Unlike Target Corporation
Quarterly Highlights
For the quarter ended on July 29th, the discounting apparel retailer posted a 7.7% YoY rise in sales that amounted to $12.76 billion, topping Refinitiv's consensus estimate of $12.45 billion. Net income also rose from last year's comparable quarter ($810 million or 69 cents per share) as it amounted to $989 million, or 85 cents per share. Traffic increased across all of its segments.
While Home Depot
Freight costs eased significantly and gross profit margin rose as a result to 30.2%.
A Raised Outlook For Fiscal 2024
Upon the strong quarter, the discounting retailer of premium brands rose its full-year guidance for comparable store sales, that are expected to rise between 10.7% and 10.8%, and EPS that are now expected in the range between $3.66 and $3.72.
Inflation or no inflation, consumers are still willing to splurge - TJX is on a Roll
TJX's latest report showed that despite the macroeconomic crunch, consumers are still willing to splurge on discounted premium accessories, clothes and home goods. What the reports of Home Depot, Target and TJX have in common is that they all observed signs of cooling inflation. While full-priced high-end premium retailers struggled with bloated inventories, TJX got to benefit as they offloaded their stock, due to which TJX got to offer a wider assortment than usual. This way, TJX became even more important to high-end brands as it helped them offload their burdening inventories. With its undergoing third quarter off to a very good start, TJX is well positioned to grow its sales and increase customer traffic. It has certainly rejuvenated after a few lackluster quarters with plenty of opportunities coming with the holiday season.
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