TJX COMPANIES INC /DE/ Management’s Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

The Thirteen Weeks (first quarter) Ended April 30, 2022

                                  Compared to
              The Thirteen Weeks (first quarter) Ended May 1, 2021

OVERVIEW

We are the leading off-price apparel and home fashions retailer in the U.S. and
worldwide. Our mission is to deliver great value to our customers every day. We
do this by selling a rapidly changing assortment of apparel, home fashions and
other merchandise at prices generally 20% to 60% below full-price retailers'
(including department, specialty, and major online retailers) regular prices on
comparable merchandise, every day through our stores and five distinctive
branded e-commerce sites. We operate over 4,700 stores through our four main
segments: in the U.S., Marmaxx (which operates T.J. Maxx, Marshalls, tjmaxx.com
and marshalls.com) and HomeGoods (which operates HomeGoods, Homesense and
homegoods.com); TJX Canada (which operates Winners, HomeSense and Marshalls in
Canada); and TJX International (which operates T.K. Maxx, Homesense and
tkmaxx.com in Europe, and T.K. Maxx in Australia). In addition to our four main
segments, Sierra operates sierra.com and retail stores in the U.S. The results
of Sierra are included in the Marmaxx segment.

RESULTS OF OPERATIONS

As an overview of our financial performance, results for the quarter ended
April 30, 2022 include the following:


-Net sales increased 13% to $11.4 billion for the first quarter of fiscal 2023
over last year's first quarter sales of $10.1 billion. As of April 30, 2022, the
number of stores in operation increased 2% and selling square footage increased
1% compared to the end of the first quarter of fiscal 2022.

-U.S. comp store sales growth was flat for the first quarter of fiscal 2023. The
U.S. open-only comp store sales increase was 17% for the comparable period last
year ended May 1, 2021.

-Net sales increased 163% and 41% for TJX International and TJX Canada,
respectively.


-Diluted earnings per share for the first quarter of fiscal 2023 were $0.49,
which included a $218 million impairment on our equity investment in Familia, or
$0.19 per share, versus $0.44 in the first quarter of fiscal 2022.

-Pre-tax margin (the ratio of pre-tax income to net sales) for the first quarter
of fiscal 2023 was 7.5%, which included a negative 1.9 percentage point impact
from the impairment on our equity investment in Familia, and was a 0.3
percentage point increase compared with 7.2% in the first quarter of fiscal
2022.

-Our cost of sales ratio, including buying and occupancy costs, for the first
quarter of fiscal 2023 was 72.1%, a 0.2 percentage point increase compared with
71.9% in the first quarter of fiscal 2022.

-Our selling, general and administrative ("SG&A") expense ratio for the first
quarter of fiscal 2023 was 18.4%, a 2.1 percentage point decrease compared with
20.5% in the first quarter of fiscal 2022.

-Our consolidated average per store inventories, including inventory on hand at
our distribution centers (which excludes inventory in transit) and excluding our
e-commerce sites and Sierra stores, were up 35% on a reported basis and 37% on a
constant currency basis at the end of the first quarter of fiscal 2023.

-During the first quarter of fiscal 2023, we returned $0.9 billion to our
shareholders through share repurchases and dividends.

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Operating Results as a Percentage of Net Sales


The following table sets forth our consolidated operating results as a
percentage of net sales:
                                                           Thirteen Weeks Ended
                                                            April 30,        May 1,
                                                              2022            2021
Net sales                                                          100.0  %  100.0  %
Cost of sales, including buying and occupancy costs                 72.1    

71.9

Selling, general and administrative expenses                        18.4    

20.5

Impairment on equity investment                                      1.9    


Interest expense, net                                                0.2    

0.4

Income before provision for income taxes*                            7.5  % 

7.2 %

*Figures may not foot due to rounding.

Net Sales

Net sales for the quarter ended April 30, 2022 totaled $11.4 billion, a 13%
increase versus last year’s first quarter fiscal 2022 net sales of $10.1
billion
. Net sales from our e-commerce sites combined amounted to less than 3%
of total sales for each of the first quarters of fiscal 2023 and fiscal 2022.


For fiscal 2023, we returned to our historical definition of comparable store
sales, as defined below. While stores in the U.S. were open for all of fiscal
2022, a significant number of stores in TJX Canada and TJX International
experienced COVID-19 related temporary store closures and government-mandated
shopping restrictions during fiscal 2022. Therefore, we cannot measure
year-over-year comparable store sales with fiscal 2022 in these geographies in a
meaningful way. As a result, the comparable stores included in the fiscal 2023
measure consist of U.S. stores only, which we refer to as U.S. comparable store
sales ("U.S. comp store sales") and are calculated against sales for the
comparable periods in fiscal 2022.

Net sales increased 13% for the first quarter of fiscal 2023 compared to the
first quarter of fiscal 2022, primarily due to an increase in average basket
driven by higher average ticket. The increase in net sales also reflects having
a fully open store base for the first quarter of fiscal 2023 compared to
temporary store closures for 14% of the first quarter of fiscal 2022, defined as
the total store days closed due to the COVID-19 pandemic as a percentage of
potential total store days open during the period.

U.S. comp store sales were flat for the first quarter of fiscal 2023 compared to
the first quarter of fiscal 2022. U.S. comp store sales reflects an increase in
average basket driven by higher average ticket as well as an increase in
customer traffic in Marmaxx, partially offset by lower customer traffic in
HomeGoods. For the first quarter ended April 30, 2022, comp store sales growth
in the U.S. was strongest in the South region. Apparel outperformed home
fashions for the first quarter ended April 30, 2022.

As of April 30, 2022, our store count increased 2% and selling square footage
increased 1% compared to the end of the first quarter last year.

Definition of Comp Store Sales


We define comparable store sales, or comp sales, to be sales of stores that have
been in operation for all or a portion of two consecutive fiscal years, or in
other words, stores that are starting their third fiscal year of operation. We
calculated comp store sales on a 52-week basis by comparing the current and
prior year weekly periods that are most closely aligned. Relocated stores and
stores that have changed in size are generally classified in the same way as the
original store, and we believe that the impact of these stores on the
consolidated comp percentage is immaterial.

Sales excluded from comp sales (“non-comp sales”) consist of sales from:

-New stores – stores that have not yet met the comp sales criteria, which
represents a substantial majority of non-comp sales

-Stores that are closed permanently or for an extended period of time

-Sales from our e-commerce sites


We determine which stores are included in the comp sales calculation at the
beginning of a fiscal year and the classification remains constant throughout
that year unless a store is closed permanently or for an extended period during
that fiscal year.

Comp sales of our foreign segments are calculated by translating the current
year's comp sales using the prior year's exchange rates. This removes the effect
of changes in currency exchange rates, which we believe is a more accurate
measure of segment operating performance.

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Comp sales may be referred to as “same store” sales by other retail companies.
The method for calculating comp sales varies across the retail industry,
therefore our measure of comp sales may not be comparable to that of other
retail companies.

We define customer traffic to be the number of transactions in stores and
average ticket to be the average retail price of the units sold. We define
average transaction or average basket to be the average dollar value of
transactions.

Open-Only Comp Store Sales


Due to the temporary closing of stores as a result of the COVID-19 pandemic, our
historical definition of comp store sales was not applicable for fiscal 2022. In
order to provide a performance indicator for its stores, during fiscal 2022, we
temporarily reported open-only comp store sales. Open-only comp store sales
included stores initially classified as comp stores at the beginning of fiscal
2021. This measure reported the sales increase or decrease of these stores for
the days the stores were open in fiscal 2022 against sales for the same days in
fiscal 2020, prior to the emergence of the global pandemic.

Impact of Foreign Currency Exchange Rates


Our operating results are affected by foreign currency exchange rates as a
result of changes in the value of the U.S. dollar or a division's local currency
in relation to other currencies. We specifically refer to "foreign currency" as
the impact of translational foreign currency exchange and mark-to-market of
inventory derivatives, as described in detail below. This does not include the
impact foreign currency exchange rates can have on various transactions that are
denominated in a currency other than an operating division's local currency,
which are referred to as "transactional foreign exchange," and also described
below.

Translation Foreign Exchange


In our consolidated financial statements, we translate the operations of TJX
Canada and TJX International from local currencies into U.S. dollars using
currency rates in effect at different points in time. Significant changes in
foreign exchange rates between comparable prior periods can result in meaningful
variations in assets, liabilities, net sales, net income and earnings per share
growth as well as the net sales and operating results of these segments.
Currency translation generally does not affect operating margins, or affects
them only slightly, as sales and expenses of the foreign operations are
translated at approximately the same rates within a given period.

Mark-to-Market Inventory Derivatives


We routinely enter into inventory-related hedging instruments to mitigate the
impact on earnings of changes in foreign currency exchange rates on merchandise
purchases denominated in currencies other than the local currencies of our
divisions, principally TJX Canada and TJX International. As we have not elected
"hedge accounting" for these instruments, as defined by U.S. generally accepted
accounting principles ("GAAP"), we record a mark-to-market gain or loss on the
derivative instruments in our results of operations at the end of each reporting
period. In subsequent periods, the income statement impact of the mark-to-market
adjustment is effectively offset when the inventory being hedged is received and
paid for. While these effects occur every reporting period, they are of much
greater magnitude when there are sudden and significant changes in currency
exchange rates during a short period of time. The mark-to-market adjustment on
these derivatives does not affect net sales, but it does affect the cost of
sales, operating margins and earnings we report.

Transactional Foreign Exchange


When discussing the impact on our results of the effect of foreign currency
exchange rates on certain transactions, we refer to it as "transactional foreign
exchange". This primarily includes the impact that foreign currency exchange
rates may have on the year-over-year comparison of merchandise margin as well as
"foreign currency gains and losses" on transactions that are denominated in a
currency other than the operating division's local currency. These two items can
impact segment margin comparison of our foreign divisions and we have
highlighted them when they are meaningful to understanding operating trends.

Cost of Sales, Including Buying and Occupancy Costs

Cost of sales, including buying and occupancy costs, as a percentage of net
sales was 72.1% for the first quarter of fiscal 2023, an increase of 0.2
percentage points from 71.9% for the first quarter of fiscal of 2022.

The increase in the cost of sales ratio, including buying and occupancy costs,
was primarily attributable to lower merchandise margin, partially offset by
leverage on occupancy as a result of a higher level of sales in the first
quarter of fiscal 2023 compared to fiscal 2022 and favorable mark-to-market
adjustments on inventory and fuel hedges. Within merchandise margin, strong
markon and a benefit from our pricing initiative were more than offset by
approximately 220 basis points of incremental freight.

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Selling, General and Administrative Expenses


SG&A expenses, as a percentage of net sales, were 18.4% for the first quarter of
fiscal 2023, a decrease of 2.1 percentage points over last year's first quarter
ratio of 20.5%.

The decrease in the SG&A ratio for the first quarter of fiscal 2023 compared to
the same period of fiscal 2022 was primarily driven by store payroll due to a
reduction of COVID-related costs.

Impairment on Equity Investment


During the quarter ended April 30, 2022, due to the Russian invasion of Ukraine,
the Company announced that it has committed to divesting its minority investment
in Familia, an off-price retailer of apparel and home fashions domiciled in
Luxembourg that operates stores in Russia. As a result, we performed an
impairment analysis and concluded that there was an other-than-temporary
impairment of this investment. We recorded an impairment charge of $218 million
representing the entire carrying value of the investment. This charge had a
$0.19 negative impact on earnings per share for the first quarter of fiscal
2023.

Interest Expense, net

The components of interest expense, net are summarized below:

                             Thirteen Weeks Ended
                              April 30,        May 1,
In millions                     2022            2021
Interest expense        $      22.9           $ 47.0
Capitalized interest           (1.6)            (1.1)
Interest (income)              (2.5)            (1.2)
Interest expense, net   $      18.8           $ 44.7


Net interest expense decreased for the first quarter of fiscal 2023 compared to
the same period in fiscal 2022, primarily due to the $2.75 billion pay down of
outstanding debt during fiscal 2022.

Provision for Income Taxes


The effective income tax rate was 31.1% for the first quarter of fiscal 2023
compared to 26.0% for the first quarter of fiscal 2022. The increase in the
effective income tax rate is primarily due to the impairment of our minority
investment stake in Familia, which at this time we estimate to have no
associated tax benefit, and a reduction of excess tax benefits from share-based
compensation, partially offset by the change of jurisdictional mix of profits
and losses and the resolution of various tax matters.

Net Income and Diluted Earnings Per Share


Net income for the first quarter of fiscal 2023 was $0.6 billion, or $0.49 per
diluted share compared with $0.5 billion, or $0.44 per diluted share for the
first quarter of fiscal 2022. The $218 million impairment on our equity
investment in Familia had a $0.19 negative impact on earnings per share for the
first quarter of fiscal 2023.

Segment Information


We operate four main business segments. Our Marmaxx segment (T.J. Maxx,
Marshalls, tjmaxx.com and marshalls.com) and our HomeGoods segment (HomeGoods,
Homesense and homegoods.com) both operate in the United States. Our TJX Canada
segment operates Winners, HomeSense and Marshalls in Canada, and our TJX
International segment operates T.K. Maxx, Homesense and tkmaxx.com in Europe and
T.K. Maxx in Australia. In addition to our four main segments, Sierra operates
sierra.com and retail stores in the U.S. The results of Sierra are included in
the Marmaxx segment.

We evaluate the performance of our segments based on "segment profit or loss,"
which we define as pre-tax income or loss before general corporate expense and
interest expense, net, and certain separately disclosed unusual or infrequent
items. "Segment profit or loss," as we define the term, may not be comparable to
similarly titled measures used by other companies. The terms "segment margin" or
"segment profit margin" are used to describe segment profit or loss as a
percentage of net sales. These measures of performance should not be considered
an alternative to net income or cash flows from operating activities as an
indicator of our performance or as a measure of liquidity.

Presented below is selected financial information related to our business
segments.

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U.S. SEGMENTS

Marmaxx
                                                                           Thirteen Weeks Ended
                                                                                                    April 30,    May 1,
U.S. dollars in millions                                                                              2022        2021
Net sales                                                                                          $  6,872    $ 6,640
Segment profit                                                                                     $    904    $   825
Segment margin                                                                                         13.2  %    12.4  %

Stores in operation at end of period:
T.J. Maxx                                                                                             1,285      1,282
Marshalls                                                                                             1,155      1,147
Sierra                                                                                                   60         52
Total                                                                                                 2,500      2,481
Selling square footage at end of period (in thousands):
T.J. Maxx                                                                                            27,894     27,872
Marshalls                                                                                            26,252     26,187
Sierra                                                                                                  975        853
Total                                                                                                55,121     54,912


Net Sales

Net sales for Marmaxx were $6.9 billion for the first quarter of fiscal 2023, an
increase of 3% compared to $6.6 billion for the first quarter of fiscal 2022.
The increase in the first quarter was driven by a 3% increase from comp store
sales compared to a 12% open-only comp store sales increase in the first quarter
of fiscal 2022. The increase in comp store sales was primarily attributable to
an increase in customer traffic as well as an increase in average basket driven
by higher average ticket. Apparel outperformed home fashions during the quarter
and geographically, comp store sales growth in the quarter was strongest in the
South region.

Segment Profit

Segment profit margin increased to 13.2% for the first quarter of fiscal 2023
compared to 12.4% for the same period last year. The increase in segment margin
was primarily driven by store and distribution center payroll reflecting lower
COVID-related expenses and fewer units processed, partially offset by higher
wage and lower merchandise margin. Within merchandise margin, incremental
freight costs were mostly offset by strong markon and a benefit related to our
pricing initiative.

Our Marmaxx e-commerce sites, tjmaxx.com and marshalls.com, together with
sierra.com, represented less than 3% of Marmaxx’s net sales for the first
quarter of fiscal 2023 and fiscal 2022, and did not have a significant impact on
year-over-year segment margin comparisons.

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HomeGoods
                                                                           Thirteen Weeks Ended
                                                                                                    April 30,    May 1,
U.S. dollars in millions                                                                              2022        2021
Net sales                                                                                          $  2,036    $ 2,142
Segment profit                                                                                     $    122    $   252
Segment margin                                                                                          6.0  %    11.7  %

Stores in operation at end of period:
HomeGoods                                                                                               859        843
Homesense                                                                                                39         39
Total                                                                                                   898        882
Selling square footage at end of period (in thousands):
HomeGoods                                                                                            15,701     15,425
Homesense                                                                                               837        837
Total                                                                                                16,538     16,262


Net Sales

Net sales for HomeGoods were $2.0 billion for the first quarter of fiscal 2023,
a decrease of 5%, compared to $2.1 billion for the first quarter of fiscal 2022.
The decrease in the first quarter represents a 7% decrease from comp store
sales, partially offset by a 2% increase from non-comp store sales. The decrease
in comp store sales was driven by a decrease in customer traffic, partially
offset by an increase in average basket driven by a higher average ticket.
Open-only comp store sales were up 40% for the first quarter of fiscal 2022.

Segment Profit


Segment profit margin decreased to 6.0% for the first quarter of fiscal 2023
compared to 11.7% for the same period last year. The decrease in segment profit
margin was driven by lower merchandise margin, deleverage on lower comp store
sales, primarily in occupancy and administrative costs, investments in supply
chain and higher wage. The decrease in segment profit margin was partially
offset by store and distribution payroll reflecting lower COVID-related expenses
and fewer units processed. Within merchandise margin, approximately 700 basis
points of incremental freight costs and higher markdowns were partially offset
by strong markon and a benefit related to our pricing initiative.

During the third quarter of fiscal 2022, HomeGoods made online shopping
available at www.homegoods.com. The e-commerce site did not have a significant
impact on year-over-year segment margin comparisons for the first quarter of
fiscal 2023, representing less than 1.0% of HomeGoods net sales for the first
quarter of fiscal 2023.

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FOREIGN SEGMENTS

TJX Canada
                                                                           Thirteen Weeks Ended
                                                                                                    April 30,     May 1,
U.S. dollars in millions                                                                              2022         2021
Net sales                                                                                          $  1,082    $     766
Segment profit                                                                                     $    127    $      72
Segment margin                                                                                         11.7  %       9.3  %

Stores in operation at end of period:
Winners                                                                                                 293          284
HomeSense                                                                                               148          143
Marshalls                                                                                               106          103
Total                                                                                                   547          530
Selling square footage at end of period (in thousands):
Winners                                                                                               6,297        6,113
HomeSense                                                                                             2,729        2,644
Marshalls                                                                                             2,220        2,159
Total                                                                                                11,246       10,916


Net Sales

Net sales for TJX Canada were $1.1 billion for the first quarter of fiscal 2023,
an increase of 41% compared to $0.8 billion for the first quarter of fiscal
2022. The increase in net sales reflects having a fully open store base for all
of the first quarter of fiscal 2023, compared to temporary store closures for
25% of the first quarter of fiscal 2022 as a result of the COVID-19 pandemic. In
addition to stores being open for more days in the first quarter of fiscal 2023,
net sales further increased due to an increase in average basket driven by a
higher average ticket.

Segment Profit

Segment profit margin increased to 11.7% for the first quarter of fiscal 2023
compared to 9.3% for the same period last year. The increase for the first
quarter of fiscal 2023 was primarily driven by increased sales due to having a
fully open store base for all of the first quarter of fiscal 2023 compared to
the temporary store closures in the same period in fiscal 2022. This was
partially offset by government programs received in the first quarter of fiscal
2022 and lower merchandise margin. Within merchandise margin, strong markon and
a benefit from our pricing initiative were more than offset by higher freight
costs.


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TJX International
                                                                           Thirteen Weeks Ended
                                                                                                    April 30,    May 1,
U.S. dollars in millions                                                                              2022        2021
Net sales                                                                                          $  1,417    $    539
Segment profit (loss)                                                                              $     13    $   (222)
Segment margin                                                                                          0.9  %    (41.1) %

Stores in operation at end of period:
T.K. Maxx                                                                                               623         604
Homesense                                                                                                77          78
T.K. Maxx Australia                                                                                      70          64
Total                                                                                                   770         746
Selling square footage at end of period (in thousands):
T.K. Maxx                                                                                            12,501      12,160
Homesense                                                                                             1,126       1,142
T.K. Maxx Australia                                                                                   1,231       1,143
Total                                                                                                14,858      14,445


Net Sales

Net sales for TJX International were $1.4 billion for the first quarter of
fiscal 2023, an increase of 163% compared to $0.5 billion for the first quarter
of fiscal 2022. The increase in net sales reflects having a fully open store
base for all of the first quarter of fiscal 2023, compared to temporary store
closings for 69% of the first quarter of fiscal 2022 as a result of the COVID-19
pandemic. In addition to stores being open for more days in the first quarter of
fiscal 2023, net sales further increased due to an increase in average basket,
partially offset by a negative impact due to exchange rates.

E-commerce sales were approximately 4% and 12% of TJX International's net sales
for the first quarters of fiscal 2023 and fiscal 2022, respectively. Our
e-commerce site and stores were fully open for the first quarter of fiscal 2023.
For the first quarter of fiscal 2022, while our e-commerce site remained open,
there were temporary store closures due to the COVID-19 pandemic resulting in an
increased e-commerce contribution.

Segment Profit / (Loss)


Segment profit margin increased to 0.9% for the first quarter of fiscal 2023
compared to loss of (41.1)% for the same period last year. This increase was
primarily driven by additional sales due to having a fully open store base for
all of the first quarter of fiscal 2023 compared to the temporary store closures
in the same period in fiscal 2022. This was partially offset by government
programs received in the first quarter of fiscal 2022 and lower merchandise
margin in fiscal 2023. Within merchandise margin, strong markon was more than
offset by higher markdowns and incremental freight costs.


GENERAL CORPORATE EXPENSE
                                 Thirteen Weeks Ended
                                                          April 30,    May 1,
In millions                                                  2022       2021
General corporate expense                                $       77   $  160


General corporate expense for segment reporting purposes represents those costs
not specifically related to the operations of our business segments. General
corporate expenses are primarily included in SG&A expenses. The mark-to-market
adjustment of our fuel and inventory hedges is included in cost of sales,
including buying and occupancy costs.

The decrease in general corporate expense for the first quarter of fiscal 2023
was primarily driven by favorable mark-to-market adjustments on inventory and
fuel hedges, lower share-based and incentive compensation costs and timing of
funding to TJX's charitable foundations.

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ANALYSIS OF FINANCIAL CONDITION

Liquidity and Capital Resources


Our liquidity requirements have traditionally been funded through cash generated
from operations, supplemented, as needed, by short-term bank borrowings and the
issuance of commercial paper. As of April 30, 2022, there were no short-term
bank borrowings or commercial paper outstanding. We believe our existing cash
and cash equivalents, internally generated funds and our credit facilities,
under which facilities we have $1.5 billion available as of the period ended
April 30, 2022, as described in Note I-Long-Term Debt and Credit Lines of Notes
to Consolidated Financial Statements, are adequate to meet our operating needs
for the foreseeable future.

As of April 30, 2022, we held $4.3 billion in cash. Approximately $1.1 billion
of our cash was held by our foreign subsidiaries with $0.4 billion held in
countries where we intend to indefinitely reinvest any undistributed earnings.
We have provided for all applicable state and foreign withholding taxes on all
undistributed earnings of our foreign subsidiaries in Canada, Puerto Rico,
Italy, India, Hong Kong and Vietnam through April 30, 2022. If we repatriate
cash from such subsidiaries, we should not incur additional tax expense and our
cash would be reduced by the amount of withholding taxes paid.

We monitor debt financing markets on an ongoing basis and from time to time may
incur additional long-term indebtedness depending on prevailing market
conditions, liquidity requirements, existing economic conditions and other
factors. In fiscal 2022 we had used, and in the future we may use, operating
cash flow and cash on hand to repay portions of our indebtedness, depending on
prevailing market conditions, liquidity requirements, existing economic
conditions, contractual restrictions and other factors. As such, we may, from
time to time, seek to retire, redeem, prepay or purchase our outstanding debt
through redemptions, cash purchases, prepayments, refinancings and/or exchanges,
in open market purchases, privately negotiated transactions, by tender offer or
otherwise. If we use our operating cash flow and/or cash on hand to repay our
debt, it will reduce the amount of cash available for additional capital
expenditures.

Operating Activities


Operating activities resulted in net cash outflows of $0.6 billion for the three
months ended April 30, 2022 and $0.4 billion for the three months ended May 1,
2021.

Operating cash flows decreased compared to fiscal 2022, primarily due to a $0.6
billion decrease in accrued expenses, which was mostly attributable to lower
incentive compensation costs and the repayment of previously deferred COVID
taxes. This decrease was partially offset by net income, excluding the non-cash
charges, which increased operating cashflows by $0.3 billion as compared to the
first quarter of fiscal 2022 and a $0.1 billion decrease in accounts receivables
for the receipt of COVID related government incentives.

Investing Activities


Investing activities resulted in net cash outflows of $0.3 billion for the three
months ended April 30, 2022 and $0.2 billion for the three months ended May 1,
2021. The cash outflows for both periods were driven by capital expenditures.

Investing activities in the first three months of fiscal 2023 primarily
reflected property additions for investments in our distribution centers, new
stores, store improvements and renovations as well as investments in our
offices, including buying and merchandising systems and other information
systems. We anticipate that capital spending for the full fiscal year 2023 will
be approximately $1.7 billion to $1.9 billion. We plan to fund these
expenditures through cash flows from operations.

Financing Activities


Financing activities resulted in net cash outflows of $0.9 billion for the first
three months of fiscal 2023 and net cash outflows of $1.1 billion for the three
months ended May 1, 2021. The cash outflows for fiscal 2023 were primarily
driven by equity repurchases and dividend payments.

Debt

The cash outflows in the first three months of fiscal 2022 were due to the
redemption at par of $750 million principal notes.

Equity


Under our stock repurchase programs, we paid $0.6 billion to repurchase and
retire 9.6 million shares of our stock on a settlement basis in the first three
months of fiscal 2023. As of April 30, 2022, approximately $3.2 billion remained
available under our existing stock repurchase programs. In the first three
months of fiscal 2022 there were no stock repurchases due to the temporary
suspension of our share repurchase program, which was lifted during the second
quarter of fiscal 2022. For further information regarding equity repurchases,
see Note D - Capital Stock and Earnings Per Share of Notes to Consolidated
Financial Statements.

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Dividends


We declared quarterly dividends on our common stock of $0.295 per share in the
first three months of fiscal 2023 and $0.26 per share in the first three months
of fiscal 2022. Cash payments for dividends on our common stock totaled
$0.3 billion for each of the first three months of fiscal 2023 and fiscal 2022.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS


There have been no material changes to the critical accounting estimates as
discussed in TJX's Annual Report on Form 10-K for the fiscal year ended January
29, 2022. For a discussion of accounting standards, see Note A-Basis of
Presentation and Summary of Significant Accounting Policies of Notes to
Consolidated Financial Statements included in TJX's Annual Report on Form 10-K
for the fiscal year ended January 29, 2022 and Note A-Basis of Presentation and
Summary of Significant Accounting Policies of Notes to Consolidated Financial
Statements in this Quarterly Report on Form 10-Q.

FORWARD-LOOKING STATEMENTS


Various statements made in this Quarterly Report on Form 10-Q are
forward-looking and involve a number of risks and uncertainties. All statements
that address activities, events or developments that we intend, expect or
believe may occur in the future are forward-looking statements. The following
are some of the factors that could cause actual results to differ materially
from the forward-looking statements: the ongoing COVID-19 pandemic and
associated containment and remediation efforts; execution of buying strategy and
inventory management; various marketing efforts; customer trends and
preferences; competition; operational and business expansion; management of
large size and scale; merchandise sourcing and transport; labor costs and
workforce challenges; personnel recruitment, training and retention; data
security and maintenance and development of information technology systems;
corporate and retail banner reputation; cash flow; expanding international
operations; fluctuations in quarterly operating results and market expectations;
mergers, acquisitions, or business investments and divestitures, closings or
business consolidations; real estate activities; inventory or asset loss;
economic conditions and consumer spending; market instability; serious
disruptions or catastrophic events; disproportionate impact of disruptions in
the first half of the fiscal year; commodity availability and pricing; adverse
or unseasonable weather; 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 that may be described in our filings
with the Securities and Exchange Commission, including our most recent Annual
Report on Form 10-K filed with the Securities and Exchange Commission. We do not
undertake to publicly update or revise our forward-looking statements even if
experience or future changes make it clear that any projected results expressed
or implied in such statements will not be realized.

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