Tjx Companies Inc 10-Q for FY2024 Q3

Tjx Companies Inc (TJX)

10-Q 2023-11-29 For: 2023-10-28

Added on April 08, 2026

About this 10-Q

Tjx Companies Inc filed this 10-Q on November 29, 2023, covering the quarter ended October 28, 2023 (FY2024 Q3).

Headline figures

Quarter ended October 28, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $13.27B; up 9.0% from $12.17B a year earlier
Net income: $1.19B; up 12.0% from net income of $1.06B a year earlier
Diluted EPS: $1.03; up 13.2% from $0.91 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			34

SIGNATURE			34


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Net sales	$	13,265	$	12,167	$	37,806	$	35,416
Cost of sales, including buying and occupancy costs	9,139		8,624		26,423		25,418





Selling, general and administrative expenses	2,578		2,185		7,375		6,454
Impairment on equity investment	—		—		—		218



Interest (income) expense, net	(41)		(1)		(116)		29
Income before income taxes	1,589		1,359		4,124		3,297
Provision for income taxes	398		296		1,053		837
Net income	$	1,191	$	1,063	$	3,071	$	2,460
Basic earnings per share	$	1.04	$	0.92	$	2.68	$	2.10
Weighted average common shares – basic	1,144		1,161		1,148		1,169
Diluted earnings per share	$	1.03	$	0.91	$	2.65	$	2.08
Weighted average common shares – diluted	1,158		1,172		1,161		1,180


	Thirteen Weeks Ended
	October 28, 2023		October 29, 2022
Net income	$	1,191	$	1,063
Additions to other comprehensive (loss), net of tax:
Foreign currency translation adjustments, net of related tax provision of $4 in fiscal 2024 and tax benefit of $9 in fiscal 2023	(102)		(65)
Reclassifications from other comprehensive (loss) to net income:

Amortization of prior service cost and deferred gains/(losses), net of related tax provisions of $0.2 in fiscal 2024 and $2 in fiscal 2023	0		4

Other comprehensive (loss), net of tax	(102)		(61)
Total comprehensive income	$	1,089	$	1,002


☒			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


	October 28, 2023		January 28, 2023		October 29, 2022
Assets
Current assets:
Cash and cash equivalents	$	4,290	$	5,477	$	3,365

Accounts receivable, net	560		563		571
Merchandise inventories	8,285		5,819		8,329
Prepaid expenses and other current assets	535		478		582
Federal, state and foreign income taxes recoverable	136		119		142
Total current assets	13,806		12,456		12,989
Net property at cost	6,262		5,783		5,573
Non-current deferred income taxes, net	152		158		174
Operating lease right of use assets	9,289		9,086		8,986
Goodwill	94		97		95
Other assets	748		769		611
Total assets	$	30,351	$	28,349	$	28,428
Liabilities
Current liabilities:
Accounts payable	$	5,425	$	3,794	$	4,993
Accrued expenses and other current liabilities	4,482		4,346		4,084
Current portion of operating lease liabilities	1,682		1,610		1,574
Current portion of long-term debt	—		500		500
Federal, state and foreign income taxes payable	51		55		83
Total current liabilities	11,640		10,305		11,234
Other long-term liabilities	908		919		906
Non-current deferred income taxes, net	133		127		74
Long-term operating lease liabilities	7,976		7,775		7,691
Long-term debt	2,861		2,859		2,858
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 1,140,732,746; 1,155,437,908 and 1,156,263,970 respectively	1,141		1,155		1,156
Additional paid-in capital	—		—		—
Accumulated other comprehensive (loss) income	(653)		(606)		(829)
Retained earnings	6,345		5,815		5,338
Total shareholders’ equity	6,833		6,364		5,665
Total liabilities and shareholders’ equity	$	30,351	$	28,349	$	28,428


	Thirteen Weeks Ended
	Common Stock
	Shares	Par Value $1		Additional Paid-In Capital		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Total
Balance, July 29, 2023	1,145	$	1,145	$	—	$	(551)	$	6,014	$	6,608
Net income	—	—		—		—		1,191		1,191

Other comprehensive (loss), net of tax	—	—		—		(102)		—		(102)
Cash dividends declared on common stock	—	—		—		—		(380)		(380)
Recognition of share-based compensation	—	—		44		—		—		44
Issuance of common stock under stock incentive plan and related tax effect	3	3		119		—		—		122
Common stock repurchased	(7)	(7)		(163)		—		(480)		(650)
Balance, October 28, 2023	1,141	$	1,141	$	—	$	(653)	$	6,345	$	6,833


In millions	October 28, 2023		October 29, 2022
Balance, beginning of year	$	721	$	685
Deferred revenue	1,283		1,259
Effect of exchange rates changes on deferred revenue	(4)		(9)
Revenue recognized	(1,342)		(1,318)
Balance, end of period	$	658	$	617


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	(48)		—		(48)
Reclassifications from other comprehensive (loss) to net income:


Amortization of prior service cost and deferred gains/(losses), net of taxes	—		1		1
Balance, October 28, 2023	$	(592)	$	(61)	$	(653)


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
Amounts in millions, except per share amounts	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Basic earnings per share:
Net income	$	1,191	$	1,063	$	3,071	$	2,460
Weighted average common shares outstanding for basic earnings per share calculation	1,144		1,161		1,148		1,169
Basic earnings per share	$	1.04	$	0.92	$	2.68	$	2.10
Diluted earnings per share:
Net income	$	1,191	$	1,063	$	3,071	$	2,460

Weighted average common shares outstanding for basic earnings per share calculation	1,144		1,161		1,148		1,169
Assumed exercise/vesting of stock options and awards	14		11		13		11
Weighted average common shares outstanding for diluted earnings per share calculation	1,158		1,172		1,161		1,180
Diluted earnings per share	$	1.03	$	0.91	$	2.65	$	2.08
Cash dividends declared per share	$	0.3325	$	0.295	$	0.9975	$	0.8850


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 October 28, 2023
Fair value hedges:
Intercompany balances, primarily debt:

	€	60	£	52	0.8738	(Accrued Exp)	$	—	$	(0.1)	$	(0.1)
	A$	150	U.S.$	104	0.6937	Prepaid Exp	8.4		—		8.4
	U.S.$	69	£	55	0.8010	(Accrued Exp)	—		(2.0)		(2.0)
	£	150	U.S.$	186	1.2396	Prepaid Exp	3.9		—		3.9
	€	200	U.S.$	220	1.1008	Prepaid Exp	7.8		—		7.8

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	Prepaid Exp	2.7		—		2.7
Intercompany billings in TJX International, primarily merchandise:
	€	118	£	102	0.8646	(Accrued Exp)	—		(1.1)		(1.1)
Merchandise purchase commitments:
	C$	773	U.S.$	575	0.7440	Prepaid Exp	16.8		—		16.8
	C$	35	€	24	0.6826	Prepaid Exp / (Accrued Exp)	0.2		(0.1)		0.1
	£	365	U.S.$	458	1.2537	Prepaid Exp / (Accrued Exp)	14.7		(0.1)		14.6
	A$	58	U.S.$	39	0.6677	Prepaid Exp	1.9		—		1.9
	zł	581	£	110	0.1900	(Accrued Exp)	—		(3.6)		(3.6)

	U.S.$	120	€	110	0.9190	(Accrued Exp)	—		(3.2)		(3.2)
Total fair value of derivative financial instruments							$	56.4	$	(10.2)	$	46.2


		Amount of Gain (Loss) Recognized in Income by Derivative
	Location of Gain (Loss) Recognized in Income by Derivative	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
In millions		October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Fair value hedges:
Intercompany balances, primarily debt	Selling, general and administrative expenses	$	26	$	24	$	29	$	57
Economic hedges for which hedge accounting was not elected:

Diesel fuel contracts	Cost of sales, including buying and occupancy costs	2		(1)		(6)		53
Intercompany billings in TJX International, primarily merchandise	Cost of sales, including buying and occupancy costs	(2)		(6)		2		(6)

Merchandise purchase commitments	Cost of sales, including buying and occupancy costs	49		65		27		113
Gain recognized in income		$	75	$	82	$	52	$	217


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	October 28, 2023		January 28, 2023		October 29, 2022
Land and buildings	$	2,097	$	2,043	$	1,984
Leasehold costs and improvements	4,163		3,874		3,744
Furniture, fixtures and equipment	7,843		7,400		7,190
Total property at cost	$	14,103	$	13,317	$	12,918
Less: accumulated depreciation and amortization	7,841		7,534		7,345
Net property at cost	$	6,262	$	5,783	$	5,573


In millions and net of immaterial unamortized debt discounts	October 28, 2023		January 28, 2023		October 29, 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		496
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		3,375
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	$	2,858


	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
U.S. dollars in millions	October 28, 2023			October 29, 2022				October 28, 2023			October 29, 2022
Net sales	$	8,107		$	7,455			$	23,376		$	21,562
Segment profit	$	1,134		$	1,003			$	3,246		$	2,840
Segment profit margin	14.0		%	13.5		%		13.9		%	13.2		%
Comp store sales	7		%	3		%		7		%	1		%
Stores in operation at end of period:
T.J. Maxx								1,317			1,295
Marshalls								1,196			1,171
Sierra								90			72
Total								2,603			2,538
Selling square footage at end of period (in millions):
T.J. Maxx								29			28
Marshalls								27			27
Sierra								1			1
Total								57			56


	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
U.S. dollars in millions	October 28, 2023			October 29, 2022				October 28, 2023			October 29, 2022
Net sales	$	2,208		$	1,948			$	6,185		$	5,840
Segment profit	$	228		$	172			$	547		$	344
Segment profit margin	10.3		%	8.9		%		8.8		%	5.9		%
Comp store sales	9		%	(16)		%		2		%	(12)		%
Stores in operation at end of period:
HomeGoods								914			880
Homesense								54			43
Total								968			923
Selling square footage at end of period (in millions):
HomeGoods								17			16
Homesense								1			1
Total								18			17


	Funded Plan				Unfunded Plan
	Thirteen Weeks Ended				Thirteen Weeks Ended
In millions	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Service cost	$	8	$	13	$	1	$	0
Interest cost	18		15		2		1
Expected return on plan assets	(20)		(23)		—		—
Amortization of net actuarial loss and prior service cost	0		5		0		1


Total expense	$	6	$	10	$	3	$	2

	Funded Plan				Unfunded Plan
	Thirty-Nine Weeks Ended				Thirty-Nine Weeks Ended
In millions	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Service cost	$	25	$	36	$	2	$	1
Interest cost	54		44		5		3
Expected return on plan assets	(60)		(67)		—		—
Amortization of net actuarial loss and prior service cost	0		14		1		3


Total expense	$	19	$	27	$	8	$	7


	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)
July 30, 2023 through August 26, 2023	1,310,947	$	87.72	1,310,947	$	2,378,795,721
August 27, 2023 through September 30, 2023	3,188,393	$	90.95	3,188,393	$	2,088,796,897
October 1, 2023 through October 28, 2023	2,755,465	$	88.91	2,755,465	$	1,843,797,961
Total	7,254,805			7,254,805


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 October 28, 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 October 28, 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