Ladies and gentlemen, thank you for standing by. Welcome to the TJX Companies' First Quarter Fiscal 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] And as a reminder, this conference call is now being recorded, May 21, 2020. I would like to turn the conference call over to Mr. Ernie Herrman, Chief Executive Officer and President of the TJX Companies, Inc. Please go ahead, sir.

Thanks, Jordan. Before we begin, Deb has some opening comments.

Thank you, Ernie, and good morning. The forward-looking statements we make today about the company's results and plans are subject to risks and uncertainties that could cause the actual results and the implementation of the company's plans to vary materially. These risks are discussed in the company's SEC filings including, without limitation, the Form 10-K filed March 27, 2020. Further, these comments, and the Q&A that follows, are copyrighted today by The TJX Companies Inc. Any recording, retransmission, reproduction or other use of the same for profit or otherwise without prior consent of TJX is prohibited and a violation of United States copyright and other laws. Additionally, while we have approved the publishing of a transcript of this call by a third-party, we take no responsibility for inaccuracies that may appear in transcript. Thank you, and now, I'll turn it back over to Ernie.

Good morning. Joining me and Deb on the call is Scott Goldenberg. Let me begin by saying that our hearts are with everyone around the world who has been affected by the COVID-19 global pandemic. When I last spoke with you in February, we could not have foreseen the magnitude of the impact the pandemic has had on the lives of so many, including our associates and their families, customers, and the communities we serve across the globe. These are unprecedented times, and we have made some very difficult decisions as a management team. At the same time, the efforts of our associates to support each other and the business through this health crisis have been remarkable, and I know we will get through it together. TJX has always been and remains a fundamentally very strong company. Throughout our 43-year history we have weathered many challenging economic and retail environments, and I am convinced that we will navigate through this as well. We have a senior management team with decades of TJX and off-price retail experience, and we are fully dedicated to managing through this crisis. We are confident that our flexible business model and abilities to adapt quickly to changing market conditions and customer preferences are critical strengths as we are reopening our business and planning for the continued successful growth of TJX over the long-term. In a moment I'll speak with you about the strong early results we have seen with our initial reopening which has been great to see especially for the teams working so hard on the preparations, as well as our associates who are welcoming back our customers. Moving to our first quarter results, the first quarter began with very strong sales and traffic trends, continuing the earlier strong fourth quarter trends. For the month…

Thanks, Ernie, and good morning everyone. I would like to first echo Ernie's comments and thank our global associates for their flexibility, excellent work, and dedication over the past couple of months. I will start today with a high level overview of our first quarter results. Our first quarter results were significantly impacted by the temporary closure of our stores for approximately half the quarter due to the COVID-19 pandemic. Our revenue fell short of our plans by about $5.5 billion, and we missed out on the merchandized margin we expected on those sales. This accounted for the majority of our pre-tax income variant for our original plan. Additionally as we outlined in the press release today, we had an inventory write down charge of about $500 million. Also, as Ernie mentioned, we continue to pay all of our store and DC associates for a minimum of three weeks after we closed our stores. Further, we kept a large number of associates active to support business continuity, and to be well positioned to reopen our operations. These associate actions resulted in an additional $450 million of payroll while all our stores were closed from March 19 on. In the first quarter, we took a number of actions to reduce expenses, which resulted in about $550 million of cost reductions. It's important to note that these actions began to benefit us later in the first quarter. Additionally, expenses were reduced by approximately another $200 million due to government credits related to paying associates when stores were closed and continuing to pay benefits for furloughed associates. The combination of these expense items I just mentioned net to an additional $200 million of expense in the first quarter. This makes up the remainder of the pretax income variance or plan after the negative…

Thanks, Scott. I want to reiterate my gratitude for our global associates, who have persevered through these challenging times and have supported each other and the company. On our last call, I spoke with you about our corporate responsibility programs. I want to mention that in this environment, our commitment to corporate responsibility remains core to our company and our work in this area continues. Clearly, we are very much looking forward to the time when we are fully open again. Our teams have been working very hard to make our reopening safe and successful and it has been great to be able to welcome back our associates and customers as various regions reopen. While COVID-19 is currently causing significant uncertainty in the world, TJX remains a very strong company. Throughout our long successful track record, we have navigated through many different environments and challenges as a company, which gives us great confidence in today's environment. In recent years, we have gained significant market share across the United States, Canada, Europe, and Australia. We believe we can continue to grow our market share in the long-term as the retail environment evolves. We are convinced that our value mission which has been core to our business since the beginning will continue to resonate with consumers as much as it ever has, and continue to be our enduring retail formula over the short-term, medium-term, and long-term. Now, we are happy to take your questions. To keep the call on schedule, we're going to ask that you please limit your questions to one per person. Thanks, and now we'll open it up for the questions.

Thank you. We will now begin our question-and-answer session. [Operator Instructions] Our first question comes from Matt Boss. Your line is now open.

Great, thanks, and great color, and congrats on the initial reopening strength.

Thank you.

Ernie, maybe to breakdown your overall store reopening productivity, can you just elaborate on some of the performance you're seeing between Marmaxx and HomeGoods, and any material differences you're seeing in the U.S. relative to Europe as stores reopen?

Sure, Matt. Well, there is some color I can give you to that. We mentioned in the script our home business has been particularly strong, and I would say that's consistent. You can extrapolate from that that our HomeGoods business has been even stronger than our Marmaxx business. Having said that, both are clearly exceeding what we had expected would happen when we opened up these boxes. Also, Europe same -- I would say not much of a difference, a similar dynamic in Europe. Kind of went in a little bit of a different order, Matt. So let me give you a little of how this all transpired so you get a viewpoint on what I'm talking about with some of these sales trends. On May 2, we had only opened in the U.S. with 46 stores in South Carolina, okay, and then after that shortly thereafter we had about 13 stores in the Netherlands that opened, then 13 stores in Austria, very strong out of the box, and then what happened is around May 9, we had about 490 stores open between the U.S. and Poland. We actually opened up in Poland there about 46 stores. That brought us up to, as of May 9, about 562 stores. May 11, we had another chunk, 500 stores -- 503 to be exact opened. That was a combination of 354 in the U.S. and almost 150 in Germany, and again same dynamics of selling over there I would say in all of those, whether it was Austria, and Netherlands, Germany, but what has happened is when you we have these strong trends and we haven't been able to get the flow back in some of the earlier stores, such as in South Carolina, the first thing that I talked about with…

It does, and I've definitely seen the pictures. Scott, maybe to --

Seen the pictures, yes.

Oh yes, and Scott, maybe to follow-up, what timeframe are you targeting for a return to clean inventory levels at your concept? And then how do you balance clearing excess inventory versus taking advantage of the opportunistic closeouts that are clearly in the channel.

Okay, well, I'll take that part, Matt. The -- so first of all, we went in right away when we were opening the stores, and we took our markdowns on the goods that had been sitting there that were seasonally oriented. If goods were more commodity based or basic and weren't seasonal we did not have to mark them down. So we addressed aggressively all of the categories that we felt were seasonal, and we took an initial marked-it-down on those, but they turned very well, and our business on our clearance in all of the stores we opened has been extremely successful. Also I would tell you better than expectations, ironically. So we attacked the markdowns, and then we're in the process now, Matt, of getting the flow from -- because remember, Scott mentioned it, we had inventory in the DCs. We were buying to the plus five comp sales trend early in the quarter, so we had goods in the DCs that we still can use to ship back to the stores, which we're in process now of doing here and in Europe. So then we will get into the process of talking about -- of course there's incredible availability in the market. So now we will be in phase or step C of looking at what's in the market, but only doing that as we ship what was in the warehouses already to the stores. So I think that's kind of the steps we're taking. The markdowns, as you know, as a company we're aggressive on clearing goods, that's why our returns area always so healthy. So we're already going in, if goods aren't moving on the first markdown, we will sub them quickly and bring it to the second markdown. We haven't had to do that very often yet in this initial reopenings.

Perfect. Best of luck.

Scott, do you want to jump in?

Yes, and not -- really not much to add in terms of what we did, and in terms of, not that we're giving guidance, but color on the second quarter. We would still expect to have incremental markdowns in the second quarter but not to the level of the first quarter, primarily due to really that same thing that even by the end of May we're still going to have more than 50% of our stores not open, and depending on the timing of some of those stores when they were open. Obviously some of them are large markets, potentially like California, New York, and in the U.K., Matt, we could -- it's to be determined if we need to take incremental markdowns to move those goods. I mean normally we -- you know how many times we [turn 00:02:24] on average our store inventory, it's close to 12 and overall six times. So effectively when we're going to be opening many of -- most of these stores that we would have already had no inventory in the stores and distribution center, they'd all be -- would have already turned. So we still have some potential liability there.

Thanks --

Matt, I would just jump in and echo something that Scott just said, which is a key point we wouldn't want anyone to forget during this call. Is that the amount we're anticipating right now having about 48%-49% of our stores open by the end of May, because there's a few other tranches going. Canada is opening as we speak about a hundred stores today, that's a portion of the 1,600, and then we have other states that we are know -- we'll get to about that point that Scott mentioned. Unfortunately we can't control our own destiny on the fact that half the other stores still aren't open and it's not up to us. So that could create an issue on the markdowns, which is what I think Scott was getting at. That is a little out of our control. I'm confident when we open we're going to do the business and we'll figure out how to address all that non-current merchandise. It's just the getting open is still the thing that, again, isn't under our control.

Great, thanks again.

Our next question comes from Alex Walvis. Your line is now open.

Good morning. Thanks so much for taking the question. My question follows up a little bit on any color on some of the trends you're seeing in reopened stores. What are you seeing is the strongest, is it traffic or are you seeing strengths in the basket size? Within Marmaxx are there any categories that are resonating particularly well? I'm thinking here perhaps that home is performing particularly well within those banners, and is there anything you can comment on at this stage in terms of whether there are differences between the stores that have opened fitting rooms versus those that haven't? And I think you said you were opening fitting rooms in Canada, so perhaps no color on that just yet?

Okay, so we'll -- Scott and I will tag team here. I will, Alexandra, give you the first part, which is traffic. Well, the traffic is strong in most of the locations, but some of it is about a -- we're getting a higher conversion and a bigger basket also in some locations. So, in Europe, for example, that's been more of a dynamic there. Traffic is obviously -- here's the funky thing, we're doing capacity limits, so we're right now limiting the amount of traffic in most of our locations that we allow at any one time. So it's difficult for us to measure what the actual traffic would be. Scott, our average basket has been healthy, right, if you want to jump in on that?

Yes, I think the most important thing that we've seen is that the average basket, particularly in the United States, but also in Europe has been significantly higher, and we're putting several more units in the basket, and again, some of that is maybe due to we're selling more clearance merchandize, but overall there's just more, significantly more units in the basket for an overall across all both Europe and the United States, both of them.

Now, we do wonder and believe some of that's due to pent-up demand because when you have the pent-up demand and they haven't been shopping, when you get that, that first one job to shop, you're likely going to get a bigger basket. They haven't been out for a while. However, relative to some of our first openings here, we are a couple of weeks later, and it's still been really strong. So at first we thought it might have been that and now we're saying that might be part of it, but not as much as we thought.

And part of it, it probably just relates to the fact that customers who are coming to the stores and making to go out in this new environment, really want to be shopping and buying. So I think that goes to earn these points on, why the conversion like where we measure it in Europe, we know is significantly higher.

And answer to your question regarding certain categories, yes, clearly, we're calling out home, we don't opt to give the information on the other categories really for competitive reasons as to what are but there are definitely I would say there are definitely category trends, which will be different. We will sell families a business differently post-COVID now than we did pre-COVID, and that's okay for us specifically, because our business model is so flexible, our merchants are able to and our planning and allocation teams which on our last call, I give a lot of credit to because they were able to tailor the store to the right mixes for last fourth quarter, and really, they were a key player in doing that, they will be key as well in this post-COVID time between the buying teams and our planning and allocation teams, planning the families of business appropriately based on these trends is what I'm very confident and we will be able to do and fortunately we buy so much hand to mouth here and the way the market has so much availability, that's why I go to a, I would just like more of our stores to get open, and I think we can strategically accomplish that.

That's super clear. Thanks so much, and then one more question if I may on e-commerce, you mentioned that the e-commerce sites have been strong since you reopen them, any change to how you're thinking about the potential for e-commerce within the business over time?

So, great question, and of course our instinct would be to think during this time period, as many e-commerce businesses in the market have catapulted their sales of recent understandably with people being at home. It has been for us a basically 2% business, so do I think in the short-term, we could over index on that I do. In long-term, I think once all our stores are open, and we forgot how to operate obviously differently in a more safe manner, in the environment we need to operate. I think it will settle back down, it will probably still be healthy. We're getting very healthy. Well, we're getting very healthy reads on it, but we are having, we've been shutting it down early in the day. So any of you have shopped our sites, you will see in our TJ Maxx or Marshalls.com sites after few hours in the morning, we have had to shut the site down because when we started the sites up and the same as in Europe, we ensured safety for our associates went in with a more limited capacity output due to safety standards, social distancing, et cetera, many other things, and so, we consciously knew, we wouldn't be at full capacity and we would let it evolve over the next month. So, right now, we within a few hours are hitting a capacity that which is I guess you would call it a high class problem, and our intention is obviously keep building as we're learning how to operate safely for our associates. We will keep ramping that up further to the point, we hope to be back to the growth over the last year significant numbers, but I would say strategically nothing it will change in terms of the total TJX. We will not look to e-commerce as our major leveraging point to get us through COVID and out the other side it'll be complimentary as it always is. One of the nice things though again, as it will probably grow a little disproportionally, the returns at a high rate go back to our stores, which is still one of the silver linings, and it is complimentary to us. Again, as we're looking for market share, going after younger customers, whether in COVID-19 environment after just like we will before, and I think that's it.

Great. Thank you so much.

Welcome.

Our next question comes from Omar Saad. Your line is now open.

Thanks for all the information. Thanks for taking my question. I wanted a little bit more color on the inventory landscape. You know, is it how are you thinking about packaway in this unusual time versus your typical period? Any issues in the home supply chain that is obviously an incredibly strong category we're hearing from a number of retailers. Not sure if there are any issues there we should be thinking about, and then one quick follow-up on e-commerce, maybe you could talk a little bit more why you shut down the e-commerce business during the quarantine period. Is that logistical and operational, answer to that question? Thanks.

Sure, let me start with the inventory supply availability in the market. Omar, pretty straightforward here in that, first of all, there will be an unusual amount of packaways available. Some of these goods based on the way so many stores were shut wouldn't necessarily have to be packaway for a long period of time, it could be something that's that we buy and we ship it in little offseason, and we ship it to our southern stores. The strange dynamic is there's so much goods out there right now, that a lot of us will not able to use that we believe there is going to be a lot of packaways or a holdover being done by actually the vendor community. So for the first time, obviously, this is a strange environment, and we hope we don't run into this again for numerous reasons. It will be packaways at the vendor level, if that makes sense to you. A lot of holdover goods that will probably be showing up in the first quarter of next year. So that's what really will be happening from what we can see with inventory out there. Home supply is a non-issue for us. We have so many - what is not going to be happening from what we can see at home, and even in our full apparel categories, whether in Marmaxx or Winners T.K. Maxx, is we will go dynamic that already was starting to happen last couple of years is it seems based on our temperature checks with many of our vendors, because all of our buyers and merchandise managers have been working from home and staying in touch with the vendor community throughout this process is a strong feeling that we will probably be even more important to the vendors,…

Thanks, Ernie, all the best.

Thank you, Omar.

Our next question comes from Michael Binetti. Your line is now open.

Hey, guys, thanks for taking our questions here, and thanks for all the detail. Can you talk about this a little bit with Omar's question, but I know you guys always try to front run this and talk about inventory being available in the marketplace, but are you taking any actions other than what would be normal that suggests you're expected to be making bigger buys in the near term, other off pressures have noted some actions to prep for - I would say significantly more inventory to pack and hold, and then I'm also curious, if you -- what you think when you hear some of the bigger vendors that are public companies mentioning on conference calls, that they may change their business models a bit to packaway some inventory and repurpose product for what seems like the first time to hold it given the unique dynamics of this period in the economy?

Sure, Michael, so in the first question, the biggest -- so there are clearly bigger buys out there. Our mode of operation right now has been with the merchants to take it. We're really taking it week-by-week right now. So we have all of our teams they communicate very regularly. Our Group President, Richard Sherr has been really helping to spearhead a lot of the communication with our division presidents across all the divisions so that we're approaching the market strategically, with a current amount of information. So what we've been doing is regardless of the availability out there, we don't want to buy too much too soon, the temptation would be for us, and remember what I said at the beginning of the Q&A, is we are right now utilizing a lot of the order that had already hit us that is in our DCs. So for current window, we're using some of that and yes, we do need to now supplement with these stores being better than we planned on. We are going to supplement with some buying, but we're trying to do it in a very methodical surgical approach, and so we're taking it step-by-step to keep an eye on the environment and where did the retail go on the product by the way, because we won't buy anything if we can't show significant enough savings against the out the door or out the online door of the other retailers. So I would say we're probably going to be a little different, and by the way to your second question, with the vendors doing their own path -- that's kind of what I referred to at the beginning of Omar's. Yes, we think there is going to be in addition to us doing X amount of packaways, there is going to be a lot of vendor packaways, where the vendors are going to carry over or repurpose, I think was the word used, and we do believe I think that's an accurate call out that we're hearing as well, and we'll approach those deal-by-deal, brand-by-brand, and item-by-item, so good questions.

Thank you, and let me follow that. You mentioned in the press release and on the commentary, taking some social distancing actions. I guess as you get to parts of the year where the stores are typically very, very crowded, I'm thinking about back-to-school and holiday. There will be challenges and driving positive traffic in those periods if these restrictions are still in place.

Yes, there will and so we have teams right now working at how to minimize those challenges. So you could have something like I'm not saying that they were definitely going to do it. One of the options is you expand your store hours, so you can get -- you don't have to crunch -- try to crunch the busiest time periods and the amount of people. Now it's an interesting dynamic as we have gone in our earliest states, we use either 20% or 25% capacity limits, and South Carolina, we were still running over the last year numbers because again you have to orderly create lines outside that we have to space coming in, and you can do it in a consistent manner, but it definitely will create pressure and there will be operating costs that Scott and I talked about all the time that will be baked in to having to operate at different types of paces like that. So right now, for example, we don't have our fitting rooms open. So, that's one thing that creates helps with efficiency. We did it for safety, though. That is our motive there, but I have faith in our teams figuring out how to deal with the safety issues that they come up, but it will be a challenge.

Yes, I think as Ernie said, I think it's more toward the very end of the year in your November, December timeframe, and it's I think only and to be determined we're obviously only been doing this for a few weeks. The large majority of our stores will not be impacted at all. It's the higher volume stores and potentially some of the stores in Europe than others where they eat, where they do a lot more sales per square foot than we even do in the U.S. So I think it's something that we sell several months to figure out I think also we don't know what the dwell times and others could be less and the average baskets are higher, we'll have to see does that stick as Ernie said or not before? So I think we have some time to work it out, but I think it's more toward the end of the year where that will be impacted if it does impact us.

Michael to Scott's point, we don't -- that's a good point though, back to school for us doesn't, as you know we're more of a consistent retail volume like month by month, but we don't have that type of spike really till holiday. So our back to school would be manageable. I should have pointed that out.

And yes, one other thing, just to add on that and again, this is early days, couple of weeks, just as you know particularly in Europe, where that would be more of an issue than in the U.S. given the number of high streets and shopping mall and high volume locations we have. We have seen a flattening at least where people are working more at home, where the shopping patterns have more flattened over the week than on the week than on the Saturday, Sunday, which could help with deal with some of those occupancy limits that Ernie talked about.

The one dynamic which globally, I'm sure this will apply to many. So we're seeing right now, if the customer wants to kind of cut back on how much he or she goes out shopping, we could continue to see that average basket be higher with a little less visits, and you're doing it off of not as many people coming through. So, it will be interesting to see. I don't know how that we've never been through this, how that translates at holiday. It'll be interesting to watch that dynamic as well.

Interesting, thanks for all the detail guys.

Thank you.

Our next question comes from Kate Fitzsimons. Your line is now open.

Yes, hi. Thank you very much for taking my question. I guess as we're trying to think about some of the traffic dynamics as you alluded to in holiday, you guys had noted previously success with some of our omnichannel capability in markets such as the U.K. with Click and Collect, I understand obviously e-com is still a small percent of the business, but is there any view on maybe evaluating more omnichannel capability just across the greater percent of the store base or more regions, just as you're trying to get that traffic? And then secondly, my question would be on marketing dollars, we've seen them be cut back across the industry just given certainly the sales pullback, but you guys had alluded to a marketing message into the back half though. So, just kind of curious on your thoughts on marketing as we come out of this, how are you going to communicate to the customer the values and trying to gain that market share? Thank you very much.

Sure, let me well so for holiday with e-commerce with Click and Collect, that is something in the state, I think we're still more prepared for that in Europe, where it's almost like you'd have to do that, where the mail service will not leave it at many flats or apartments or houses. So we are not -- I don't think we would be prepared here in the States to do the Click and Collect as readily, and that would just be an operational logistics challenge for us. We're just not ready to handle that right now, and based on this year, the way we're trying to get up and running just in terms of fulfilling orders on the side, I would think that would be something for down the road, we would take a look at. So good question, I understand where that would come from, we love Click and Collect it's creating a visit to the store. So I think you'll see us continue to ramp that up in Europe, by the way, just not domestically here. Marketing is interesting, and just you triggered something, Kay when you asked the question. The other thing we had to do with all of our stores that we opened here ironically is we got these, we did not mark it, and in fact, because our capacity was getting hit and we are trying to learn from it as we open during COVID, our capacity was getting hit to early like in South Carolina and some of the other markets. We have actually minimized our marketing, and we have gone to in most we cases we have opted to not do Saturday openings because we are getting so many customers, and it was difficult to our associates to manage. We are moving…

Yes, I think to Ernie's point, right now it's -- we still have lion share of our stores still to open. So, we are doing most of it digitally, and through social media, email, and our influencers, and going forward clearly as Ernie said depending on where we at, we would obviously do - we will shift to do more national advertising and other things that we traditionally do for building awareness, getting new customers into the store et cetera, but little too early for us to be committing exactly on the timeframe, but that would be generally how it would go.

All right, next question.

Our final question of the day comes from Paul Lejuez. Your line is now open.

Hey, thanks guys. On your buyers -- on your buying organization, I am curious what percent of your buyers are back and active in the market. Were they all completely shut down for a period of time? If so, how long, and then, separate, I think you mentioned 21,000 vendors that you do business with, where can that go? Just want to get a sense of the size of the pool. That's 21,000 out of how many folks can you possibly have relationships with? Where do you stand today, and how do you expect that number to grow or strength maybe during this period? Thanks.

Great questions, Paul, I will start with the first one. Buyers were -- so the buyers I have never been disconnected I would say. Everybody has been working from home. In fact many of things we had to do when COVID hit were we had to talk to vendors about many different things. Our buyers were all engaged in dealing with the vendors. They have not yet -- and the second thing you mentioned was a shutdown. Yes, there were shut down. We shut them down completely from buying anything. When we got to that -- when you -- this has never happened before. When you get to the point where you have to shutdown 4500 stores, you have to stop buying because you would just be eating through cash like crazy, and we didn't want to cause more strain on vendors or us et cetera when we didn't know what the light was at the end of the tunnel when can we sell product? So, having said that, they are all in touch with their manager and all ready to go, in fact, some of the surgical buying that we have talked about doing based on the recent sales trend [technical difficulty] that we have in the limited -- in the basically, I know we're saying we have 1,600 stores open; we really had 1,100 till yesterday. It's with the recent batch today that gets us to 1,600. [Technical difficulty] We had about 400 in the States and 100 in Canada [technical difficulty] that jump up to 1,600. So, but of that 1,100, we will [technical difficulty] this is a little like the question when we used to have, I don't know how long [technical difficulty] 10,000 then went to 15 and [technical difficulty] and continue to grow just at a slower rate, because [technical difficulty] what tends to happen in these times, and this is an extreme time as more vendors are still looking for who's the retailer that I should try to do business with, and we're very [technical difficulty]. So, I would guess this will grow a little bit. I can't put a number on it though.

So it's just one thing, going back to store openings and Ernie just mentioned and that is that, although we don't have firm dates and we said we have approximately 50% out, and based on what we know from different, you know, the different government, government agencies and stuff where they dictate these things around the country and around either rest of our world [technical difficulty], the global we have stores where we estimate that we will be open for approximately 65% of the quarter compared to what we would originally compared to a normal 100%. Just two minor caveats to that is one a lot of locations where we have not opened, the California, New York or higher volume locations, whether it's the U.K., Toronto, Montreal, California, New York, et cetera, and also just not that it's a big deal, but the spread of our quarter, now the first six, seven weeks of the quarter are higher volume per day quarter than the back half. So when you guys are trying to think about that, it's not in our control, but that's just the way it flows, and so, just wanted to get that out, and at the same time, because we're going to be -- we're still closed for much of the quarter, we're still paying as we said, a large number of associates who are still not fully working similar not as the same extent of as the first quarter, but still paying associates, and we think again as Ernie said, it's been critical, it's very effective for us being able to jumpstart the positions and we continue to believe that over at least what will hopefully be just a few more short weeks before we have a lot of our stores or vast majority open. So, again, just wanted to get that out.

Okay, thank you all for joining us today. We will be updating you again on our second quarter earnings call in August. From the team here at TJX, we hope you all stay well, and we wish you good health for you and your families. Thank you.

Ladies and gentlemen, that concludes your conference call for today. You may all disconnect. Thank you for participating.