North America Equity Research
16 November 2022
J P M O R G A N
TJX Companies
Brands, Value & Convenience = 3Q Top-Line Beat &
Raise; Overweight & “Core 4”
Overweight
TJX, TJX US
Price (15 Nov 22):$75.12
▲Price Target (Dec-23):$90.00
Prior (Dec-23):$80.00
Retailing – Department Stores &
Specialty Softlines
Matthew R. Boss, CPA AC
(1-212) 622-2630
matthew.boss@jpmorgan.com
Bloomberg JPMA BOSS
Amanda K. Douglas
(1-212) 622 0316
amanda.douglas@jpmorgan.com
Kevin Heenan, CFA
(1-212) 622-5208
kevin.heenan@jpmorgan.com
Elsa H Evans
(1-212) 622-4922
elsa.evans@jpmchase.com
Robert Friedner
(1-212) 622-5413
robert.friedner@jpmorgan.com
J.P. Morgan Securities LLC
Quarterly Forecasts (FYE Jan)
Adj. EPS ($)
2022A 2023E 2024E
Q1 0.44 0.68A
Q2 0.79 0.69A
Q3 0.84 0.86A
Q4 0.78 0.89
FY 2.85 3.11 3.46
Style Exposure
TJX reported 3Q adjusted EPS of $0.86 (> Street at $0.80) driven by -2% US-only
comps (exceeding management’s -5% to -3% Y/Y guidance led by +3% comps at
Marmaxx), 3Q GPM 29.1% (> Street 28.8%) w/ strong mark-ons fully offsetting
a 120bps Y/Y freight headwind, and more favorable SG&A expense leverage of
30bps Y/Y to 18.0% (vs. Street 18.5%) noting a favorable benefit from expense
timing.
Digging deeper: US-only 3-year same-store-sales stacks accelerated every single
month throughout the quarter led by sequential improvement in traffic, with our
model math pointing to a +16% US-only 3-year comp stack in October to close 3Q
(> September +14% > August +12%). Notably driving the sequential comp
stack improvement throughout the quarter, CEO Herrman cited apparel as
the key driver within Marmaxx (3Q SSS +3% > JPMe flat) as an extremely
healthy barometer for the business w/ “branded content at a new level today”
supported by a “marketplace absolutely loaded” with branded merchandise
across good/better/best categories and within Ladies, Mens, and Kids
apparel, and open-to-buy remains in great shape (see our 10/17 Recent
Fieldwork & Management Access = Off-Price Inflection On Tap for our full store
pictorial). More specifically, Marmaxx comped positive every single month in the
quarter and improved sequentially throughout the quarter driven by customer
traffic (albeit still down Y/Y). On the bottom line, 3Q’s 11.2% pretax margin
exceeded mgmt’s 10.1-10.4% guidance largely due to a benefit from the timing of
expenses (most of which will reverse out in 4Q), though continued strong mark-ons
fully offset a 120bps freight headwind w/ management citing better buying as
the primary driver tied to the favorability of the buying environment today
(w/ TJX’s size/scale a key advantage sourcing from 21K+ vendors in our
view).
Looking Ahead: Management raised 4Q US-only same-store-sales guidance to
flat to +1% (vs. -1% to flat prior), implying a 3-yr comp stack of +14% (= consistent
with 3Q, but prudently below the October +16% exit rate by our math) w/ mgmt.
citing a prudent traffic assumption (including the unfavorable recent weather YOY
embedded in 4Q). Importantly, CEO Herrman outlined 5 key opportunities to
drive traffic and sales into holiday: (1) Delivering excellent value throughout the
store & online especially during the current inflationary environment, (2) offering
an assortment of branded gifts throughout the holiday season to excite shoppers
(w/ the marketplace flooded with quality branded merchandise across good, better,
best categories), (3) flowing fresh product to stores/online multiple times a week
throughout holiday, representing a key differentiation vs. other retailers (= treasure
hunt experience), (4) effective holiday marketing campaigns emphasizing
“spend less, gift more, all season long” to drive awareness across each banner, and
(5) managing through “any type of promotional environment that we may see
from other retailers in 4Q & beyond” as TJX has over the past 46 years of
operating history. On the bottom line, management guided 4Q pretax margins to
9.5-9.8% and EPS to $0.85-0.89 (vs. $0.92-0.96 prior & Street $0.95), tied to the
See page 6 for analyst certification and important disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that
the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single
factor in making their investment decision.
Sources for: Style Exposure – J.P. Morgan Quantitative and Derivatives Strategy; all other tables are company data and J.P. Morgan estimates.
2Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
Price Performance
YTD 1m 3m 12m
Abs -0.6% 18.2% 14.9% 8.4%
Rel 15.6% 6.8% 22.0% 23.1%
Company Data
Shares O/S (mn) 1,172
52-week range ($) 77.35-53.69
Market cap ($ mn) 88,060.70
Exchange rate 1.00
Free float(%) 93.2%
3M - Avg daily vol (mn) 5.24
3M - Avg daily val ($ mn) 349.4
Volatility (90 Day) 30
Index S&P 500
BBG BUY|HOLD|SELL 19|4|1
Key Metrics (FYE Jan)
$ in millions FY22A FY23E FY24E FY25E
Financial Estimates
Revenue 48,550 49,467 51,337 54,341
Adj. EBITDA 5,623 5,763 6,314 7,194
Adj. EBIT 4,513 4,690 5,371 6,196
Adj. net income 3,463 3,661 3,977 4,575
Adj. EPS 2.85 3.11 3.46 3.95
BBG EPS 3.13 3.51 - -
Cashflow from operations 3,057 4,030 4,532 5,810
FCFF 2,013 2,230 2,732 4,010
Margins and Growth
Revenue growth 51.1% 1.9% 3.8% 5.9%
Gross margin 28.5% 28.3% 28.9% 29.8%
EBITDA margin 11.6% 11.6% 12.3% 13.2%
EBIT margin 9.3% 9.5% 10.5% 11.4%
Adj. EPS growth 1017.4% 9.2% 11.1% 14.2%
Ratios
Adj. tax rate 25.4% 25.3% 25.3% 25.3%
Interest cover 48.9 556.0 133.6 99.5
Net debt/Equity NM NM 0.0 0.0
Net debt/EBITDA (0.5) (0.2) 0.0 0.0
ROCE 31.7% 37.7% 43.2% 48.1%
ROE 58.5% 61.5% 67.1% 73.0%
Valuation
FCFF yield 2.2% 2.5% 3.2% 4.6%
Dividend yield - - - -
EV/Revenue 1.5 1.5 1.5 1.4
EV/EBITDA 12.9 12.9 12.0 10.5
Adj. P/E 26.4 24.1 21.7 19.0
Summary Investment Thesis and Valuation
Investment Thesis
Within retailing, we believe positioning is paramount with
Off-Price growth prospects ripe (only 15% of $300B apparel
market today) and TJX a multi-year beneficiary given a rare
trio of positive brick & mortar traffic (treasure hunt strategy à
la DLTR/COST with legs to the branded cycle, 28% home
exposure, and lateral fast-fashion traffic beneficiary), global
reach (mid-teens Europe mix with high barriers to entry), and
e‑commerce an incremental $2-3B (i.e., 5-10%) opportunity
on our math (basics focus with no cannibalization to date).
Valuation
We raise our December ’23 PT to $90 (vs. $80 prior) based
on 22.7x our FY25E EPS (= 1.8x 3-yr pre-pandemic average
PEG applied to forward LDD EPS growth).
Performance Drivers
Source: J.P. Morgan Quantitative and Derivatives Strategy for Performance Drivers; company data, Bloomberg Finance L.P. and J.P. Morgan estimates for all other tables. Note: Price history may not be
complete or exact.
3Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
reversal of 3Q’s favorable expense timing, implying 2H pretax margins of 10.4% at the
midpoint, which represents the high end of mgmt’s prior expectations supported by
continued strong mark-ons primarily due to better buying. Put together, TJX sees FY23
US-only comps of -2% to -1% (vs. -3% to -2% prior), adj. pretax margins of 9.8-9.9% (= high
end of prior outlook), and adj. EPS of $3.07-3.11 (vs. prior $3.05-3.13 guidance & Street
$3.13), which embeds a $0.02 FX headwind to EPS.
Multi-year: Management reiterated expectations to return to pre-pandemic pretax margins
of 10.6% by FY25 supported by (i) overall comp store sales +low-single-digits in each of the
next 2 years, (ii) additional merchandise margin expansion opportunities across all divisions,
and (iii) expense headwinds moderating, including freight inflecting to a tailwind next year
(please see our 11/11 Digging Deeper: The Freight & Supply Chain Setup - Retail Sub-Sector
Primer & Playbook).
Model Implications – PT to $90: We model FY23 EPS of $3.11 (vs. Street $3.13) and FY24
EPS of $3.46 (vs. Street $3.51). Reiterate Overweight & Analyst Focus List Pick, raising
our Dec ’23 price target to $90.
• Boss’ 3Q Top-Line/Bottom-Line Breakdown: TJX reported 3Q net sales decline -3%
yoy (= St. -3% & management’s -3% to -2% guide), or +5.2% 3-yr revenue CAGR
(relative to 2Q +6.6%) noting a ~300bps FX headwind to net sales in 3Q (vs. ~200bps
in 2Q). Specifically, by banner, Marmaxx revenue growth led +3% Y/Y (= +5.5% CAGR
vs. 2Q +5.8%), followed by Canada -1% Y/Y (= +5.9% reported CAGR vs. 2Q +8.9%),
HomeGoods -14% Y/Y (= +7.2% revenue CAGR vs. 2Q +9.2%), and International
trailed w/ revenue -16% Y/Y (decelerating 430bps vs. 2Q on a CAGR basis). On the
bottom line, 3Q adj. pretax margins of 11.2% exceeded Street expectations (10.2%)
w/ SG&A rate driving the beat vs. consensus (18% reported vs. Street
18.6%). Further, 3Q GPM contracted 40bps Y/Y to 29.1% with merchandise margin (flat
y/y) benefitting from a combination of strong mark-on mainly due to better buying, albeit
offset by 3Q’s ~120bps freight headwind. On the expense front, reported 3Q SG&A
leveraged 30bps Y/Y, despite 80bps of incremental wage investments.
• CFO Leadership Transition: TJX announced the promotion of John Klinger to
Executive Vice President and Chief Financial Officer effective January 29, 2023. Klinger
will continue to report to current CFO Scott Goldenberg, who will remain in the company
as Senior Executive Vice President, Finance and undertake responsibilities for other
corporate functions. Klinger first joined TJX in 2000 as a Manager of Business Analysis
in the Marmaxx division and has since held various roles with increasing responsibility
within HomeGoods and Marmaxx divisions, including VP, Divisional CFO for
AJWright, VP, Corporate Finance, and Divisional CFO of TJX Europe, before reaching
his current position as SVP, Corporate Controller in 2015. Klinger will continue to work
closely with Goldenberg, with CEO Ernie Herrman commenting that TJX will
continue to benefit from both Goldenberg & Klinger's combined off-price
experience, financial expertise and leadership.
• Balance Sheet Update: (1) Cash/Leverage: TJX ended 3Q with $3.4B in cash against
$3.4B of debt. (2) Inventory: 3Q inventories were +31% Y/Y constant currency (vs.
+35% in 2Q). (3) Capital Allocation: TJX repurchased $500M of TJX stock, retiring
7.7M shares, and paid $343M in shareholder dividends. TJX reiterated plans to
repurchase ~$2.25-2.5B of stock in FY23.
4Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
Investment Thesis, Valuation and Risks
TJX Companies (Overweight; Price Target: $90.00)
Investment Thesis
Within retailing, we believe positioning is paramount with Off-Price growth prospects ripe
(only 15% of $300B apparel market today) and TJX a multi-year beneficiary given a rare
trio of positive brick & mortar traffic (treasure hunt strategy à la DLTR/COST with legs to
the branded cycle, 28% home exposure, and lateral fast-fashion traffic beneficiary), global
reach (mid-teens Europe mix with high barriers to entry), and e‑commerce an incremental
$2-3B (i.e., 5-10%) opportunity on our math (basics focus with no cannibalization to date).
Valuation
We raise our December ’23 PT to $90 (vs. $80 prior) based on 22.7x our FY25E EPS (= 1.8x
3-yr pre-pandemic average PEG applied to forward LDD EPS growth).
Risks to Rating and Price Target
The economic climate, particularly the employment picture, can affect consumer spending
and the apparel industry. A greater than expected downturn in household spending could
cause sales trends to decelerate below our current assumptions, rendering our estimates too
high. Additionally, a change in the competitive landscape related to promotional activity,
particularly from the department store channel, could negatively impact market share gain
potential. Finally, lack of inventory availability within the closeout channel or brands
pulling out of the off-price channel could negatively impact SSS.
5Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
TJX Companies: Summary of Financials
Income Statement - Annual FY21A FY22A FY23E FY24E FY25E
Revenue 32,137 48,550 49,467 51,337 54,341
COGS (24,534) (34,714) (35,485) (36,483) (38,141)
Gross profit 7,603 13,836 13,983 14,854 16,201
SG&A (7,021) (9,081) (9,075) (9,483) (10,005)
Adj. EBITDA 1,453 5,623 5,763 6,314 7,194
D&A (871) (868) (909) (944) (999)
Adj. EBIT 270 4,513 4,690 5,371 6,196
Net Interest (181) (115) (10) (47) (72)
Adj. PBT 89 4,398 4,680 5,323 6,123
Tax 1 (1,115) (1,183) (1,346) (1,548)
Minority Interest 0 0 0 0 0
Adj. Net Income 308 3,463 3,661 3,977 4,575
.
Reported EPS 0.07 2.70 2.97 3.46 3.95
Adj. EPS 0.25 2.85 3.11 3.46 3.95
DPS - - - - -
Payout ratio - - - - -
Shares outstanding 1,208 1,216 1,177 1,151 1,159
Same Store Sales Growth - - - - -
Balance Sheet & Cash Flow Statement FY21A FY22A FY23E FY24E FY25E
Cash and cash equivalents 10,470 6,227 4,668 3,281 3,160
Accounts receivable 896 956 974 1,011 1,070
Inventories 4,337 5,962 6,074 6,304 6,673
Other current assets 36 115 117 121 128
Current assets 15,739 13,259 11,833 10,716 11,031
PP&E 5,036 5,271 6,162 7,018 7,819
LT investments - - - - -
Other non current assets 10,038 9,932 9,951 9,988 10,049
Total assets 30,814 28,462 27,945 27,723 28,899

Short term borrowings 750 0 0 0 0
Payables 4,823 4,465 3,948 3,467 3,670
Other short term liabilities 5,231 6,003 6,086 6,257 6,531
Current liabilities 10,804 10,468 10,035 9,724 10,201
Long-term debt 5,333 3,355 3,355 3,355 3,355
Other long term liabilities 8,844 8,636 8,656 8,696 8,762
Total liabilities 24,981 22,459 22,045 21,775 22,318
Shareholders' equity 5,833 6,003 5,900 5,948 6,582
Minority interests 0 0 0 0 0
Total liabilities & equity 30,814 28,462 27,945 27,723 28,899
BVPS 4.83 4.94 5.01 5.17 5.68
y/y Growth (0.4%) 2.2% 1.5% 3.1% 9.8%
Net debt/(cash) (5,137) (2,872) (1,313) 74 194

Cash flow from operating activities 4,562 3,057 4,030 4,532 5,810
o/w Depreciation & amortization 871 868 909 944 999
o/w Changes in working capital 3,377 (1,489) (565) (578) 47
Cash flow from investing activities (579) (1,046) (1,800) (1,800) (1,800)
o/w Capital expenditure (568) (1,045) (1,800) (1,800) (1,800)
as % of sales 1.8% 2.2% 3.6% 3.5% 3.3%
Cash flow from financing activities 3,228 (6,200) (3,789) (4,119) (4,130)
o/w Dividends paid (278) (1,252) (1,389) (1,494) (1,505)
o/w Net debt issued/(repaid) 3,569 (2,976) 0 0 0
Net change in cash 7,253 (4,243) (1,559) (1,387) (120)
Adj. Free cash flow to firm 3,994 2,013 2,230 2,732 4,010
y/y Growth 40.5% (49.6%) 10.8% 22.5% 46.8%
Income Statement - Quarterly 1Q23A 2Q23A 3Q23A 4Q23E
Revenue 11,406A 11,843A 12,166A 14,052
COGS (8,223)A (8,572)A (8,623)A (10,067)
Gross profit - - - -
SG&A (2,095)A (2,175)A (2,185)A (2,621)
Adj. EBITDA 1,308A 1,315A 1,523A 1,617
D&A (220)A (218)A (218)A (253)
Adj. EBIT 1,089A 1,097A 1,305A 1,363
Net Interest (19)A (11)A 0A 19
Adj. PBT 1,070A 1,086A 1,305A 1,382
Tax (265)A (276)A (296)A (346)
Minority Interest 0A 0A 0A 0
Adj. Net Income 805A 809A 1,009A 1,037

Reported EPS 0.49A 0.69A 0.91A 0.89
Adj. EPS 0.68A 0.69A 0.86A 0.89
DPS - - - -
Payout ratio - - - -
Shares outstanding 1,189A 1,178A 1,172A 1,168
Same Store Sales Growth - - - -
Ratio Analysis FY21A FY22A FY23E FY24E FY25E
Gross margin 23.7% 28.5% 28.3% 28.9% 29.8%
EBITDA margin 4.5% 11.6% 11.6% 12.3% 13.2%
EBIT margin 0.8% 9.3% 9.5% 10.5% 11.4%
Net profit margin 1.0% 7.1% 7.4% 7.7% 8.4%

ROE 5.2% 58.5% 61.5% 67.1% 73.0%
ROA 1.1% 11.7% 13.0% 14.3% 16.2%
ROCE 2.7% 31.7% 37.7% 43.2% 48.1%
SG&A/Sales 21.8% 18.7% 18.3% 18.5% 18.4%
Net debt/equity NM NM NM 0.0 0.0

P/E (x) 294.7 26.4 24.1 21.7 19.0
P/BV (x) 15.6 15.2 15.0 14.5 13.2
EV/EBITDA (x) 48.6 12.9 12.9 12.0 10.5
Dividend Yield - - - - -

Sales/Assets (x) 1.2 1.6 1.8 1.8 1.9
Interest cover (x) 8.0 48.9 556.0 133.6 99.5
Operating leverage 408.8% 3076.8% 207.9% 384.1% 262.5%

Revenue y/y Growth (23.0%) 51.1% 1.9% 3.8% 5.9%
EBITDA y/y Growth (72.5%) 287.0% 2.5% 9.6% 13.9%
EBIT y/y Growth (93.9%) 1571.4% 3.9% 14.5% 15.4%
Tax rate 1.4% 25.4% 25.3% 25.3% 25.3%
Adj. Net Income y/y Growth (90.6%) 1024.8% 5.7% 8.6% 15.0%
EPS y/y Growth (90.4%) 1017.4% 9.2% 11.1% 14.2%
DPS y/y Growth - - - - -

Store Count - - - - -
Sales per Store - - - - -
Total Square Footage - - - - -
Sales per sq foot - - - - -




Source: Company reports and J.P. Morgan estimates.
Note: $ in millions (except per-share data).Fiscal year ends Jan. o/w - out of which
6Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
Analyst Certification: The Research Analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple Research Analysts
are primarily responsible for this report, the Research Analyst denoted by an “AC” on the cover or within the document individually certifies,
with respect to each security or issuer that the Research Analyst covers in this research) that: (1) all of the views expressed in this report
accurately reflect the Research Analyst’s personal views about any and all of the subject securities or issuers; and (2) no part of any of the
Research Analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the
Research Analyst(s) in this report. For all Korea-based Research Analysts listed on the front cover, if applicable, they also certify, as per KOFIA
requirements, that the Research Analyst’s analysis was made in good faith and that the views reflect the Research Analyst’s own opinion,
without undue influence or intervention.
All authors named within this report are Research Analysts who produce independent research unless otherwise specified. In Europe, Sector
Specialists (Sales and Trading) may be shown on this report as contacts but are not authors of the report or part of the Research Department.
Important Disclosures
Market Maker/ Liquidity Provider: J.P. Morgan is a market maker and/or liquidity provider in the financial instruments of/related to TJX
Companies.
Client: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients: TJX Companies.
Client/Non-Investment Banking, Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies)
as clients, and the services provided were non-investment-banking, securities-related: TJX Companies.
Client/Non-Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients, and the
services provided were non-securities-related: TJX Companies.
Non-Investment Banking Compensation Received: J.P. Morgan has received compensation in the past 12 months for products or services
other than investment banking from TJX Companies.
Debt Position: J.P. Morgan may hold a position in the debt securities of TJX Companies, if any.
Company-Specific Disclosures: Important disclosures, including price charts and credit opinion history tables, are available for compendium
reports and all J.P. Morgan–covered companies, and certain non-covered companies, by visitinghttps://www.jpmm.com/research/disclosures ,
calling 1-800-477-0406, or e-mailing research.disclosure.inquiries@jpmorgan.com with your request.
Date Rating Price ($) Price Target
($)
26-Nov-19 OW 59.35 65
24-Feb-20 OW 63.31 69
23-Mar-20 OW 37.37 51
18-May-20 OW 47.17 52
21-May-20 OW 50.85 60
12-Aug-20 OW 57.51 63
18-Sep-20 OW 55.94 66
18-Nov-20 OW 61.14 70
04-Jan-21 OW 68.29 74
07-Apr-21 OW 67.64 78
17-May-21 OW 72.43 81
20-May-21 OW 67.38 80
16-Aug-21 OW 70.49 86
19-Nov-21 OW 73.10 92
17-Feb-22 OW 67.10 85
23-Feb-22 OW 65.25 81
16-May-22 OW 57.19 76
25-Jul-22 OW 63.76 71
16-Sep-22 OW 64.88 80
The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire period.
J.P. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated
Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe:
J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the average
total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve months, we expect
this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.]
7Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of the stocks in the analyst’s
(or the analyst’s team’s) coverage universe.] Not Rated (NR): J.P. Morgan has removed the rating and, if applicable, the price target, for this
stock because of either a lack of a sufficient fundamental basis or for legal, regulatory or policy reasons. The previous rating and, if applicable,
the price target, no longer should be relied upon. An NR designation is not a recommendation or a rating. In our Asia (ex-Australia and ex-India)
and U.K. small- and mid-cap equity research, each stock’s expected total return is compared to the expected total return of a benchmark country
market index, not to those analysts’ coverage universe. If it does not appear in the Important Disclosures section of this report, the certifying
analyst’s coverage universe can be found on J.P. Morgan’s research website, https://www.jpmorganmarkets.com.
Coverage Universe: Boss, Matthew R: Abercrombie & Fitch (ANF), Allbirds (BIRD), American Eagle Outfitters (AEO), Bath & Body Works
Inc (BBWI), Big Lots, Inc. (BIG), Boot Barn (BOOT), Brilliant Earth (BRLT), Burlington Stores (BURL), Capri Holdings Ltd (CPRI),
Dillard's, Inc. (DDS), Dollar General Corp. (DG), Dollar Tree, Inc. (DLTR), Five Below (FIVE), Foot Locker (FL), Kohl's Corp. (KSS), Levi
Strauss & Co. (LEVI), Macy's, Inc. (M), Mytheresa (MYTE), NIKE, Inc. (NKE), Nordstrom, Inc. (JWN), Ollie's Bargain Outlet Holdings
(OLLI), PVH Corp. (PVH), Ralph Lauren Corporation (RL), Ross Stores (ROST), TJX Companies (TJX), Tapestry Inc (TPR), The Gap, Inc.
(GPS), Under Armour, Inc. (UAA), Urban Outfitters (URBN), V.F. Corporation (VFC), Victoria's Secret (VSCO), lululemon athletica inc.
(LULU)
J.P. Morgan Equity Research Ratings Distribution, as of October 01, 2022
Overweight
(buy)
Neutral
(hold)
Underweight
(sell)
J.P. Morgan Global Equity Research Coverage* 50% 37% 13%
IB clients** 50% 46% 33%
JPMS Equity Research Coverage* 50% 38% 12%
IB clients** 70% 68% 50%
*Please note that the percentages might not add to 100% because of rounding.
**Percentage of subject companies within each of the "buy," "hold" and "sell" categories for which J.P. Morgan has provided
investment banking services within the previous 12 months.
For purposes only of FINRA ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls
into a hold rating category; and our Underweight rating falls into a sell rating category. Please note that stocks with an NR designation
are not included in the table above. This information is current as of the end of the most recent calendar quarter.
Equity Valuation and Risks: For valuation methodology and risks associated with covered companies or price targets for covered companies,
please see the most recent company-specific research report at http://www.jpmorganmarkets.com, contact the primary analyst or your J.P.
Morgan representative, or email research.disclosure.inquiries@jpmorgan.com. For material information about the proprietary models used,
please see the Summary of Financials in company-specific research reports and the Company Tearsheets, which are available to download on
the company pages of our client website, http://www.jpmorganmarkets.com. This report also sets out within it the material underlying
assumptions used.
A history of J.P. Morgan investment recommendations disseminated during the preceding 12 months can be accessed on the Research &
Commentary page of http://www.jpmorganmarkets.com where you can also search by analyst name, sector or financial instrument.
Analysts' Compensation:The research analysts responsible for the preparation of this report receive compensation based upon various factors,
including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues.
Other Disclosures
J.P. Morgan is a marketing name for investment banking businesses of JPMorgan Chase & Co. and its subsidiaries and affiliates worldwide.
UK MIFID FICC research unbundling exemption: UK clients should refer to UK MIFID Research Unbundling exemption for details of
JPMorgan’s implementation of the FICC research exemption and guidance on relevant FICC research categorisation.
All research material made available to clients are simultaneously available on our client website, J.P. Morgan Markets, unless specifically
permitted by relevant laws. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research
material available on a particular stock, please contact your sales representative.
Any long form nomenclature for references to China; Hong Kong; Taiwan; and Macau within this research material are Mainland China; Hong
Kong SAR (China); Taiwan (China); and Macau SAR (China).
J.P. Morgan Research may, from time to time, write on issuers or securities targeted by economic or financial sanctions imposed or administered
by the governmental authorities of the U.S., EU, UK or other relevant jurisdictions (Sanctioned Securities). Nothing in this report is intended to
be read or construed as encouraging, facilitating, promoting or otherwise approving investment or dealing in such Sanctioned Securities. Clients
should be aware of their own legal and compliance obligations when making investment decisions.
Any digital or crypto assets discussed in this research report are subject to a rapidly changing regulatory landscape. For relevant regulatory
8Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
advisories on crypto assets, including bitcoin and ether, please see https://www.jpmorgan.com/disclosures/cryptoasset-disclosure .
The author(s) of this research report may not be licensed to carry on regulated activities in your jurisdiction and, if not licensed, do not hold
themselves out as being able to do so.
Exchange-Traded Funds (ETFs): J.P. Morgan Securities LLC (“JPMS”) acts as authorized participant for substantially all U.S.-listed ETFs. To
the extent that any ETFs are mentioned in this report, JPMS may earn commissions and transaction-based compensation in connection with the
distribution of those ETF shares and may earn fees for performing other trade-related services, such as securities lending to short sellers of the
ETF shares. JPMS may also perform services for the ETFs themselves, including acting as a broker or dealer to the ETFs. In addition, affiliates
of JPMS may perform services for the ETFs, including trust, custodial, administration, lending, index calculation and/or maintenance and other
services.
Options and Futures related research: If the information contained herein regards options- or futures-related research, such information is
available only to persons who have received the proper options or futures risk disclosure documents. Please contact your J.P. Morgan
Representative or visit https://www.theocc.com/components/docs/riskstoc.pdf for a copy of the Option Clearing Corporation's Characteristics
and Risks of Standardized Options or http://www.finra.org/sites/default/files/Security_Futures_Risk_Disclosure_Statement_2018.pdf for a copy
of the Security Futures Risk Disclosure Statement.
Changes to Interbank Offered Rates (IBORs) and other benchmark rates: Certain interest rate benchmarks are, or may in the future
become, subject to ongoing international, national and other regulatory guidance, reform and proposals for reform. For more information, please
consult: https://www.jpmorgan.com/global/disclosures/interbank_offered_rates
Private Bank Clients: Where you are receiving research as a client of the private banking businesses offered by JPMorgan Chase & Co. and its
subsidiaries (“J.P. Morgan Private Bank”), research is provided to you by J.P. Morgan Private Bank and not by any other division of J.P. Morgan,
including, but not limited to, the J.P. Morgan Corporate and Investment Bank and its Global Research division.
Legal entity responsible for the production and distribution of research: The legal entity identified below the name of the Reg AC Research
Analyst who authored this material is the legal entity responsible for the production of this research. Where multiple Reg AC Research Analysts
authored this material with different legal entities identified below their names, these legal entities are jointly responsible for the production of
this research. Research Analysts from various J.P. Morgan affiliates may have contributed to the production of this material but may not be
licensed to carry out regulated activities in your jurisdiction (and do not hold themselves out as being able to do so). Unless otherwise stated
below, this material has been distributed by the legal entity responsible for production. If you have any queries, please contact the relevant
Research Analyst in your jurisdiction or the entity in your jurisdiction that has distributed this research material.
Legal Entities Disclosures and Country-/Region-Specific Disclosures:
Argentina: JPMorgan Chase Bank N.A Sucursal Buenos Aires is regulated by Banco Central de la República Argentina (“BCRA”- Central
Bank of Argentina) and Comisión Nacional de Valores (“CNV”- Argentinian Securities Commission” - ALYC y AN Integral N°51). Australia:
J.P. Morgan Securities Australia Limited (“JPMSAL”) (ABN 61 003 245 234/AFS Licence No: 238066) is regulated by the Australian
Securities and Investments Commission and is a Market, Clearing and Settlement Participant of ASX Limited and CHI-X. This material is
issued and distributed in Australia by or on behalf of JPMSAL only to "wholesale clients" (as defined in section 761G of the Corporations Act
2001). A list of all financial products covered can be found by visiting https://www.jpmm.com/research/disclosures . J.P. Morgan seeks to cover
companies of relevance to the domestic and international investor base across all Global Industry Classification Standard (GICS) sectors, as well
as across a range of market capitalisation sizes. If applicable, in the course of conducting public side due diligence on the subject company(ies),
the Research Analyst team may at times perform such diligence through corporate engagements such as site visits, discussions with company
representatives, management presentations, etc. Research issued by JPMSAL has been prepared in accordance with J.P. Morgan Australia’s
Research Independence Policy which can be found at the following link: J.P. Morgan Australia - Research Independence Policy . Brazil: Banco
J.P. Morgan S.A. is regulated by the Comissao de Valores Mobiliarios (CVM) and by the Central Bank of Brazil. Ombudsman J.P. Morgan:
0800-7700847 / ouvidoria.jp.morgan@jpmorgan.com. Canada: J.P. Morgan Securities Canada Inc. is a registered investment dealer, regulated
by the Investment Industry Regulatory Organization of Canada and the Ontario Securities Commission and is the participating member on
Canadian exchanges. This material is distributed in Canada by or on behalf of J.P.Morgan Securities Canada Inc. Chile: Inversiones J.P. Morgan
Limitada is an unregulated entity incorporated in Chile. China: J.P. Morgan Securities (China) Company Limited has been approved by CSRC
to conduct the securities investment consultancy business. Dubai International Financial Centre (DIFC): JPMorgan Chase Bank, N.A., Dubai
Branch is regulated by the Dubai Financial Services Authority (DFSA) and its registered address is Dubai International Financial Centre - The
Gate, West Wing, Level 3 and 9 PO Box 506551, Dubai, UAE. This material has been distributed by JP Morgan Chase Bank, N.A., Dubai
Branch to persons regarded as professional clients or market counterparties as defined under the DFSA rules. European Economic Area
(EEA): Unless specified to the contrary, research is distributed in the EEA by J.P. Morgan SE (“JPM SE”), which is subject to prudential
supervision by the European Central Bank (“ECB”) in cooperation with BaFin and Deutsche Bundesbank in Germany. JPM SE is a company
headquartered in Frankfurt with registered address at TaunusTurm, Taunustor 1, Frankfurt am Main, 60310, Germany. The material has been
distributed in the EEA to persons regarded as professional investors (or equivalent) pursuant to Art. 4 para. 1 no. 10 and Annex II of MiFID II
and its respective implementation in their home jurisdictions (“EEA professional investors”). This material must not be acted on or relied on by
persons who are not EEA professional investors. Any investment or investment activity to which this material relates is only available to EEA
relevant persons and will be engaged in only with EEA relevant persons. Hong Kong: J.P. Morgan Securities (Asia Pacific) Limited (CE
number AAJ321) is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission in Hong Kong, and J.P.
Morgan Broking (Hong Kong) Limited (CE number AAB027) is regulated by the Securities and Futures Commission in Hong Kong. JP Morgan
Chase Bank, N.A., Hong Kong (CE Number AAL996) is regulated by the Hong Kong Monetary Authority and the Securities and Futures
9Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
Commission, is organized under the laws of the United States with limited liability. Where the distribution of this material is a regulated activity
in Hong Kong, the material is distributed in Hong Kong by or through J.P. Morgan Securities (Asia Pacific) Limited and/or J.P. Morgan Broking
(Hong Kong) Limited. India: J.P. Morgan India Private Limited (Corporate Identity Number - U67120MH1992FTC068724), having its
registered office at J.P. Morgan Tower, Off. C.S.T. Road, Kalina, Santacruz - East, Mumbai – 400098, is registered with the Securities and
Exchange Board of India (SEBI) as a ‘Research Analyst’ having registration number INH000001873. J.P. Morgan India Private Limited is also
registered with SEBI as a member of the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited (SEBI
Registration Number – INZ000239730) and as a Merchant Banker (SEBI Registration Number - MB/INM000002970). Telephone: 91-22-6157
3000, Facsimile: 91-22-6157 3990 and Website: http://www.jpmipl.com. JPMorgan Chase Bank, N.A. - Mumbai Branch is licensed by the
Reserve Bank of India (RBI) (Licence No. 53/ Licence No. BY.4/94; SEBI - IN/CUS/014/ CDSL : IN-DP-CDSL-444-2008/ IN-DP-NSDL-285-
2008/ INBI00000984/ INE231311239) as a Scheduled Commercial Bank in India, which is its primary license allowing it to carry on Banking
business in India and other activities, which a Bank branch in India are permitted to undertake. For non-local research material, this material is
not distributed in India by J.P. Morgan India Private Limited. Indonesia: PT J.P. Morgan Sekuritas Indonesia is a member of the Indonesia Stock
Exchange and is registered and supervised by the Otoritas Jasa Keuangan (OJK). Korea: J.P. Morgan Securities (Far East) Limited, Seoul
Branch, is a member of the Korea Exchange (KRX). JPMorgan Chase Bank, N.A., Seoul Branch, is licensed as a branch office of foreign bank
(JPMorgan Chase Bank, N.A.) in Korea. Both entities are regulated by the Financial Services Commission (FSC) and the Financial Supervisory
Service (FSS). For non-macro research material, the material is distributed in Korea by or through J.P. Morgan Securities (Far East) Limited,
Seoul Branch. Japan: JPMorgan Securities Japan Co., Ltd. and JPMorgan Chase Bank, N.A., Tokyo Branch are regulated by the Financial
Services Agency in Japan. Malaysia: This material is issued and distributed in Malaysia by JPMorgan Securities (Malaysia) Sdn Bhd (18146-
X), which is a Participating Organization of Bursa Malaysia Berhad and holds a Capital Markets Services License issued by the Securities
Commission in Malaysia. Mexico: J.P. Morgan Casa de Bolsa, S.A. de C.V.and J.P. Morgan Grupo Financiero are members of the Mexican
Stock Exchange and are authorized to act as a broker dealer by the National Banking and Securities Exchange Commission. New Zealand: This
material is issued and distributed by JPMSAL in New Zealand only to "wholesale clients" (as defined in the Financial Markets Conduct Act
2013). JPMSAL is registered as a Financial Service Provider under the Financial Service providers (Registration and Dispute Resolution) Act of
2008. Pakistan: J. P. Morgan Pakistan Broking (Pvt.) Ltd is a member of the Karachi Stock Exchange and regulated by the Securities and
Exchange Commission of Pakistan. Philippines: J.P. Morgan Securities Philippines Inc. is a Trading Participant of the Philippine Stock
Exchange and a member of the Securities Clearing Corporation of the Philippines and the Securities Investor Protection Fund. It is regulated by
the Securities and Exchange Commission. Russia: CB J.P. Morgan Bank International LLC is regulated by the Central Bank of Russia.
Singapore: This material is issued and distributed in Singapore by or through J.P. Morgan Securities Singapore Private Limited (JPMSS) [MCI
(P) 060/08/2022 and Co. Reg. No.: 199405335R], which is a member of the Singapore Exchange Securities Trading Limited, and/or JPMorgan
Chase Bank, N.A., Singapore branch (JPMCB Singapore), both of which are regulated by the Monetary Authority of Singapore. This material is
issued and distributed in Singapore only to accredited investors, expert investors and institutional investors, as defined in Section 4A of the
Securities and Futures Act, Cap. 289 (SFA). This material is not intended to be issued or distributed to any retail investors or any other investors
that do not fall into the classes of “accredited investors,” “expert investors” or “institutional investors,” as defined under Section 4A of the SFA.
Recipients of this material in Singapore are to contact JPMSS or JPMCB Singapore in respect of any matters arising from, or in connection
with, the material. As at the date of this material, JPMSS is a designated market maker for certain structured warrants listed on the Singapore
Exchange where the underlying securities may be the securities discussed in this material. Arising from its role as a designated market maker for
such structured warrants, JPMSS may conduct hedging activities in respect of such underlying securities and hold or have an interest in such
underlying securities as a result. The updated list of structured warrants for which JPMSS acts as designated market maker may be found on the
website of the Singapore Exchange Limited: http://www.sgx.com. South Africa: J.P. Morgan Equities South Africa Proprietary Limited and
JPMorgan Chase Bank, N.A., Johannesburg Branch are members of the Johannesburg Securities Exchange and are regulated by the Financial
Services Board. Taiwan: J.P. Morgan Securities (Taiwan) Limited is a participant of the Taiwan Stock Exchange (company-type) and regulated
by the Taiwan Securities and Futures Bureau. Material relating to equity securities is issued and distributed in Taiwan by J.P. Morgan Securities
(Taiwan) Limited, subject to the license scope and the applicable laws and the regulations in Taiwan. According to Paragraph 2, Article 7-1 of
Operational Regulations Governing Securities Firms Recommending Trades in Securities to Customers (as amended or supplemented) and/or
other applicable laws or regulations, please note that the recipient of this material is not permitted to engage in any activities in connection with
the material that may give rise to conflicts of interests, unless otherwise disclosed in the “Important Disclosures” in this material. Thailand:
This material is issued and distributed in Thailand by JPMorgan Securities (Thailand) Ltd., which is a member of the Stock Exchange of
Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission, and its registered address is 3rd Floor, 20
North Sathorn Road, Silom, Bangrak, Bangkok 10500. UK: Unless specified to the contrary, research is distributed in the UK by J.P. Morgan
Securities plc (“JPMS plc”) which is a member of the London Stock Exchange and is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation Authority. JPMS plc is registered in England & Wales No. 2711006,
Registered Office 25 Bank Street, London, E14 5JP. This material is directed in the UK only to: (a) persons having professional experience in
matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) (Order) 2005
(“the FPO”); (b) persons outlined in article 49 of the FPO (high net worth companies, unincorporated associations or partnerships, the trustees of
high value trusts, etc.); or (c) any persons to whom this communication may otherwise lawfully be made; all such persons being referred to as
"UK relevant persons". This material must not be acted on or relied on by persons who are not UK relevant persons. Any investment or
investment activity to which this material relates is only available to UK relevant persons and will be engaged in only with UK relevant persons.
Research issued by JPMS plc has been prepared in accordance with JPMS plc's policy for prevention and avoidance of conflicts of interest
related to the production of Research which can be found at the following link: J.P. Morgan EMEA - Research Independence Policy . U.S.: J.P.
Morgan Securities LLC (“JPMS”) is a member of the NYSE, FINRA, SIPC, and the NFA. JPMorgan Chase Bank, N.A. is a member of the
FDIC. Material published by non-U.S. affiliates is distributed in the U.S. by JPMS who accepts responsibility for its content.
10
Matthew R. Boss, CPA
(1-212) 622-2630
matthew.boss@jpmorgan.com
North America Equity Research
16 November 2022 J P M O R G A N
General: Additional information is available upon request. The information in this material has been obtained from sources believed to be
reliable. While all reasonable care has been taken to ensure that the facts stated in this material are accurate and that the forecasts, opinions and
expectations contained herein are fair and reasonable, JPMorgan Chase & Co. or its affiliates and/or subsidiaries (collectively J.P. Morgan) make
no representations or warranties whatsoever to the completeness or accuracy of the material provided, except with respect to any disclosures
relative to J.P. Morgan and the Research Analyst's involvement with the issuer that is the subject of the material. Accordingly, no reliance should
be placed on the accuracy, fairness or completeness of the information contained in this material. There may be data discrepancy in this material
as a result of calculations, adjustments and/or translations to different languages, as applicable. J.P. Morgan accepts no liability whatsoever for
any loss arising from any use of this material or its contents, and neither J.P. Morgan nor any of its respective directors, officers or employees,
shall be in any way responsible for the contents hereof, apart from the liabilities and responsibilities that may be imposed on them by the
relevant regulatory authority in the jurisdiction in question, or the regulatory regime thereunder. Opinions, forecasts or projections contained in
this material represent J.P. Morgan's current opinions or judgment as of the date of the material only and are therefore subject to change without
notice. Periodic updates may be provided on companies/industries based on company-specific developments or announcements, market
conditions or any other publicly available information. There can be no assurance that future results or events will be consistent with any such
opinions, forecasts or projections, which represent only one possible outcome. Furthermore, such opinions, forecasts or projections are subject
to certain risks, uncertainties and assumptions that have not been verified, and future actual results or events could differ materially. The value
of, or income from, any investments referred to in this material may fluctuate and/or be affected by changes in exchange rates. All pricing is
indicative as of the close of market for the securities discussed, unless otherwise stated. Past performance is not indicative of future results.
Accordingly, investors may receive back less than originally invested. This material is not intended as an offer or solicitation for the purchase or
sale of any financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, objectives,
or needs and are not intended as recommendations of particular securities, financial instruments or strategies to particular clients. The recipients
of this material must make their own independent decisions regarding any securities or financial instruments mentioned herein and should seek
advice from such independent financial, legal, tax or other adviser as they deem necessary. J.P. Morgan may trade as a principal on the basis of
the Research Analysts’ views and research, and it may also engage in transactions for its own account or for its clients’ accounts in a manner
inconsistent with the views taken in this material, and J.P. Morgan is under no obligation to ensure that such other communication is brought to
the attention of any recipient of this material. Others within J.P. Morgan, including Strategists, Sales staff and other Research Analysts, may take
views that are inconsistent with those taken in this material. Employees of J.P. Morgan not involved in the preparation of this material may have
investments in the securities (or derivatives of such securities) mentioned in this material and may trade them in ways different from those
discussed in this material. This material is not an advertisement for or marketing of any issuer, its products or services, or its securities in any
jurisdiction.
"Other Disclosures" last revised November 12, 2022.
Copyright 2022 JPMorgan Chase & Co. All rights reserved. This material or any portion hereof may not be reprinted, sold or
redistributed without the written consent of J.P. Morgan. #$J&098$#*P
Completed 16 Nov 2022 01:24 PM EST Disseminated 16 Nov 2022 01:24 PM EST