Consumers may still be resilient, but what they're looking for is deals…
How We Knew TJ Maxx Would Crush Earnings
Auto loan and credit card debt are clocking in at record highs, but to keep spending without the guilt, the U.S. consumer is eager to find a deal.
That's good news for TJX Companies Inc. (TJX), the owner of off-price retail chains T.J. Maxx, HomeGoods, and Marshalls, who recorded an analyst-topping quarter on Wednesday.
Here's The Wall Street Journal:
Total sales came in at $14.52 billion, topping analyst expectations for $14.08 billion and its own guidance for up to $14.1 billion, according to FactSet.
The company posted a profit of more than $1 billion, though earnings were one penny shy of analyst expectations at 89 cents a share.
The Framingham, Mass.-based retailer, which also owns the off-price chains Marshalls and HomeGoods, said comparable sales at its U.S. clothing-oriented stores were up 7% during the quarter ended Jan. 28.
TJX Companies expects positive momentum for same-store sales, projecting growth between 2% and 3% during the fiscal year, which ends next February.
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You can still grab shares for under $3. But not for long.
For fans of generating income and shareholder-friendly moves, there's more good news.
Not only will the company boost its upcoming quarterly dividend by 13%, to roughly 33 cents a share…
TJX also plans to repurchase between $2 billion and $2.5 billion of its own stock during the fiscal year. It's a classic move to juice the price by reducing the supply of shares available in the public market.
Here's more from The Wall Street Journal on what's ahead:
"The tightening in consumer spending is expected to be a boon for TJX and other off-price retailers as customers, wary of a potential recession on the horizon, become more sensitive to higher prices and hunt for more bargains."
That's the type of "good to know" information for future investing.
But the thing is…
What if you had access to invaluable information before it became public to set yourself up for a profitable trade?
Derby City Insights uses LikeFolio's analytic know-how to bring you the best moneymaking opportunities you'll find. And it does this by tapping into the single-best slice of consumer sentiment: What real people are saying about products, services, brands, and trends that the big Wall Street investors haven't discovered yet.
Know Main Street's Moves Before They're Wall Street News
Before TJX Companies reported earnings, Earnings Season Pass subscribers were tipped off to a bullish opportunity on the company in their weekly Earnings Scorecard.
The LikeFolio data spotted the social media buzz:
Mentions of the company outperformed rivals, climbing 18% year-over-year:
And not only were more people talking about TJX, the stores were near the top of the pack when it comes to Consumer Happiness levels, surpassing both Ross Stores Inc. (ROSS) and Kohl's Corp. (KSS)… only slightly behind Burlington Stores Inc. (BURL).
Purchase Intent mentions — the folks talking about spending their money or intending to spend their money at TJX Companies — surged 87% year-over year.
Again, it's good to know TJX Companies sees the value-shopping trend continuing after its quarterly report… but the members of Earnings Season Pass didn't have to wait for that confirmation…
TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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