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The TJX Companies (TJX) Looks Great: HomeGoods Unit a Key Driver
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Strength in the HomeGoods segment has been favoring The TJX Companies, Inc. (TJX - Free Report) . The company’s focus on marketing initiatives is yielding. The TJX Companies’ efforts to enhance the offline and online businesses look impressive.
Let’s delve deeper.
What’s Driving Growth for The TJX Companies?
The TJX Companies’ HomeGoods segment is seeing robust demand for a while. Owing to store closures amid the pandemic, management came up with a temporary new sales measure — open-only comp store sales — to offer a better view. During second-quarter fiscal 2022, open-only comp store sales surged 36% in the HomeGoods (U.S.) segment from fiscal 2020’s level. The upside can be attributed to solid growth in every major category as well as geographic region for HomeGoods and Home Sense. The TJX Companies is on track to roll out homegoods.com during the fiscal third quarter. With this launch, the company expects to offer impressive home fashion products at great value on its digital platform.
Image Source: Zacks Investment Research
The TJX Companies is committed toward boosting growth through effective marketing initiatives and loyalty programs. Its aggressive marketing and advertising campaigns through multiple mediums have been contributing to growth. In its last earnings call, management highlighted that it is on track to roll out effective marketing campaigns across television and digital media for the fall and holiday season. Also, the company’s treasure hunt shopping experience is gaining traction among shoppers. The TJX Companies’ gift-giving initiatives, unique among off-price retailers bode well. Also, the loyalty card program (which offers consumers a non-credit card choice and soft benefits such as early shopping hours) has been helpful in improving customer engagement.
The TJX Companies is benefiting from its solid store and e-commerce growth efforts. It regularly opens stores and is expanding rapidly across the United States, Europe, Canada and Australia. The TJX Companies opened 26 new stores, taking the total count to 4,665 during fiscal second-quarter. The company expanded its square footage by 0.5% from the previous quarter’s levels.
With an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to boost online sales and strengthen its e-commerce business. In the last earnings call, management highlighted that it is seeing impressive sales in the U.S. and U.K. online businesses. The company’s off-price model along with its strategic store locations, impressive brands and fashion products are likely to drive its performance, in stores and online.
We believe that such upsides are likely to help this Zacks Rank #2 (Buy) company stay in investors’ good books. Shares of The TJX Companies have increased 6.9% in the past three months compared with the industry’s growth of 6%.
Image: Bigstock
The TJX Companies (TJX) Looks Great: HomeGoods Unit a Key Driver
Strength in the HomeGoods segment has been favoring The TJX Companies, Inc. (TJX - Free Report) . The company’s focus on marketing initiatives is yielding. The TJX Companies’ efforts to enhance the offline and online businesses look impressive.
Let’s delve deeper.
What’s Driving Growth for The TJX Companies?
The TJX Companies’ HomeGoods segment is seeing robust demand for a while. Owing to store closures amid the pandemic, management came up with a temporary new sales measure — open-only comp store sales — to offer a better view. During second-quarter fiscal 2022, open-only comp store sales surged 36% in the HomeGoods (U.S.) segment from fiscal 2020’s level. The upside can be attributed to solid growth in every major category as well as geographic region for HomeGoods and Home Sense. The TJX Companies is on track to roll out homegoods.com during the fiscal third quarter. With this launch, the company expects to offer impressive home fashion products at great value on its digital platform.
Image Source: Zacks Investment Research
The TJX Companies is committed toward boosting growth through effective marketing initiatives and loyalty programs. Its aggressive marketing and advertising campaigns through multiple mediums have been contributing to growth. In its last earnings call, management highlighted that it is on track to roll out effective marketing campaigns across television and digital media for the fall and holiday season. Also, the company’s treasure hunt shopping experience is gaining traction among shoppers. The TJX Companies’ gift-giving initiatives, unique among off-price retailers bode well. Also, the loyalty card program (which offers consumers a non-credit card choice and soft benefits such as early shopping hours) has been helpful in improving customer engagement.
The TJX Companies is benefiting from its solid store and e-commerce growth efforts. It regularly opens stores and is expanding rapidly across the United States, Europe, Canada and Australia. The TJX Companies opened 26 new stores, taking the total count to 4,665 during fiscal second-quarter. The company expanded its square footage by 0.5% from the previous quarter’s levels.
With an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to boost online sales and strengthen its e-commerce business. In the last earnings call, management highlighted that it is seeing impressive sales in the U.S. and U.K. online businesses. The company’s off-price model along with its strategic store locations, impressive brands and fashion products are likely to drive its performance, in stores and online.
We believe that such upsides are likely to help this Zacks Rank #2 (Buy) company stay in investors’ good books. Shares of The TJX Companies have increased 6.9% in the past three months compared with the industry’s growth of 6%.
Other Solid Retail Bets
Costco Wholesale Corporation (COST - Free Report) , which currently carries a Zacks Rank #2, has a long-term earnings growth rate of 9.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Macy’s, Inc. (M - Free Report) , which currently sports a Zacks Rank #1, has a long-term earnings growth rate of 12%.
Kohl’s Corporation (KSS - Free Report) , which currently sports a Zacks Rank #1, has a long-term earnings growth rate of 8%.