Will TJX Companies Stock Benefit from Its Fiscal 2Q18 Results?
TJX’s YTD movement
Leading off-price retailer TJX Companies (TJX) is scheduled to announce its fiscal 2Q18 (ended July 29, 2017) results on August 15. The company’s stock price has fallen 4.8% on a YTD (year-to-date) basis as of August 8.
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Comparison with peers
The stock price of Ross Stores (ROST) has fallen 14.8% YTD, while Burlington Stores (BURL) has risen 3.0%. Overall, TJX Companies and its off-price retailer peers have underperformed the S&P 500 Index, which has risen 10.5% YTD as of August 8.
These off-price retailer stocks have also lagged behind the Consumer Discretionary Select Sector SPDR Fund (XLY), which has risen 12.1% YTD.
Fiscal 1Q18 results
TJX stock fell 4.1% on May 16 in reaction to the fiscal 1Q18 results. The company missed the analysts’ consensus sales estimate for fiscal 1Q18, which disappointed investors and sent a signal that even off-price retailers are not immune to the growing competition from online retailers like Amazon.com (AMZN).
Still, off-price retailers have been performing better than department store chains like Macy’s (M) and Kohl’s (KSS), driving more store traffic by attracting consumers by offering deep discounts on their merchandise.
In this series on TJX Companies’ upcoming fiscal 2Q18 results, we’ll discuss expectations for the company’s sales, margins, and earnings. We’ll also look at analysts’ recommendations for TJX stock.
In the next part, we’ll focus on TJX’s sales expectations.