der GeschÀftsjahres TJX: Upward Trend Ahead of Fiscal Year Resumption

Last Updated: 22. November 2023By

Tomorrow, Americans will celebrate “Thanksgiving”, the second most important family festival in the USA after Christmas. The next day, with “Black Friday”, the traditional start of the Christmas shopping season begins. The pre-New Year shopping season is by far the most lucrative time of the year for retail.

Despite the difficult economic environment, Deloitte expects a new sales record. According to a survey by the auditing and consulting firm, consumers are expected to spend an average of 567 dollars in the days from Friday to the following “Cyber Monday”. That is 13% more than a year ago.

Many retail companies also report their figures during these days. Among other things, the discount retailer TJX presented its results.

TJX offers branded goods at bargain prices If you don’t know TJX, let me introduce the company to you first. TJX is headquartered in Framingham, Massachusetts, USA, and is a successful discount retailer. In its stores TJX sells branded products from Karl Lagerfeld, Gucci or Michael Kors at bargain prices. The goods usually come from remnants, overproduction or sample collections of well-known brands.

With this extraordinary business model, the US company has been on a growth trajectory for many years and is steadily pushing its global expansion. TJX currently operates more than 4,900 stores worldwide. In Germany, the company is represented by the TK Maxx brand.

Another record year in sight After the corona pandemic, which also slowed down TJX, the US company already achieved new records in sales and profit in the following financial year 2021/2022 (until January). And in the current financial year 2022/2023, TJX is on track for new records.

In the third quarter, the company exceeded the expectations of analysts. Sales rose 9% to $13.27 billion. Net profit rose 12% to $1.19 billion or $1.03 per share. Analysts had only expected revenues of $13.05 billion and earnings of 99 cents per share.

For the full year, the management increased its forecast and is now aiming for a profit increase of up to 17% to $3.61 to $3.64 per share. TJX had only promised earnings of $3.56 to $3.62 per share. Comparable sales in stores open for more than a year are expected to grow by 4 to 5%.

Source: www.aktienscreener.com

Despite setback, the uptrend is unbroken However, analysts had expected even more for the current fourth quarter than the company now suggests. That was the reason why the share price fell slightly after the announcement of the figures. The decline is not worrying. Currently, the price is only 5% below its all-time high of almost $94 in September.

The uptrend is unbroken. It is likely that the small setback will prove to be a favorable entry opportunity into the long-term trend. The next stage goal is the $100 mark. If the round threshold is exceeded, there is medium-term potential for further upside.