Today, Let’s talk about TJX Companies, which demonstrated one of the best results among the companies that published financial statements last week.
TJX published its latest report on February 28. 70% of the revenue structure is made up of manufacturing costs and 30% of gross revenue. Over the past quarter, the company made a profit of $1.4B. And its market capitalization is now $112B.
TJX Companies is a discount retailer of clothing and accessories from Fortune 100. The company has almost 5K stores, and about 75% of its revenue comes from the United States.
TJX Companies operates in the specialty retail industry. It was founded in 1987. In 1989, it went public on the NYSE and in 1996 was included in the S&P 500 index. For the past 8 years, the company has been headed by Ernie Herrman and a team of experienced managers.
The main competitors of TJX Companies are Home Depot, Ross Stores and Best Buy. As you can see from the table above, some of them are ahead of TJX Companies in terms of capitalization, but the company has a number of competitive advantages.
The strengths of TJX Companies are based on a wide range of products. The company has 21K partners and sells their goods at a discount of 20-60%. Due to this, over the past decade, TJX has opened an average of 173 new stores annually, which is an increase of 4.4% per year.
Over the past three months, TJX Companies stock has risen by +11%. At the same time, the Consumer Discretionary sector, to which the company belongs, also grew by +11%, and the S&P 500 index by +12%. As you can see, TJX Companies shares show the same dynamics as the sector, but do not outperform the index.
