TJX

TJX Companies, Inc.

Consumer


Presented:09/15/2020
Price:$56.86
Cap:$68.18B
Current Price:$116.76
Cap:$131.69B

Presented

Date09/15/2020
Price$56.86
Market Cap$68.18B
Ent Value$71.36B
P/E Ratio100.73x
Book Value$3.89
Div Yield0.81%
Shares O/S1,199.06M
Ave Daily Vol7,418,992
Short Int1.06%

Current

Price$116.76
Market Cap$131.69B
The TJX Cos., Inc. engages in the retail of off-price apparel and home fashion products. It operates through the following segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The Marmaxx segment sells family apparel including apparel, home fashions, and other merchandise. The HomeGoods segment offers assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware as well as expanded pet, kids, and gourmet food departments. The TJX Canada segment operates the Winners, Marshalls, and HomeSense chains in Canada. The TJX International segment comprises operations of T.K. Maxx and Homesense chains in Europe and the T.K. Maxx chain in Australia. The company was founded by Bernard Cammarata in 1976 and is headquartered in Framingham, MA.

Publicly traded companies mentioned herein: B&M European Value Retail SA (BME LN), Dollar General Corp (DG), Dollar Tree Inc (DLTR), Five Below Inc (FIVE), J.C. Penney Company Inc (JCPNQ), Kohl’s Corp (KSS), Macy’s Inc (M), Stage Stores Inc (SSINQ), The TJX Cos (TJX)

Highlights

The presenter is long shares of The TJX Cos (TJX), predicated on the belief that concerns surrounding the company are overblown and that demand for off-price remains high, with people willing to return to stores now that they’ve reopened. After lockdowns occurred, investors bought TJX based on an inventory glut thesis, where off-price retailers would be able to buy products at even cheaper prices, and that the company would be a winner once things normalized. TJX reacted to COVID-19 by shutting down their stores aggressively and as a result stopped buying new inventory. When TJX reopened stores, they experienced high demand and inventory quickly sold out, with reports of barren shelves across the industry. TJX’s foot traffic and credit card data is improving, which he sees as an indication of demand returning as inventory normalizes.

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