TJX Companies is one of the most well-known off-price retailers in the US. The company sells home fashions, apparel, and a range of other merchandise through brands like T.J. Maxx, T.K. Maxx, Winners, Marshalls, HomeGoods, and Sierra. The TJX Companies is known to undercut regular retail prices from anywhere between 20% and 60%. Most of TJX’s business is concentrated in the US. It earned close to 76% of its total revenue for fiscal 2020 from the US.
The Most Recent Earnings Release
TJX Companies released its Q32021 earnings in November of 2020. Retailers around the world have been severely impacted by lockdowns resulting from the pandemic as well as low footfalls. The third quarter of 2021 was the first quarter in months when all TJX stores were open. According to company CEO Ernie Herrman, “I am very pleased that both our sales and earnings per share well exceeded our plans. Overall open-only comp store sales were down 5% and earnings per share were $0.71. Further, 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.”
TJX Companies still faces some headwinds due to consumer behavior amidst the pandemic, which still hasn’t gone away, as well as certain limitations in the way it operates due to safety and occupancy guidelines issued by local governments around the world.
TJX Companies stock closed at $64 on 29th January 2021, down about 4% for the preceding month. At that time, the dividend yield was 1.62%. The stock has bounced back 74% since hitting lows in March 2020. Another well-known discount retailer is Ross Stores. Its stock closed at $111 on 29th January 2021. Ross Stores was down almost 5% for the preceding month and has gained 76% since the March 2020 market fall.