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Allie Lane Pitches TJX Companies on April 16th, 2018

posted on April 28, 2018

On Monday, April 16th , Allie Lane pitched The TJX Companies (NYSE:TJX) to add to the Consumer Discretionary Sector holdings.  TJX is an off-price apparel and home fashion retailer with locations worldwide.  The company operates more than 4,000 off-price retail stores that offer a wide range of brand name and designer merchandise in the United States, Canada, Europe and Australia.  Its main revenue producing segment is Marmaxx, which includes T.J. Maxx and Marshalls.  In addition TJX consists of three other segments – HomeGoods, TJX Canada, and TJX International.  Its stores offer a rapidly changing assortment of high-quality merchandise at prices generally 20% to 60% below typical retail prices.  Its business model targets deal-seeking customers looking for an exciting treasure-hunt shopping experience.  Allie concluded her investment thesis stating that TJX is a global company with strong, dependable revenue and growth potential due to three main reasons.  First, TJX is well positioned in the retail industry, as well as the consumer discretionary sector, due to the differentiation of its business model.  Second, the company continues to invest in growth opportunities, which it has excelled at throughout its 40-year history.  Last, TJX is resilient through various economic conditions and has consistently returned value to its shareholders.  Allie proposed to buy 50 shares of TJX, sell 15 shares of DIS and execute cash for the remaining necessary to fund the transaction.  The motion passed unanimously.

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