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

John Klinger : And by the way, I’ll just add to what Ernie said. Our ability to offer good, better and best, I mean, really differentiates us from our competition, and we feel it’s a real competitive advantage.

Ernie Herrman : That’s a great point. I didn’t get into that as much on the script. And I know it sometimes in our different investor meetings, we get to talk more about it. But it is I think one of the most key strategic advantages we have. A, the fact that our organization is set up to deliver a good, better, best scenario. And if you look, most retailers around us, very few do that. They’re not — they’re zeroing in on certain demographic segments or certain, which could include age or fashion looks or different price levels. And we don’t do that. And I think that will continue to be a benefit to us over the next five to 10 years, huge.

Operator: Next, you will hear from Dana Telsey.

Dana Telsey : Congratulations on the terrific results. As you think about the real estate profile of the store, have you been a beneficiary of any of the Bed Bath & Beyond locations? And is there at all a difference in performance of the stores, suburban or urban? And then lastly, with the improving trend in HomeGoods, how much of that? Or is anything you can green from the elimination of the departure of Bed Bath & Beyond, that’s also an additive and share enhancement for your home results?

John Klinger : Yes, Dana, thanks for the question. As far as the real estate opportunity, we’ve been — we’ve been on this from the beginning of when retailers start to close stores, and we take the best locations that fit our profile. And we’ll continue to do that as we see stores close. As far as the sales and what we’ve seen, particularly for Marmaxx, we saw very consistent sales performance across income demographic, across geography. And we see ourselves, especially in some of these markets that are more rural is the — as you see more and more closures as the department store of those areas and see opportunity. So as far as the Bed Bath & Beyond gaining market share, they’ve been losing market share for quite a while, and we think we’ve gained it along the way. So it’s sometimes a little bit hard to read that, but we feel that our execution in home has been outstanding, and we’ve been able to take that market share as it comes up.

Ernie Herrman : Yes. So Dana, we think, to John’s point, tough to measure, but we feel as though, yes, we are getting from a Bed Bath & Beyond or — but not just those guys, even some of the I believe we’re getting some business from the online home retailers as well that have been a little inconsistent in their execution. I think that just creates other opportunities. And then everyone — that’s at the store end for demand, we’re talking. The other great — not great. The other good thing is it creates additional supply of buying opportunities. We’ve been talking today about at the retail level, customers need another place to shop. But for our merchants, they get to take advantage of additional supply and we mean even more now to certain vendors because now they have less places for them to sell their goods. So that’s been equally, I guess, beneficial.

Operator: Our next question comes from Corey Tarlowe.

Corey Tarlowe : I had a follow-up on the AUR commentary or ticket I know that it moderated a little bit this quarter. Is the expectation in the guide that it should moderate throughout the rest of the year or perhaps inflect positively as we head into the fourth quarter? And then just as a follow-up on wages. How are you thinking about wages, John, in the outlook throughout the remainder of this year?