TJX : Q1 Fiscal 2025 Reconciliations of Financials

The TJX Companies, Inc.

Financial Reconciliations

Explanation of Non-GAAP Financial Measures

The Company reports its financial results in accordance with generally accepted accounting principles in the U.S. (GAAP). However, management believes that certain non-GAAP financial measures may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods and between results in prior periods and expectations for future periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that affect overall comparability. Non-GAAP financial measures used in these tables include adjusted net sales, adjusted pretax profit margin, adjusted diluted earnings per share (EPS), adjusted gross margin, adjusted selling, general and administrative expenses, and consolidated inventory on a per store basis, on a constant currency basis. The Company uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance, including relative to others in the market. Management also uses these non-GAAP measures to consider underlying trends of the Company's business, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company's operating results or measuring performance in the same manner as the Company's management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The use of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.

Cautionary Note Regarding Forward-looking Statements

These tables contain forward-looking statements, including the Company's full year Fiscal 2025 outlook. Each forward-looking statement contained within these tables is inherently subject to risks, uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from those expressed or implied by such statement. We cannot guarantee that the results and other expectations expressed, anticipated or implied in any forward-looking statement will be realized. Applicable risks and uncertainties include, among others, execution of buying strategy and inventory management; customer trends and preferences; competition; various marketing efforts; operational and business expansion; management of large size and scale; merchandise sourcing and transport; data security and maintenance and development of information technology systems; labor costs and workforce challenges; personnel recruitment, training and retention; corporate and retail banner reputation; evolving corporate governance and public disclosure regulations and expectations with respect to environmental, social and governance matters; expanding international operations; fluctuations in quarterly operating results and market expectations; inventory or asset loss; cash flow; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; economic conditions and consumer spending; market instability; severe weather, serious disruptions or catastrophic events; disproportionate impact of disruptions during this fiscal year; commodity availability and pricing; fluctuations in currency exchange rates; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors set forth under Item 1A of our most recent Annual Report on Form 10-K, as well as other information we file with the Securities and Exchange Commission ("SEC"). We caution investors, potential investors and others not to place considerable reliance on the forward-looking statements contained in these tables. You are encouraged to read any further disclosures we may make in our future reports to the SEC, available at www.sec.gov, on our website, or otherwise. Our forward-looking statements in these tables speak only as of the date hereof, and we undertake no obligation to update or revise any of these statements, even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Table 1: Reconciliations of Full-Year FY24 and Full-Year FY25 Estimated Guidance

			FY
	Full-Year FY24
		Full-Year FY25 Guidance
			Low	High
Net sales(1)	$54.2	$55.5	$55.9
Y/Y gross sales growth		2%	3%
Adjustments for items impacting comparability
Impact of 53rd week(2)	$(0.9)		-%	-%
Adjusted net sales(1)	$53.3	$55.5	$55.9
Adjusted Y/Y net sales growth		4%	5%

Gross margin	30.0%
Y/Y gross margin growth
Adjustments for items impacting comparability
Impact of 53rd week	(0.1)%
Adjusted gross margin	29.9%
Adjusted Y/Y gross margin growth

30.0%	30.1%
0.0%	0.1%

-%-%

30.0% 30.1%

0.1% 0.2%

Selling, general, and administrative expense	19.3%
Y/Y selling, general, and administrative expense growth
Adjustments for items impacting comparability
Impact of 53rd week	0.0%
Adjusted selling, general, and administrative expense	19.3%
Adjusted Y/Y selling, general, and administrative expense growth

19.3%	19.3%
0.0%	0.0%

-%-%

19.3% 19.3%

0.0% 0.0%

Consolidated pretax profit margin(3)	11.0%
Y/Y consolidated pretax profit margin growth
Adjustments for items impacting comparability
Impact of 53rd week	(0.1)%
Adjusted consolidated pretax profit margin(3)	10.9%
Adjusted Y/Y consolidated pretax profit margin growth

11.0%	11.1%
0.0%	0.1%

-%-%

11.0% 11.1%

0.1% 0.2%

Diluted earnings per share	$3.86
Y/Y diluted earnings per share growth
Adjustments for items impacting comparability
Impact of 53rd week	$(0.10)
Adjusted diluted earnings per share	$3.76
Adjusted Y/Y diluted earnings per share growth

$4.03	$4.09
4%	6%
$-	$-
$4.03	$4.09
7%	9%

Note: Figures may not foot due to rounding.

1. Sales figures presented in billions.
2. The estimated segment impact of the 53rd week is Marmaxx: $0.5; HomeGoods: $0.2; TJX Canada: $0.1; TJX International: $0.1.
3. Consolidated pretax profit margin refers to pretax profit margin for total TJX.

Table 2: Reconciliations of 2H FY24 and 2H FY25 Estimated Guidance

			2H
	2H FY24
		2H FY25 Guidance
			Low	High
Consolidated pretax profit margin(1)	11.6%	11.3%	11.5%
Y/Y consolidated pretax profit margin growth		(0.3)%	(0.1)%
Adjustments for items impacting comparability
Impact of 53rd week	(0.2)%		-%	-%
Adjusted consolidated pretax profit margin(1)	11.4%	11.3%	11.5%
Adjusted Y/Y consolidated pretax profit margin growth		(0.1)%	0.1%

Diluted earnings per share	$2.25
Y/Y diluted earnings per share growth
Adjustments for items impacting comparability
Impact of 53rd week	$(0.10)
Adjusted diluted earnings per share	$2.15
Adjusted Y/Y diluted earnings per share growth

$2.22	$2.26
(1)%	0%
$-	$-
$2.22	$2.26
3%	5%

Note: Figures may not foot due to rounding.

1. Consolidated pretax profit margin refers to pretax profit margin for total TJX.

Table 3: Reconciliations of Segment Sales and Pretax Profit Margin on Constant Currency Basis

Q1 FY25 Actual:	Total TJX	(1)	(2)		TJX	(3)		TJX	(4)
	Marmaxx		HomeGoods		Canada			International
Net sales growth	5.9%	5.2%	5.7%	7.2%		8.8%
Impact of constant currency	(0.2)%		-		-		0.3%			(2.0)%
Net sales growth on a constant currency basis	5.7%	5.2%	5.7%	7.5%		6.8%
Pretax profit margin	11.1%	14.2%	9.5%	12.3%	4.0%
Impact of constant currency	(0.0)%		-		-		0.1%			(0.1)%
Pretax profit margin on a constant currency basis	11.1%	14.2%	9.5%	12.4%	3.9%

Note: Figures may not foot due to rounding.

1. Includes TJ Maxx, Marshalls, and Sierra stores as well as their e-commerce sites.
2. Combination of HomeGoods and Homesense stores.
3. TJX Canada operates the Winners, HomeSense, and Marshalls Canada chains.
4. Our TJX International segment operates the TK Maxx and Homesense chains in Europe and the TK Maxx chain in Australia. TK Maxx in Europe operates in the U.K., Ireland, Germany, Poland, Austria and the Netherlands. Homesense operates in the U.K. and Ireland. TJX International operates three e-commerce sites: tkmaxx.com, tkmaxx.de and tkmaxx.at.

Table 4: Reconciliation of FX Impact on Inventory(1)

Q1 FY25 Actual:	Percent change vs. Q1 FY24
FY25 Consolidated inventory on a per store basis	(5)%
Impact of foreign currency(2)	(0)%
FY25 Consolidated inventory on a per store basis, on a constant currency
basis(2)	(5)%

1. Consolidated inventories on a per store basis, including distribution centers, but excluding inventory in transit, the Company's e-commerce sites, and Sierra stores.
2. Changes in foreign currency exchange rates affect the translation of sales and earnings of the Company's international businesses into U.S. dollars for financial reporting purposes. Changes in currency exchange rates can have a material effect on the magnitude of these translations and adjustments when there is significant volatility in currency exchange rates. Given the global operations of the Company, to facilitate comparability, the Company has provided inventory on a constant currency basis, which assumes a constant exchange rate between periods for translation based on the rate in effect for the prior period.