TJX Companies, Inc. (The)

International and currency · International operations and emerging markets

As with our current operations, risks are inherent in opening and developing operations in, or making investments in, new countries, including risks related to compliance with the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Additional risks include understanding the local retail climate and trends, local customs and cultures, local labor markets, seasonal differences, business practices and competitive conditions.

Credit and liquidity · Access to capital and financing

On occasion, we borrow money to finance our activities, and if financing were not available to us in adequate amounts and on appropriate terms when needed, that could adversely affect our financial performance.

Market and investment · Asset valuation and impairment

If we are unable to realize the anticipated benefits from acquisitions or investments, we may be required to impair some or all of the goodwill associated with an acquisition or some or all of the investment, which would adversely impact our results of operations and balance sheet.

Market and investment · Investment portfolio performance

Changes in economic conditions could adversely affect plan asset values and investment performance and increase our pension liabilities, expenses and funding requirements.

Corporate governance · Internal controls and risk management

Failure to effectively manage the large size and scale of our operations may adversely affect our financial results. The large size and scale of our operations also increase the risk that our systems, controls, practices and policies may not be effectively or consistently implemented or updated on a timely basis throughout our company.

Stakeholder relations · Community and public relations

Damage to the reputation of our company and our banners could, among other things, result in demonstrations, protests, or altercations at or about our stores.

Geopolitical and trade · Regulatory and policy uncertainty

Volatility or uncertainty in regulation or policy, including in areas such as international diplomacy, trade and tariff policies; threats or occurrences of war or armed conflict, geopolitical instability or uncertainty.

Geopolitical and trade · Political instability and government changes

Financial, regulatory and other risks are also associated with international operations, including the risk of policy or regulatory changes and the risk of political, economic and civil instability and labor unrest.

Natural and catastrophic events · Terrorism and security threats

Acts of war or conflict (such as the ongoing Russia-Ukraine conflict, the ongoing conflict in the Middle East and shipping disruptions in the Red Sea and surrounding waterways); domestic or foreign terrorism or other acts of violence (including riots or active shooter situations).

Social and demographic · Social and political movements

Challenges or reactions to action (or inaction), or perceived action (or inaction), by our company to sensitive or polarizing topics, crises, or political matters could harm our reputation.

Social and demographic · Demographic pattern changes

Changing demographics and workforce trends, including with respect to unionization and collective bargaining.

Social and demographic · Public perception and reputation

Damage to our corporate reputation or any of our retail banners' reputation could adversely affect our sales and operating results. Incidents that erode trust or confidence in our company could adversely affect our reputation and thereby impact our business.

Legal and litigation · Product liability and warranty claims

Quality, safety or other issues with merchandise we buy and sell could impact our reputation, sales and financial results. If we, our vendors, or other third parties performing services on our behalf are unable or fail to comply with regulatory requirements on a timely basis or at all, we could have to conduct product recalls.

Tax and financial reporting · Audit and regulatory examinations

We are subject to the continuous examination of our tax returns and reports by national, state, provincial and local tax authorities in the U.S. and foreign countries.

Technology infrastructure · Disaster recovery and business continuity

Our business continuity and disaster recovery plans may not be adequate to address all potential scenarios, particularly those involving disruptions of unprecedented scope, severity, or duration.

Digital transformation and innovation · Technology obsolescence and evolution

We could be at a competitive disadvantage if, over time, our competitors are more effective than we are in their use and integration of rapidly evolving technologies, including artificial intelligence or other emerging technologies.

Information management · Data quality and integrity

There is also a risk of material business disruption, liability and reputational damage associated with ongoing actions intended to update, enhance, modify or replace our systems and infrastructure, including from not accurately capturing and maintaining data.

Customer and revenue · Customer retention and subscription renewal

Failure to identify consumer trends and preferences, or to otherwise meet customer demand or expectations, in new or existing markets or channels could negatively impact our performance and may have a negative impact on our ability to attract new customers, retain existing customers.

Market position and competition · Competitive pressure and market share loss

The retail apparel and home fashion businesses are highly competitive. We compete on the basis of various factors affecting value (which we define as the combination of brand, fashion, price and quality). Some of our competitors are larger than we are, hold greater financial resources, have more experience selling certain product lines, provide certain product categories more consistently, or provide products through different channels than we do.

Market position and competition · Pricing pressure and margin compression

If our merchandise is not generally purchased at prices sufficiently below prices paid by conventional retailers, we may not be able to maintain our desired value gap at various times or in some segments, banners, product categories or geographies, which could also affect our sales, margins and other financial results.