The TJX Companies, Inc.

Strong quarter vs plan; profits beat expectations - 2Q consolidated comp sales: +4% (above plan), driven by higher average basket and more customer transactions. - Margin & EPS strength (adjusted): pretax margin 11.9% (+50 bps YoY) and adjusted diluted EPS $1.22 (+11% YoY), both well above plan. - Key drivers: higher merchandise margin (notably tariff favorability) and expense efficiencies/operating leverage, partly offset by contributions to TJX charitable foundations.

Diversification worked—except Marmaxx (execution issue) - Division comps: Marmaxx +1%, while the other three divisions were strong: HomeGoods +7%, TJX Canada +6%, TJX International +7%. - What went wrong at Marmaxx (investor-relevant negative): leadership stated issues were self-inflicted execution problems—specifically insufficient merchandise assortment/mix in some areas, leading to lower transactions (not conversion/price) because shoppers couldn’t buy what they came for. - Status of the fix: management said improvement is already visible starting in August and they are confident of further improvement by Q4 / holiday season; they aim to return toward more “normal” comp cadence but did not lock a precise timeline/number.

Inventory and capital returns - Inventory: up 7% (balance sheet) and up 2% per store, with management describing inventory posture as good and well-positioned. - Shareholder returns: returned $1.3B in the quarter via buybacks and dividends.