iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,474 Blog Posts

$TJX Joins the List of Soon to Be Dead Retailers, Issues Warning

Okay, that might’ve been a slight exaggeration. TJ Maxx is one of the winners in this dystopian retail landscape of ours — retailer of excess inventory at cut throat prices. If you’re not cut throat pricing, or catering to the hedonistically rich, you’re not doing much of anything these days. You’re Macy’s.

Alas, even the pirates of retail are starting to feel the burn of Amazon, a monopolistic nightmare that seeks to enslave all of you through an enjoyable experience and great prices.

Reports Q1 (Apr) earnings of $0.82 per share, $0.03 better than the Capital IQ Consensus of $0.79; revenues rose 3.2% year/year to $7.78 bln vs the $7.88 bln Capital IQ Consensus. Diluted EPS $0.04 above high-end of Company’s plan primarily due to a benefit from an accounting change in share-based compensation as well as a benefit from foreign currency, which were both higher than expected.

Comps +1% vs. +0-1% guidance.

Co issues downside guidance for Q2, sees EPS of $0.81-0.83 vs. $0.92 Capital IQ Consensus Estimate; comps +1-2%.

Co issues guidance for FY18, raises EPS to $3.82-3.89 from $3.80-3.89 vs. $3.90 Capital IQ Consensus Estimate; reaffirms comp +1-2%.

“Comp store sales growth was once again driven by customer traffic. We achieved these results despite the unfavorable weather in parts of the U.S. and Canada compared to last year. We were pleased to see sales trends pick up as the quarter progressed. With our disciplined inventory management, our merchandise margin was up, which speaks to the resiliency and flexibility of our off-price retail model. Further, we are confident that we are gaining market share at each of our four major divisions. The second quarter is off to a solid start and we have excellent liquidity in our inventories.”

I should create an algo to short any company that blames weather for failed execution. Shares of TJX are off by 5%.

Pro-tip: buy this candle. It’s the only reason why I visit that God forsaken store.

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8 comments

  1. derp

    Wtf. You mean you don’t buy the discounted Polo dress shirts or the queer style Hanes tighty whiteys?

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  2. Dr. Fly

    Wow, did I just say that out loud?

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  3. matt_bear

    i get most of my work clothes at TJX. Kenneth Cole and Hugo Boss are routinely available at one of the stores in my area.

    To be honest, the gems are starting to become rare compared to 10 years ago. That store was literally the best kept secret in town back then.

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  4. mushroomz

    Divitards get over here! $KSS might be the best buy in the bombed out retail space. It is yielding 6% with strong cash flow and a payout ratio of only 61% meaning management can easily maintain the dividend.

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