TJX Companies

In fiscal 2014, Nordstrom’s operating margins declined by another 9.8% on the heels of a 10.8% decline in fiscal 2013.

TJX Companies (TJX) will announce its results for the second quarter of fiscal 2016 on August 18. The second quarter ended on August 1, 2015.

Macy’s (M) operating margins declined to 6.6% in 1Q15—ending May 2, 2015—from 7.1% in the same quarter last year. The operating income declined by 7.7%.

The Consumer Sentiment Index for March 2015 declined to 93 from 95.4 in the month of February due to slightly higher gas prices and bad weather.

Five Below (FIVE) stock has been on an uptrend on 2018 and has gained 47.9% YTD (year-to-date) as of July 5.

Nordstrom (JWN) raised its outlook for fiscal 2015, which ends January 30, 2016, backed by strong sales growth in the first half of 2015.

On a year-to-date basis, Ross Stores’ stock price has appreciated more than that of other off-price retailers.

Burlington Stores stock was up 8.4% as of 11:15 AM EST today in reaction to better-than-expected results for the first quarter, which ended on May 5.

Following the strong results in fiscal 2Q17, TJX Companies raised its earnings outlook for fiscal 2017. TJX expects its fiscal 2017 EPS to be in the $3.39–$3.43 range.

On May 5, 2015, Macy’s (M) announced that it will enter the off-price business through four pilot stores in New York City.

Major off-price retailers have strong margins supported by lean operating models, efficient inventory management, and strong vendor relationships.

In fiscal 2016, Nordstrom plans to open three new full-line stores and 20 new Nordstrom Rack stores. The company also plans to relocate one full-line store and two Nordstrom Rack stores in fiscal 2016.

Kohl’s stock plunged 9.5% while JCPenney was down 11% today at 1:01 PM ET. These department store chains announced dismal holiday sales.

In the first six months of fiscal 2016, HomeGoods accounted for 12.2% of the consolidated net sales of TJX Companies. That’s up from 11.2% in the comparable period of the previous year.

Macy’s (NYSE:M) stock rose 4.0% as of 10:00 AM ET on June 9. The company said that it has experienced better-than-expected sales at reopened stores.

Average hourly earnings increased 0.1% month-over-month and 2.0% year-over-year to $24.78 an hour. Average weekly hours were flat at 34.6.

The TJX Companies’ acquisition of Trade Secret marks the company’s presence in its eighth country and third continent.

Ross Stores and Burlington Stores stocks have risen 8.9% and 1.2%, respectively, on a year-to-date basis as of January 14.

Ross Stores, which falls in the moderate off-price space, does not seem to be keen on expanding its e-commerce business and does not have an online store.

TJX Companies’ HomeGoods segment reported strong same-store sales growth of 6%. The segment’s net sales grew by 12.8% to $959.8 million in 3Q16.

Ross Stores, a major player in the US off-price retail space, sells apparel, accessories, footwear, and home fashions at 20–60% discounts.

As of March 24, 2016, TJX Companies was trading at a 12-month forward PE ratio of 22.3x—higher than other off-price retailers in its peer group.

As of May 11, Nordstrom was trading at higher valuations compared to most of its peers in the department store and off-price retail categories.

On May 21, TJX Companies (NYSE:TJX) reported weaker-than-expected results for the first quarter of fiscal 2021. COVID-19 impacted the results.

Macy’s entered the off-price retail space in September 2015 with the launch of three of its pilot Macy’s Backstage off-price stores.

Macy’s opened its first international store under its Bloomingdale’s brand in Dubai in 2010. Nordstrom opened its first Canadian store in Calgary’s Chinook Centre in September 2014.

In 2Q15, Nordstrom Rack store sales increased by 12.9% to $857 million from the comparable quarter of the previous year.

The success of off-price retailers such as TJX Companies and Ross Stores (ROST) has been attracting many players to this space. In September 2015, Macy’s opened three off-price Macy’s Backstage stores in New York.

Nordstrom is currently trading at a higher valuation than its department store peers Macy’s (M) and Kohl’s (KSS)

Macy’s (NYSE:M) and Kohl’s (NYSE:KSS) stocks were down 6.0% and 6.3% as of 12:45 PM ET today following a rating downgrade.

Kohl (NYSE:KSS) stock rose 4.1% in pre-market hours trading today. However, the stock fell 2.2% as of 12:31 PM ET amid volatile market conditions.

Best Buy reported impressive fourth-quarter results due to strong holiday sales. The company’s overall revenue grew 2.7% YoY to $15.20 billion.

TJX Companies stock touched a new 52-week high of $64.95 on Wednesday. The company declared strong fourth-quarter results and a dividend hike.

The US retail industry is transforming at a rapid rate. Let’s take a look at the top seven retailers in the US by market capitalization.

Walmart (WMT) has a long history and strong brand name recognition. But is there reason to believe WMT stock could actually withstand an economic meltdown?

Burlington Stores (BURL) beat analysts’ earnings expectations in the first three quarters of fiscal 2019. Here’s what to expect in 2020.

Off-price retailers emerged as consistent performers in the retail space. The stock of Ross Stores (ROST) and TJX Companies (TJX) surged 38.8% and 34.9%

UA’s product, marketing, and sales teams each play an active role in the design process. This collaboration helps control brand and product consistency.

Target opened 15 new stores in fiscal 2016. Its same-store sales rose 2.1%, with customer traffic at stores up 1.3%.

Macy’s (M) earnings for the third quarter yet again reflected the struggle that’s facing department stores in this highly competitive retail market.

Yesterday, Macy’s (M) stock fell 10.9% after department store peer Kohl’s (KSS) announced weak third-quarter results and shared a gloomy outlook.

TJX Companies (TJX) reported better-than-expected earnings results for the third quarter of fiscal 2020, which ended on November 2.

TJX Companies (TJX) is scheduled to announce its fiscal 2020 third-quarter earnings results on November 19. Its third quarter ended on November 2.

The retail sales for 2018 were $4.3 trillion. From January to July 2019, the retail sales in this category rose 3.5% over the comparable period in 2018.

On May 14, Baird initiated coverage of TJX Companies (TJX) stock with an “outperform” rating and a price target of $63.

While several retailers and department stores are closing down stores amid intense competition from online retailers, off-price retailers TJX Companies and Ross Stores (ROST) see a tremendous opportunity to grow their store base.

Margins of both TJX Companies (TJX) and Ross Stores (ROST) have been under pressure due to higher freight costs and wages.

Burlington Stores (BURL) is slated to announce its results for the third quarter of fiscal 2018 on November 28. Here’s what you can expect.

TJX Companies and Ross Stores fell 4.4% and 9.4%, respectively, on November 20, the day they announced their earnings results.

TJX Companies (TJX) stock has risen by an impressive 40.6% on a YTD basis as of November 13.

Burlington Stores (BURL) has had same-store sales growth for 22 consecutive quarters, which reflects the strength of its off-price business model.

As of July 5, Five Below (FIVE) was trading at a 12-month forward PE multiple of 36.4x.

Burlington Stores (BURL) generated net sales of $1.94 billion in fiscal 4Q17, which exceeded analysts’ consensus sales estimate of $1.89 billion.

On March 8, 2018, Ross Stores (ROST) was trading at a 12-month forward PE (price-to-earnings) multiple of 18.4x.

Burlington Stores (BURL) is taking several initiatives to deliver continued strong sales growth rates in a challenging market.

For fiscal 2Q18, TJX expects its fiscal 2Q18 gross margin to be in the 28.6%–28.7% range, compared with its gross margin of 29.4% in fiscal 2Q17.

In fiscal 2016, Ross Stores’s gross margin increased 50 basis points to 28.7%.

Despite a rough retail environment, off-price retailers TJX Companies (TJX), Ross Stores (ROST), and Burlington Stores (BURL) have been delivering strong sales growth. In this series, we’ll compare their margins, stock price movements, and analyst recommendations.

Headquartered in Tennessee, Dollar General (DG) is the largest discount store retailer in the United States in terms of total sales.

TJX Companies anticipates its TJX Canada segment to deliver same-store sales growth of 7%–8% in fiscal 2017 and sales of $3.1 billion–$3.2 billion.

Nordstrom’s off-price Rack business continued to display strength in fiscal 2Q16 ended July 30, 2016.

TJX Companies’ (TJX) gross margin in fiscal 1Q17 rose by 50 basis points on a year-over-year basis to 28.8%.

Aside from operating full-line upscale stores, Nordstrom also conducts off-price business through its Nordstrom Rack stores and off-price digital channels.

By the end of fiscal 2015, TJX Companies had 2,697 off-price stores in the US under the names T. J. Maxx, Marshalls, HomeGoods, and Sierra Trading Post.

Efficient inventory management is one of the key attributes of off-price retailers like TJX Companies (TJX) and Ross Stores (ROST).

The lean business models and low-cost structures of off-price retailers TJX Companies and Ross Stores have helped them sustain high operating margins.

The US business of TJX Companies consists of 1,156 T.J. Maxx stores, 1,007 Marshalls stores, 526 HomeGoods stores, and eight Sierra Trading Post stores.

Burlington has been focusing on opening smaller stores. The average size of the new stores opened in 2013 and 2014 was a little over 60,000 square feet.

Burlington Stores targets the value-conscious, middle-class consumer. The number of customers making purchases at the company’s stores is large.

Burlington Stores launched its e-commerce website in 1999, making it the first off-price retailer to have an online presence.

On January 7, 2016, Nordstrom (JWN) announced its plans to open an off-price Nordstrom Rack store in Braintree, Massachusetts, in fall 2016.

Nordstrom (JWN) has aggressively expanded into the off-price space through its Nordstrom Rack stores.

In fiscal 2014, which for Burlington ended January 31, 2015, the company reported same-store sales growth of 4.9%, compared to 4.7% in fiscal 2013.

Burlington Stores derives its revenue from the sale of value-priced apparel, coats, and family footwear, baby furniture, accessories, home décor, and gifts.

Burlington follows an EDLP model, which helps customers get up to 60–70% savings off prices of similar merchandise in department and specialty stores.

In 2016, the US off-price retail market segment is getting interesting, with more and more major department stores branching into this lucrative space.

Same-store sales represent the change in sales of the existing stores of a retailer over a certain period of time.

Kohl’s sells private label merchandise as well as national brands. The company purchases merchandise from several domestic and foreign suppliers.

Ross Stores’ inventory management system is supported by its strong supplier relationships and the strategic location of its buying offices.

On October 25, The TJX Companies announced the completion of its acquisition of Trade Secret, an off-price retailer based in Australia.

2Q15 marked the 26th consecutive quarter of positive same-store sales growth for Ross Stores. Its last fall in same-store sales growth was in the 4Q08.

In fiscal 2014, women’s apparel accounted for 29% of Ross Stores’ sales of $11 billion. Home accents is also a key category at 24% of total sales.

Ross Stores operates under two trademarks: Ross Dress for Less and dd’s DISCOUNTS. There are 1,259 Dress for Less and 165 dd’s DISCOUNTS stores in the US.

TJX Companies (TJX) expects its gross margin for the second quarter of fiscal 2016 to come in the range 28.5% to 28.6% range.

The Bloomberg Consumer Comfort Index declined to 40.3 in the week ended August 2 on a week-over-week basis. The index stood at 40.5 in the previous week.

The Bloomberg Consumer Comfort Index fell to 40.5 in the week ended July 26, from 42.4 in the week before. This is the fourth week of decline and the second lowest level since November 2014.

Nordstrom has strong multichannel capabilities through offline stores, online websites, and off-price stores. These have helped boost sales in tough economic times.

Facing heavy competition from online retailers, US department store sales have declined recently. Department stores are looking for growth opportunities in international markets.

In 4Q15, TJX reported a 4.0% growth in same-store sales, compared with 4Q14. This growth was driven by an increase in store traffic across all divisions.

In March, Nordstrom announced the opening of its second international location in Canada. Nordstrom plans to open six Canadian stores through 2017.

Sales of Nordstrom’s full-line stores declined by 0.3% in contrast to sales of off-price Rack stores that increased by 17.4% to $3.2 billion.

The FOMC was saying that monetary policy needs to stay accommodative for economic growth to get back on track. Can we interpret this as putting a lid on a mid-year rate hike?

Off-price retailers like TJX Companies sell merchandise at a discount of roughly 20.0%–60.0% compared to department stores.

The Challenger Job-Cut Report indicated that March job cuts were 27.6%, down from February 2015, but increased by 6.4% compared to March 2014.

With its off-price business model and operational efficiency, TJX Companies has consistently performed well, even in difficult economic conditions.

Among TJX Companies’ business segments, Marmaxx is the largest with 2,094 stores under the T.J. Maxx and Marshalls brands, and 64.3% of net sales.

The growth in TJX Companies’ same-store sales slowed down in fiscal 2015, growing by 2.0% compared to 3.0% in fiscal 2014.

TJX Companies (TJX) has a very efficient internally developed inventory management system that helps the company ensure the proper flow of merchandise.

TJX Companies (TJX) maintains strong supplier relationships with manufacturers and merchandise suppliers to ensure efficient levels of inventory.

TJX Companies’ debt-equity ratio is higher than closest off-price rival but lower than department stores since TJX has strong internally generated cash flow.