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Here's Why TJX Companies (TJX) is Staying Ahead of the Curve
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The TJX Companies, Inc. (TJX - Free Report) has exhibited a decent run on the bourses in the past year, owing to its operational initiatives — solid store and e-commerce growth efforts, effective marketing initiatives, and loyalty programs.
In the past year, this leading off-price retailer of apparel and home fashions in the U.S. and worldwide has outpaced the Zacks Retail-Discount Store industry. In the said period, shares of this Zacks Rank #3 (Hold) company have gained 41.7% compared with the industry’s growth of 6.7%. The company also outpaced the retail -wholesale sector’s rise of 10.5% and the S&P 500’s rally of 15.2% in the same timeframe.
An uptrend in the Zacks Consensus Estimate echoes the same sentiment. The consensus estimate for fiscal 2024 and 2025 has increased 1.7% and 0.8% to $3.57 and $3.93, respectively, over the past 60 days. Moreover, the Zacks Consensus Estimate for the current and next financial years implies year-over-year increases of 14.8% and 10.2%, respectively.
The Zacks Consensus Estimate for sales for fiscal 2024 and 2025 is pegged at $53.11 billion and $55.96 billion, indicating year-over-year increases of 6.4% and 5.4%, respectively.
Image Source: Zacks Investment Research
Let’s Delve Deeper
TJX Companies has been experiencing success through its expansion efforts both in stores and in the e-commerce space. The company has undertaken several initiatives to boost online sales and strengthen its e-commerce business. In the first quarter of fiscal 2024, the company increased its store count by 30 to 4,865 stores and increased its square footage by 0.5% from the prior quarter. The company has added several categories and brands to all its online banners.
The success of the company can be attributed to its effective marketing strategies. Aggressive advertising campaigns have created widespread awareness and attracted a large customer base. The implementation of loyalty programs has fostered customer loyalty and encouraged repeat purchases. Moreover, the distinctive treasure hunt shopping experience offered by TJX Companies has generated excitement and intrigue among customers, leading to increased footfall and sales.
Additionally, the company's unique gift-giving initiatives have provided customers with memorable experiences, strengthening their emotional connection with the brand. Through these initiatives, TJX has not only driven growth but also enhanced customer engagement, establishing a strong foundation for long-term success.
The company’s performance in the first quarter of fiscal 2024 surpassed the Zacks Consensus Estimate for the bottom line, driven by an off-price business model, a strong brand portfolio and an extensive geographical presence. In the first quarter of fiscal 2024, the company experienced growth in comparable store sales by improved customer traffic and the strength of Marmaxx, which is TJX Companies' largest division. At Marmaxx, first-quarter comparable store sales rose 5% compared with a 3% increase last year.
For fiscal 2024, management envisions comparable store sales growth of 2-3%. It expects earnings of $3.49-$3.58 per share, which suggests an increase from earnings of $3.11 per share reported in fiscal 2023.
GIII Apparel, which is a manufacturer, designer and distributor of apparel and accessories, sports a Zacks Rank #1 (Strong Buy) at present. The expected EPS growth rate for three to five years is 15%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year sales and earnings suggests growth of 1.9% and 0.4% from the year-ago period’s actuals. GIII has a trailing four-quarter earnings surprise of 47.4%, on average.
lululemon, which is a yoga-inspired athletic apparel company, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 20%.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and earnings suggests growth of 17.1% and 18.4%, respectively, from the year-ago period’s reported figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Guess, which distributes and licenses casual apparel and accessories, presently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 21%, on average.
The Zacks Consensus Estimate for Guess’ current financial-year sales and earnings suggests growth of 2.8% and 2.6%, respectively, from the year-ago period’s actuals.
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Here's Why TJX Companies (TJX) is Staying Ahead of the Curve
The TJX Companies, Inc. (TJX - Free Report) has exhibited a decent run on the bourses in the past year, owing to its operational initiatives — solid store and e-commerce growth efforts, effective marketing initiatives, and loyalty programs.
In the past year, this leading off-price retailer of apparel and home fashions in the U.S. and worldwide has outpaced the Zacks Retail-Discount Store industry. In the said period, shares of this Zacks Rank #3 (Hold) company have gained 41.7% compared with the industry’s growth of 6.7%. The company also outpaced the retail -wholesale sector’s rise of 10.5% and the S&P 500’s rally of 15.2% in the same timeframe.
An uptrend in the Zacks Consensus Estimate echoes the same sentiment. The consensus estimate for fiscal 2024 and 2025 has increased 1.7% and 0.8% to $3.57 and $3.93, respectively, over the past 60 days. Moreover, the Zacks Consensus Estimate for the current and next financial years implies year-over-year increases of 14.8% and 10.2%, respectively.
The Zacks Consensus Estimate for sales for fiscal 2024 and 2025 is pegged at $53.11 billion and $55.96 billion, indicating year-over-year increases of 6.4% and 5.4%, respectively.
Image Source: Zacks Investment Research
Let’s Delve Deeper
TJX Companies has been experiencing success through its expansion efforts both in stores and in the e-commerce space. The company has undertaken several initiatives to boost online sales and strengthen its e-commerce business. In the first quarter of fiscal 2024, the company increased its store count by 30 to 4,865 stores and increased its square footage by 0.5% from the prior quarter. The company has added several categories and brands to all its online banners.
The success of the company can be attributed to its effective marketing strategies. Aggressive advertising campaigns have created widespread awareness and attracted a large customer base. The implementation of loyalty programs has fostered customer loyalty and encouraged repeat purchases. Moreover, the distinctive treasure hunt shopping experience offered by TJX Companies has generated excitement and intrigue among customers, leading to increased footfall and sales.
Additionally, the company's unique gift-giving initiatives have provided customers with memorable experiences, strengthening their emotional connection with the brand. Through these initiatives, TJX has not only driven growth but also enhanced customer engagement, establishing a strong foundation for long-term success.
The company’s performance in the first quarter of fiscal 2024 surpassed the Zacks Consensus Estimate for the bottom line, driven by an off-price business model, a strong brand portfolio and an extensive geographical presence. In the first quarter of fiscal 2024, the company experienced growth in comparable store sales by improved customer traffic and the strength of Marmaxx, which is TJX Companies' largest division. At Marmaxx, first-quarter comparable store sales rose 5% compared with a 3% increase last year.
For fiscal 2024, management envisions comparable store sales growth of 2-3%. It expects earnings of $3.49-$3.58 per share, which suggests an increase from earnings of $3.11 per share reported in fiscal 2023.
3 Red-Hot Stocks to Consider
Here we have highlighted three better-ranked stocks, namely GIII Apparel Group (GIII - Free Report) , lululemon athletica (LULU - Free Report) and Guess (GES - Free Report) .
GIII Apparel, which is a manufacturer, designer and distributor of apparel and accessories, sports a Zacks Rank #1 (Strong Buy) at present. The expected EPS growth rate for three to five years is 15%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year sales and earnings suggests growth of 1.9% and 0.4% from the year-ago period’s actuals. GIII has a trailing four-quarter earnings surprise of 47.4%, on average.
lululemon, which is a yoga-inspired athletic apparel company, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 20%.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and earnings suggests growth of 17.1% and 18.4%, respectively, from the year-ago period’s reported figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Guess, which distributes and licenses casual apparel and accessories, presently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 21%, on average.
The Zacks Consensus Estimate for Guess’ current financial-year sales and earnings suggests growth of 2.8% and 2.6%, respectively, from the year-ago period’s actuals.