By Dean Seal
Shares of off-price retailers advanced in early trading after T.J. Maxx parent company TJX reported a strong fiscal fourth quarter for customer transactions.
TJX's stock was up 1.4% at $124.38 in the morning session.
The company, which also operates Marshalls and Homegoods, said comparable sales were up 5% for the quarter ended Feb. 1., ahead of analyst estimates by nearly two percentage points. The increase was driven by a jump in transactions across all of its divisions, TJX said.
The gain came despite weakening consumer sentiment and a broad pullback in retail spending in January. Price-conscious shoppers are clearly looking for deals on their favorite brands and seeking them out at off-price retailers, Emarketer analyst Rachel Wolff said in a research note.
Among the other discounters benefiting from this consumer shift are Burlington Stores and Ross Stores, the owner of Ross Dress for Less.
Shares of Burlington were up 3.6% at $24.85 while shares of Ross were up 1.3% at $138.21 in early trading. Both companies issue their quarterly reports next week.
Wolff noted that TJX issued conservative guidance for the year ahead, showing that it isn't completely immune to the uncertain spending environment, though it is likely taking a cautious approach to the unpredictable economic landscape.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 26, 2025 10:42 ET (15:42 GMT)
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