TJX Companies is best known for its off-price retail brands T.J. Maxx, T.K. Maxx, and Marshalls. The company also owns the Winners, Homesense, and Sierra brands. Off-price retailing has picked up significantly in the last few years and companies like TJX and Ross Stores have been some of the most popular names in the sector. Investors looking to buy retail stocks may want to consider these. Retail has been a tough sector in the year 2020 with plenty of headwinds due to the pandemic. However, in the long term, the sector is expected to do well.
Q3 2021 Earnings Beat Analyst Estimates
TJX Companies reported its third-quarter 2021 earnings on 18th November 2021. Revenue for the quarter was $10.12 billion, down from $10.45 billion achieved in Q32020 but above analyst estimates of $9.36 billion. Earnings per share were up from Q32020 levels of 68 cents per share to 71 cents per share. Analyst estimates for earnings were 40 cents per share.
Company CEO Ernie Herrman said, “sales exceeded our plans across each of our divisions. Our above-plan third-quarter results reinforce our confidence in the flexibility and strength of our business model over the long-term.” He further added, “To provide more detail on the drivers of our above-planned sales in the third quarter, we believe that the combination of improved merchandise mix, higher store inventory levels, our focus on safe in-store shopping experiences and the restart of our marketing campaigns were all factors.”
TJX Companies stock traded at a 1.62% dividend yield on 29th January 2021 while the stock price closed at $64.04 on that day. In comparison, Ross Stores’ stock was trading at a 1.02% yield after closing at $111.29 on 29th January 2021. Both TJX and Ross Stores are down for the preceding month. However, on a 1-year basis, TJX is up 6% while Ross Stores is down 2.2%.