TJX
#So I'll talk just from a statistical point of view.
In the first quarter, clearly the above-plan comps helped us to improve our mark-downs better than what we would have thought.
So one of the things that you ---+ not always, but tend to have is a good flow-through on mark-downs, especially at the comp levels that we saw.
Our Canadian division has done an exceptional job of ---+ we still had that significant increase in the first quarter.
Having said that, we still had a large impact to the merchandise margin in Canada, but they mitigated a significant amount.
I think that has been a story for the last couple quarters.
But it does get harder and harder as every year you go when the dollar is ---+ the Canadian dollar is down.
I think those are two things we're certainly very pleased about.
I would say also, <UNK>, that as I talked before about the way we balance the mix with more good-better-best, that's been very effective at helping us make improvements on mark-downs as well.
It's helped the turns and it helps our profitability because we're more eclectic, which is what our business is healthier when we do that.
So that's been positive.
And the flow, certainly all divisions have really done an excellent job on maintaining the open-to-buy, as we said on an earlier question, amidst this environment.
When you were asking is there anything related to the buying helping the margins, I think that's certainly a positive, the way we're positioned going forward.
And to be clear, the biggest over-plan flow-through is in the total gross margin line, similar to the fourth quarter where we were up 50 basis points in gross margin, as we were in the first quarter, has been flowing through on the above-plan comps, on the buying and occupancy leverage we get.
So it's a combination of ---+
Good question, <UNK>.
First of all, for Sierra, what we're doing now is obviously opening stores.
The more bullish we get, I think I mentioned this in the script, we feel like there could be some upside for this to be more of a major player in the outdoor space.
What do we need.
We just need some more TJX-izing of the business which we're continuing to do.
We are really getting more involved there with how we're educating that team and we're making some moves to really take it to the next level.
I think the beneficiary in terms of the merchandise from things like businesses that are going out, isn't just also ---+ there's a benefit on real estate, yes.
There's a benefit on merchandise, yes, probably.
But that won't be just for Sierra Trading Post, that will actually be also for potentially Marmaxx sites or HomeGoods sites, because you never know, based on some of those markets.
So our real estate team is very flexible in assessing each situation, no matter what store situation is creating opportunities real estate-wise.
But clearly you could see how the Sports Authority and Sierra thing could relate, I get that.
But no, we're pretty bullish on the Sierra Trading Post business longer term.
We just want to get it into more of our philosophy of business to be less promotional.
I think we've talked about that before.
We're trying to get out of the wild promotional up and down swings because that is not the way we like to retail goods.
We've been focused on buying off-price behind the scenes, buying in an off-price methodology.
But the retail and the right now, I'd say, is halfway on the journey.
Because it's still a little promotional on the website.
The stores are less promotional by the way, if you went to the stores.
So our key there is really we're going to be strengthening the merchandising team and Sierra Trading Post further.
And as well as the planning team, to keep up with the seeds of the potential store growth that we're hoping to have there.
Thank you.
So, <UNK>, let's deal with the first one.
The second one I think <UNK> and I have a question on your second part of your question.
But on the first part, the Trade, we're very pleased with how Trade Secret is beginning the TJX-izing process, I guess you would describe it as, which is I think what you were asking about.
We are putting in a lot of processes and systems, talent from here, from back here.
Again, we've had a handful of people move over there and our head merchant relocated from Canada back a while ago.
So she is making terrific progress.
The division ---+ and she reports to <UNK> McMillan who travels over there frequently and makes sure that we are trying to do the core execution priorities in the business that are important to them.
So we're dealing with stores.
We're dealing with distribution, supply chain.
We're dealing with merchants.
We're dealing with marketing.
We're dealing with HR organizational structure issues to get it set.
Again, not a big business yet.
It is, I would tell you, one of the most exciting environments.
We find Australia to be extremely tailor-made for a TJX prototype and the customers really will gravitate to them.
When we have the right goods, our turns there are much, much improved.
We just right now are trying to get to the point where we can flow the right goods consistently because that's what they're still on the learning curve of.
We've started to look at remodels and we will be opening a logistics center in the near future, because they used to, believe it or not, drop ship their merchandise.
So all good things, though.
All things we knew going in and we're excited about it.
The second part of your question is on the integrate ---+ did you believe that you heard something about Trade Secret or the Home business coming here.
That might have been just the way we said something in the script.
Because there is no plan ---+ no, there is no plan for that.
That is something that we're looking at, is a potential home business only there.
So that's something that we're actually toying with as we speak.
To your point, <UNK>, it's also a natural for there.
Thank you.
Okay, I think we have answered all our questions.
We thank you all for your time today and thank you all for joining us on the call.
