Australia  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

2 Crucial Factors to Watch When TJX and Burlington Report Earnings

Video Credit: The Street - Duration: 05:54s - Published < > Embed
2 Crucial Factors to Watch When TJX and Burlington Report Earnings

2 Crucial Factors to Watch When TJX and Burlington Report Earnings

The big apparel sellers are set to report earnings, and the keys investors need to focus in on are clear, according to one analyst.

TJX reports earnings on May 21 and Burlington on May 30.

Second Quarter Guidance Of course, what's to come is always more important than the past in markets, but this is particularly true for the apparel retailers right now.

"It's probably going to be about the second quarter guidance," said John Morris, senior brand apparel analyst at D.A.

Davidson & Co.

"The Street and investors have a pretty good sense that the first quarter has been very tough for most brand apparel retailers, because of a number of factors," Morris said.

He listed tax reform and and consumer sentiment as two factors that were far greater tailwinds in 2018 then they are this year.

"Secondly, you've had a very challenging weather season here in the spring," Morris said, adding, "against what was the warmest May on record... last year." Inventory Management "Who's going to be in a best position place...to rightsize the business, not have too much carry over inventory to get ready for the fall," Morris said is another key.

Retailers a Plain Old Buy?

"I think everybody knows that the deck has been stacked against these brand apparel companies, and that's why the valuations have been pretty attractive," Morris said.

Many of those stocks have forward price to earnings ratios of below 20.

So are these stocks ripe for buying?

"I think absolutely, because you're talking about a secular trend that is really going to be in place for the next several years, at least," Morris said.

He said the off-priced retailers are positioned to capture more market share as brands move away from full-priced retailers struggle in the face of online competition.

Related.

Macy's Guidance Impacted by China Tariffs.

0
shares
ShareTweetSavePostSend
 

You Might Like

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.