TJX (TJX) lets consumers find good deals on name-brand apparel, furniture, home goods and more at off prices, having done so successfully for quite a while. The company's third-quarter results will show whether investors can continue getting quality at an affordable price or if shares will be on the discount rack.
Goldman Sachs analyst Lindsay Drucker Mann noted that the buying environment for TJX, which buys excess inventory from retailers, remains favorable, despite a slowdown in the second quarter. "TJX reported 2Q EPS ahead of consensus but comps of +4% decelerated from +7% in 1Q," Drucker Mann wrote in a note to clients. "Still, momentum remains healthy on an absolute basis, and we expect a favorable buying environment and structural off-price advantages to drive continued momentum, even against strong comparisons."
Analysts surveyed by Yahoo! Finance expect TJX to earn 87 cents a share on $8.22 billion in sales when it reports third-quarter earnings on November 15.
TJX owns its name sake TJ Maxx, Marshall's and Home Goods, all which are constantly changing their inventory and providing shoppers with new buys daily, which makes its business somewhat Amazon (AMZN) proof.
Bank of America Merrill Lynch analyst Lorraine Hutchinson noted that spending from the demographic making between $20,000 and $50,000 a year, which should help TJX. That segment grew its spending 5.3% over the past twelve months and those making less than $20,000 grew spending at a 3.6% clip.
Conversely, those making $125,000 or more saw their spending fall 4.6% over the past twelve months.