	(551)		(606)		(768)
Retained earnings	6,014		5,815		5,003
Total shareholders’ equity	6,608		6,364		5,397
Total liabilities and shareholders’ equity	$	28,922	$	28,349	$	27,091


	Thirteen Weeks Ended
	Common Stock
	Shares	Par Value $1		Additional Paid-In Capital		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Total
Balance, April 29, 2023	1,150	$	1,150	$	—	$	(592)	$	5,864	$	6,422
Net income	—	—		—		—		989		989

Other comprehensive income, net of tax	—	—		—		41		—		41
Cash dividends declared on common stock	—	—		—		—		(381)		(381)
Recognition of share-based compensation	—	—		36		—		—		36
Issuance of common stock under stock incentive plan and related tax effect	2	2		54		—		(1)		55
Common stock repurchased	(7)	(7)		(90)		—		(457)		(554)
Balance, July 29, 2023	1,145	$	1,145	$	—	$	(551)	$	6,014	$	6,608


In millions	July 29, 2023		July 30, 2022
Balance, beginning of year	$	721	$	685
Deferred revenue	858		852
Effect of exchange rates changes on deferred revenue	1		(3)
Revenue recognized	(916)		(905)
Balance, end of period	$	664	$	629


In millions and net of immaterial taxes	Foreign Currency Translation		Deferred Benefit Costs		Accumulated Other Comprehensive (Loss) Income
Balance, January 29, 2022	$	(488)	$	(199)	$	(687)
Additions to other comprehensive loss:
Foreign currency translation adjustments, net of taxes	(56)		—		(56)

Recognition of net gains/losses on benefit obligations, net of taxes	—		121		121

Reclassifications from other comprehensive loss to net income:

Amortization of prior service cost and deferred gains/losses, net of taxes	—		16		16
Balance, January 28, 2023	$	(544)	$	(62)	$	(606)
Additions to other comprehensive loss:
Foreign currency translation adjustments, net of taxes	54		—		54
Reclassifications from other comprehensive loss to net income:


Amortization of prior service cost and deferred gains/losses, net of taxes	—		1		1
Balance, July 29, 2023	$	(490)	$	(61)	$	(551)


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
Amounts in millions, except per share amounts	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Basic earnings per share:
Net income	$	989	$	810	$	1,880	$	1,397
Weighted average common shares outstanding for basic earnings per share calculation	1,148		1,168		1,151		1,173
Basic earnings per share	$	0.86	$	0.69	$	1.63	$	1.19
Diluted earnings per share:
Net income	$	989	$	810	$	1,880	$	1,397

Weighted average common shares outstanding for basic earnings per share calculation	1,148		1,168		1,151		1,173
Assumed exercise/vesting of stock options and awards	13		10		12		11
Weighted average common shares outstanding for diluted earnings per share calculation	1,161		1,178		1,163		1,184
Diluted earnings per share	$	0.85	$	0.69	$	1.62	$	1.18
Cash dividends declared per share	$	0.3325	$	0.295	$	0.665	$	0.59


In millions		Pay	Receive		Blended Contract Rate	Balance Sheet Location	Current Asset U.S.$		Current (Liability) U.S.$		Net Fair Value in U.S.$ at July 29, 2023
Fair value hedges:
Intercompany balances, primarily debt:

	€	60	£	52	0.8738	Prepaid Exp	$	0.6	$	—	$	0.6
	A$	162	U.S.$	112	0.6926	Prepaid Exp	3.5		—		3.5
	U.S.$	69	£	55	0.8010	Prepaid Exp	2.0		—		2.0
	£	200	U.S.$	244	1.2191	(Accrued Exp)	—		(13.4)		(13.4)
	€	200	U.S.$	219	1.0964	Prepaid Exp / (Accrued Exp)	0.3		(3.3)		(3.0)

Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 3.0M – 3.8M gal per month	Float on 3.0M – 3.8M gal per month		N/A	(Accrued Exp)	—		(2.0)		(2.0)
Intercompany billings in TJX International, primarily merchandise:
	€	107	£	91	0.8526	(Accrued Exp)	—		(0.8)		(0.8)
Merchandise purchase commitments:
	C$	876	U.S.$	655	0.7473	Prepaid Exp / (Accrued Exp)	0.2		(9.0)		(8.8)
	C$	28	€	19	0.6799	Prepaid Exp / (Accrued Exp)	0.1		(0.3)		(0.2)
	£	376	U.S.$	468	1.2462	Prepaid Exp / (Accrued Exp)	0.5		(15.5)		(15.0)
	A$	96	U.S.$	65	0.6810	Prepaid Exp	1.3		—		1.3
	zł	605	£	114	0.1878	(Accrued Exp)	—		(4.4)		(4.4)

	U.S.$	110	€	101	0.9139	Prepaid Exp / (Accrued Exp)	1.3		(0.3)		1.0
Total fair value of derivative financial instruments							$	9.8	$	(49.0)	$	(39.2)


		Amount of (Loss) Gain Recognized in Income by Derivative
	Location of (Loss) Gain Recognized in Income by Derivative	Thirteen Weeks Ended				Twenty-Six Weeks Ended
In millions		July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Fair value hedges:
Intercompany balances, primarily debt	Selling, general and administrative expenses	$	(3)	$	9	$	3	$	33
Economic hedges for which hedge accounting was not elected:

Diesel fuel contracts	Cost of sales, including buying and occupancy costs	10		10		(8)		54
Intercompany billings in TJX International, primarily merchandise	Cost of sales, including buying and occupancy costs	4		0		4		0

Merchandise purchase commitments	Cost of sales, including buying and occupancy costs	(30)		7		(22)		48
(Loss) gain recognized in income		$	(19)	$	26	$	(23)	$	135


Level 1:						Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2:						Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability

Level 3:						Unobservable inputs for the asset or liability


In millions	July 29, 2023		January 28, 2023		July 30, 2022
Land and buildings	$	2,086	$	2,043	$	1,960
Leasehold costs and improvements	4,147		3,874		3,667
Furniture, fixtures and equipment	7,797		7,400		7,080
Total property at cost	$	14,030	$	13,317	$	12,707
Less: accumulated depreciation and amortization	7,864		7,534		7,317
Net property at cost	$	6,166	$	5,783	$	5,390


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
In millions	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Net sales:
In the United States:
Marmaxx	$	7,903	$	7,236	$	15,269	$	14,107
HomeGoods	2,011		1,856		3,977		3,892
TJX Canada	1,223		1,248		2,261		2,330
TJX International	1,621		1,503		3,034		2,920
Total net sales	$	12,758	$	11,843	$	24,541	$	23,249
Segment profit:
In the United States:
Marmaxx	$	1,084	$	933	$	2,112	$	1,837
HomeGoods	175		50		319		172
TJX Canada	192		197		309		324
TJX International	32		105		70		118
Total segment profit	1,483		1,285		2,810		2,451
General corporate expense	194		188		350		265

Impairment on equity investment	—		—		—		218

Interest (income) expense, net	(38)		11		(75)		30
Income before income taxes	$	1,327	$	1,086	$	2,535	$	1,938


In millions and net of immaterial unamortized debt discounts	July 29, 2023		January 28, 2023		July 30, 2022
General corporate debt:
2.500% senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51% after reduction of unamortized debt discount)	$	—	$	500	$	500
2.250% senior unsecured notes, maturing September 15, 2026 (effective interest rate of 2.32% after reduction of unamortized debt discount)	998		997		997
1.150% senior unsecured notes, maturing May 15, 2028 (effective interest rate of 1.18% after reduction of unamortized debt discount)	499		499		499
3.875% senior unsecured notes, maturing April 15, 2030 (effective interest rate of 3.89% after reduction of unamortized debt discount)	496		496		495
1.600% senior unsecured notes, maturing May 15, 2031 (effective interest rate of 1.61% after reduction of unamortized debt discount)	500		500		500
4.500% senior unsecured notes, maturing April 15, 2050 (effective interest rate of 4.52% after reduction of unamortized debt discount)	383		383		383
Total debt	2,876		3,375		3,374
Current maturities of long-term debt, net of debt issuance costs	—		(500)		(500)
Debt issuance costs	(15)		(16)		(17)
Long-term debt	$	2,861	$	2,859	$	2,857


	Thirteen Weeks Ended						Twenty-Six Weeks Ended
U.S. dollars in millions	July 29, 2023			July 30, 2022				July 29, 2023			July 30, 2022
Net sales	$	7,903		$	7,236			$	15,269		$	14,107
Segment profit	$	1,084		$	933			$	2,112		$	1,837
Segment profit margin	13.7		%	12.9		%		13.8		%	13.0		%
Comp store sales	8		%	(2)		%		7		%	0		%
Stores in operation at end of period:
T.J. Maxx								1,305			1,290
Marshalls								1,190			1,157
Sierra								83			62
Total								2,578			2,509
Selling square footage at end of period (in millions):
T.J. Maxx								28			28
Marshalls								27			26
Sierra								1			1
Total								56			55


	Funded Plan				Unfunded Plan
	Thirteen Weeks Ended				Thirteen Weeks Ended
In millions	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Service cost	$	9	$	11	$	0	$	0
Interest cost	18		14		2		1
Expected return on plan assets	(20)		(22)		—		—
Amortization of net actuarial loss and prior service cost	0		5		1		1


Total expense	$	7	$	8	$	3	$	2

	Funded Plan				Unfunded Plan
	Twenty-Six Weeks Ended				Twenty-Six Weeks Ended
In millions	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Service cost	$	17	$	23	$	1	$	1
Interest cost	36		29		3		2
Expected return on plan assets	(40)		(44)		—		—
Amortization of net actuarial loss and prior service cost	0		9		1		2


Total expense	$	13	$	17	$	5	$	5


	Total Number of Shares Repurchased(a)	Average Price Paid Per Share(b)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(c)	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs(c)
April 30, 2023 through May 27, 2023	1,215,308	$	78.17	1,215,308	$	2,948,794,011
May 28, 2023 through July 1, 2023	3,045,032	$	80.46	3,045,032	$	2,703,795,615
July 2, 2023 through July 29, 2023	2,463,325	$	85.25	2,463,325	$	2,493,795,699
Total	6,723,665			6,723,665


1.	I have reviewed this quarterly report on Form 10-Q of The TJX Companies, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


1			the Company’s Form 10-Q for the fiscal quarter ended July 29, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2			the information contained in the Company’s Form 10-Q for the fiscal quarter ended July 29, 2023 fairly presents, in all material respects, the financial condition and results of operations of the Company.






			/s/ Ernie Herrman
			Name: Ernie Herrman Title: Chief Executive Officer and President





			/s/ John Klinger
			Name: John Klinger Title: Chief Financial Officer