Flashy Headlines Mislead Investors in TJX

TJX(TJX Quote - Cramer on TJX - Stock Picks) had a quarter that was something to be proud of, no doubt about that, but the business media is still obtuse and excitable enough to make too big a deal of it, misleading investors.

Case in point was this Associated Press headline about the operator of TJ Maxx and Marshalls stores: "TJX's 2Q profits triple as shoppers seek bargains."

In case you missed it, the AP even showcased the amazing feat again in the sub-headline: "TJX says 2Q profits triple; raises outlook as shoppers seek cheaper alternatives."

You got that? The discount retailer's profits tripled in this environment! That must have been some line of bargain-seekers, huh?

The thought of it alone almost made The Business Press Maven have to clip his wig to his head -- especially because TJX was the first major retailer to report. This must bode remarkably well, no? Forget tough economic times! Forget the stretched consumer! Let's break out the bubbly!

Then, of course, I read the article. And the devil, as always was in the details -- not the headline.

TJX's profit growth was nothing to sneeze at. But it was a triple in name only, and calling it that to attract readers to a flashy headline is the sort of stuff that causes investors to make bad decisions and gives the business media their bad name.

While there was reference to a charge in last year's second quarter in the lead, its magnitude was left to the imagination. It's not until more than halfway down that we get the fill-out. Boy was it a big charge -- factor in that and a little one in this year's quarter and guess what? TJX earned 47 cents this quarter, up from 38 cents last year.

« Previous Page

1 2 3

Next Page »