YEARS - Retail Innovation

40

YEARS OF

DELIVERING

VALUE ...

MORE TO COME

THE TJX COMPANIES, INC. 2016 ANNUAL REPORT

4 DECADES OF GROWTH... 3,800+ STORES 7 RETAIL BANNERS 9 COUNTRIES 3 CONTINENTS ...JUST TODAY

21

STRAIGHT YEARS

OF COMP STORE INCREASES

TO OUR FELLOW SHAREHOLDERS:

We were proud to mark our 40th year as a company in 2016 with another year of terrific performance! We achieved aboveplan comparable store sales and earnings per share results, and are convinced we continued to grow our market share around the world. Our eclectic mix of branded merchandise, at amazing values, is resonating with consumers in all our geographies. We were particularly pleased that customer traffic drove our comparable store sales increases, both on a consolidated basis and at each of our four major divisions. We are confident that we are attracting new shoppers to our stores and that existing customers are visiting more frequently. Marmaxx, our largest division, achieved very strong performance as we brought T.J. Maxx and Marshalls to even more U.S. shoppers. HomeGoods delivered another year of excellent results as we extended the reach of our leading home fashions chain to additional U.S. markets. TJX Canada posted outstanding results while bringing its three chains to more Canadian consumers. TJX International delivered results in line with our expectations in a challenging retail environment while continuing its expansion in our existing European countries and further integrating our Australian chain. We also continued the methodical growth of our U.S. and U.K. e-commerce sites, which we view as another way to drive incremental sales and traffic.

For the year, net sales reached $33.2 billion, up more than $2 billion from 2015. This represents growth of 7%, over a sales increase of 6% in the prior year. Consolidated comparable store sales grew a strong 5%, over a 5% increase last year. Over the last four decades, our steady growth in sales and profit demonstrates the consistency, resiliency and flexibility of our off-price business model. In our history as a company, we have had an annual comparable store sales decline in

only one year. Further, we marked our 21st consecutive year of comparable store sales increases in 2016! Net income in 2016 rose to $2.3 billion and adjusted earnings per share were $3.53, a 6% increase over the prior year.1 While our EPS growth reflected a significant negative impact from wage increases and foreign currency for the second consecutive year, we were pleased to exceed our expectations. Further, merchandise margin increased significantly, on top of a solid increase in the prior year, which again demonstrates the flexibility of our model to succeed in many types of environments. Most importantly, we achieved this increase while continuing to offer our customers excellent values. Overall, we grew total square footage by 4% and opened a total of 198 new stores to end the fiscal year with 3,812 stores. Notably, we did not close any stores in 2016 in a volatile retail environment. Our successful track record over 40 years is a testament to the dedication and commitment of our Associates throughout our long history. At year end, we were very proud to employ approximately 235,000 Associates worldwide.

KEY TJX STRENGTHS

We are the only major international off-price apparel and

home fashions retailer in the world! The key strengths

that we have developed and refined over our 40-year

history give us great confidence in our ability to continue our

successful growth for many years to come. Further, we have

decades of experience training and building talent in the

U.S. and internationally. These elements of our business

also differentiate us from most major retailers and allow us

to operate one of the world's most flexible retail models.

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