TJX is a fast growing large-cap discount apparel retailer.
Same store sales and continued store openings bode well for the growth story at TJX.
They are not cheap today, but investors likely wouldn’t fare badly buying at these prices.
TJX Companies (NYSE: TJX) is a large-cap apparel retailer started in 1919 as a ladies hosiery business. Starting in the 1970’s, the company shifted to what it is known as today, shifting to an off-price retailer. Today, the company operates 3,600 stores in 9 countries, and is the leader in the off-price marketplace operating under the T.J. Maxx, Marshall’s, Winners, Trade Secret, Sierra Trading Post, HomeSense, T.K. Maxx, and HomeGoods brands. Their main competitor is Ross Stores (NYSE: ROST), which I plan on analyzing in a later article.
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TJX operates by sourcing clothing from a variety of vendors, the top 25 of which only represent <20%. They use over 1,000 agents worldwide to build relationships with thousands of companies in order to find the best deals on products to stock their shelves. They see it as an advantage that their store is set up in such a way that they can adapt to changing trends quickly.
TJX’s growth potential is pretty outstanding, if their projections are to be believed. They believe that they could expand their store count from 3,600 to 5,600 in just their current markets without saturating. Their history of succeeding in international markets puts them in an elite group of retailers that are able to scale into foreign countries, so they have a solid growth runway ahead of them. In 2015 alone, they expanded into Austria, Australia, and the Netherlands.
Fuente: Seeking Alpha
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