Sunday 29 May 2016

TJX report Q1 2016

TJX, Q1, 2016, front page

The American off-price giant TJX arrived with their quarter report probably a long time ago but to be honest I hardly noticed it. The share price of these american giants are anyway moving as quickly as a sea turtle on the beach so there would not have been much to tell anyway.

To read the report in full please go herefor my previous summary please visit TJX annual report 2015 and to find out more about TJX then please click on analysis of TJX 2016.

As can be seen in the financial statement below TJX is doing very well. Sales are up by almost 10%, unfortunately so are the costs... but as long as sales are a higher real value than the real value of the costs then a 10% increase of sales will always have a positive final effect even if the costs are up in an equal %-age. This then means that the earnings are for the quarter up by +7% and this I do indeed like. They even bought back shares in the size of 4% which I am emotionally mixed about. Please do not understand me wrong... I want companies to buy back shares but I want them to do that when they are trading a very low P/E and not when they are trading at a P/E above 22. I should here also admit that I am not very rational because I probably bought TJX myself at this P/E level but that is another matter.

Conclusion: TJX have had an excellent start to the year and I am very pleased. The share price have not moved much since I bought them but that I do not care about. What I care about is the amount of people in the stores and seeing them filling up their bags with cloths. At least in Berlin I still see this and the figures indicates it being similar elsewhere. I will remain a pleased shareholder.


valuetradeblog said...

Congratulations on TJX, I think it's a good and interesting company. Do you have a research write up about them? (that compares them with Ross maybe)

Anonymous said...

You can find it by following the labels. This was my second Peter Lynch investment which is simply based on the amount of people going shopping in the store.

Ross I have never heard of or seen. I saw that they are pretty big in America but thats it. It is hard to go abroad. TJX have already been succesful in Europe which has a very high value. Ross would need to spend a lot of money to accomplish this without a guarantee form success. Nah, TJX is good enough for me.