The TJX Companies, Inc. (NYSE: TJX)
The TJX Companies, Inc. (TJX), an apparel and home fashions retailer company yesterday announced sales and earnings results for third quarter 2015. Net sales for third quarter fiscal 2016 was $7.8 billion a 5% increase over third quarter 2015. Net Income was $587 million and diluted earnings per shares was $0.86 up from last year’s $0.85.
The TJX Companies, Inc. CEO Comments
Carol Meyrowitz, Chairman and Chief Executive Officer of The TJX Companies, Inc., stated,
“I am extremely pleased with our third quarter performance as our momentum continued. Our 5% consolidated comparable store sales growth, over a 2% increase last year, continued our excellent trend from the first two quarters and significantly exceeded our plans. Our $.86 in earnings per share was also well above our expectations. We are delighted that strong customer traffic drove our entire consolidated comp and was the primary driver of our comp increases at every division. Our excellent traffic gains and strong performance across our apparel, accessories and home categories, demonstrate that our brands globally are offering the right values and merchandise mix. Again this quarter, we saw strong sales at every division. I am particularly pleased with our ability to simultaneously deliver exceptional value to consumers while maintaining strong merchandise margins, which speaks to the flexibility of our off-price business model. Our goal is to keep serving consumers and growing our market share around the world. To that end, we continue to balance growth with investments in our future to establish a strong foundation in the U.S. and internationally. Further, we were happy to add Trade Secret, an Australian off-price retailer, to our family of companies in October. As to the fourth quarter, we are pleased to see that traffic continues to be up and we could not be more excited about the holiday selling season. I am convinced that our gift-giving selections are better than ever this year and that our holiday marketing campaigns will resonate with consumers and attract more shoppers to our stores. With our clear vision for global growth, a differentiated apparel and home fashions business, and world-class organization, I am very confident we will grow TJX to a $40 billion-plus company!” Business Wire
TJX Technical Analysis
TJX gapped up in price yesterday to $69.67, up from the prior day’s close of $65.65, which is a 6% increase on the favorable news. Taking a look at the daily chart, we can see the last time TJX traded above this price level was on November 10th, when it closed at $71.82. Taking a closer look at the daily chart we can see before this gap up TJX was on a steep decline starting on November 5th when it traded at $74.32. TJX dropped all the way to $64.08 on November 13th, a 14% drop in price. With this gap up, TJX is rebounding off of those lows. TJX has a high float of 670.1 million shares and was trading 1.25 times the normal daily trading volume. TJX did reach pre market highs of $69.89, but gave back $0.22 at the open. For trading purposes, my entry point would have been $69.75 looking for a run through $70. My stop loss would have been $69.60, fearing anything below that and the stock would start to fill in the gap up.
The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, accent furniture, lamps, rugs, wall décor, decorative accessories, and giftware; and other merchandise. It operates stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post names, as well as operates e-commerce sites tjmaxx.com, tkmaxx.com, and sierratradingpost.com. The company operates approximately 3,300 stores. The TJX Companies, Inc. was founded in 1956 and is headquartered in Framingham, Massachusetts. Yahoo Finance