0
Table of Contents
1.0 – Executive Summary……………………………………………………………….………………… P. 2
2.0 – TJX Overview……………………………………………………………......……….………………… P. 2
2.1
Business Segmentation………………………......……….………………..……………… P. 2
2.2
Corporate Social Responsibility………………………......………….………………… P. 3
2.3
TJX Stock Performance………………………......……….………………………...……… P. 3
2.4
Consolidated Performance………………………......……….………………...………… P. 4
2.5
Advantages of TJX………………………......……….…………………………………..…… P. 5
2.6
Recent News………………………......……….…………………………………..…………… P. 6
a. Domestic and International Store Expansion………………………………...…… P. 6
b. Strong Q3 FY11 Sales and EPS Growth…………………………........……………… P. 6
3.0 – Industry Analysis………………………......……….…………………………………...…………… P. 6
4.0 - Ratio Analysis………………………......……….………………………………………...…………… P. 10
4.1 Cash Flow………………………….………………………………………………………..………… P. 10
4.2 Profitability………………………........................................................……….………………… P. 14
4.3 Liquidity………………………………………………………………….....……….………………… P. 17
4.4 Efficiency……………………………………………………………….......……….………………… P. 18
4.5 Long-term Solvency…………………………………………………....……….………………… P. 19
4.6 DuPont Analysis………………………................................................……….………………… P. 21
5.0 – Earning Forecast………………………......……….…………………………………….…………… P. 23
6.0 – Relative Valuation………………………......…………………………………..….………………… P. 25
7.0 – Absolute Valuation………………………......…………………………………….………………… P. 27
8.0 Conclusion………………………......……….………………………………………………..…………… P. 29
9.0 Bibliography………………………......……….………………………………………………..………… P. 30
1
1. Executive Summary
After analyzing TJX and its position within the overall Retail industry, we find sufficient support to
believe that this company is a worthwhile investment and thus recommend it as an addition to the
St. John’s University Graduate Student Managed Investment Fund portfolio.
This decision is based upon: the strength of the company in comparison to its peers and the Retail
industry as a whole through ratio analysis, relative valuation’s indication of value, absolute
valuation’s indication of value, macro analysis of the economy, current happenings within the
company, and the analysis of future trends. This report will serve to support our recommendation
to purchase shares of TJX as it is currently a viable option and will be a fruitful investment in the
future.
2. TJX Overview
The TJX Companies, Inc. (TJX) was founded in 1976 in Massachusetts as an off-price retailer of
apparel and home fashions. The company has grown over the past three decades into a world
leader and engaged in a series of mergers and acquisitions in the process. As of fiscal 2010, TJX
operates eight off-price retail chains, including T.J. Maxx, Marshalls, HomeGoods, A.J. Wright,
Winners, HomeSense( in Canada), T.K. Maxx and Homesense( in the U.K. ) with over 2,700
locations in the US, Canada, and Europe.
TJX competes with other companies in the off-price retail sector as well as other retailers in the
distribution channel such as department stores, specialty retailers, and discount retailers. As the
largest off-price retailer in the US, TJX competes with other smaller competitors such as Ross Store
and Big Lots. TJX also competes with department stores such as Kohl’s, JC Penny and discount
retailers such as Walmart and Target.
2.1 Business Segmentation
Region
US (78%)
Canada
(11%)
Europe
(11%)
Concept
T.J. Maxx
Marshalls
HomeGoods
A.J. Wright
Winners
Merchandise offered
Apparel & home fashions
Apparel & home fashions
Home fashions and home furniture
Apparel & home fashions
Apparel & home fashions
HomeSense
T.K. Maxx
Home fashions and home furniture
Apparel & home fashions
HomeSense
Home fashions and home furniture
Figure 11
In fiscal 2010, TJX collect 78% of its revenue from its US locations, 11% from Canada, and 11%
from its operations in Europe. Among its merchandise offerings, clothing including footwear
2
accounts for 61% of total revenue, while home fashions accounts for 26% and jewelries and
accessories accounts for 13%.
2.2 Corporate Social Responsibility
“Since The TJX Companies’ Inception, delivering value to their customers has been their mission,
valuing their associates has been at their core, returning value to their shareholders has been a
constant priority and adding value to their communities has been a central pursuit. Above all else,
their corporate value has always been acting with integrity, which informs everything they do.” (
TJX 10K 2010)
So as TJX grows, they introduce their global Corporate Social Responsibility program. V.A.L.U.E !
Each letter in the word stands for one of the five tenets of social responsibility for TJX. Those
areas are: Vendor Social Compliance, Attention to Governance, Leveraging Differences, United
with Our Communities, and Environmental Initiatives. This Program is aimed at helping TJX
continue to make a positive, sustainable impact within these areas which they believe are key to
business and the interests of their shareholders, Associates, customers, vendors and communities.
2.3 TJX Stock Performance
Figure 22
The line graph above compares the cumulative performance of TJX’s common stock with the S&P
500 stock index as of December 10, 2010 and for the trailing two-year period. The graph assumes
that $100 was invested on December 2008, in each of TJX’s common stock, the S&P composite-500
Stock Index and that all dividends were reinvested. From the graph we can know that TJX’s stock
3
performance is better than the S&P composite-500 stock index and the Dow Jones Apparel
Retailers Index after 2008.
2.4 Consolidated Performance
Figure 3
As you can see from the graph, TJX’s net sales increase in moderate speed from 1982 to2010, and
it shows that TJX succeeds in all types of economic conditions. It is because TJX targets the middle
and upper-middle income customers who look for value and discounts, the company has
historically proved to do well in good economic condition and excel over full-price retailers during
recessionary periods. With price tags approximately 20% to 60% lower than department stores,
TJX’s merchandise appeals to customers not only because of the price but also because of the
treasure hunting experience. As the company regularly turns over its inventory and brings in high
quality, brand name items, customers usually come back to the stores regularly with the hope to
find the right item at a bargain. During recession, consumers become budget conscious, and offprice retailers naturally become the better destination compared to department stores.
4
2.5 Advantages of TJX
The most important strategies that TJX’s management implements, are opportunistic buying,
flexible flooring space, low cost operations, efficient inventories management, and scale.
TJX buys excess inventories from a network of 10,000 vendors every year. Due to the
unpredictable consumers demand in the apparel and home fashions industry, there are constant
opportunities for TJX to purchase merchandise at huge discount. By maintaining excellent vendor
relationships, TJX is able to catch the opportunities and work with the vendors who are in need of
selling excess inventories at the right time. This opportunistic buying allows TJX to obtain high
quality, brand name merchandise at wholesale prices and to offer deep discounts to consumers.
By focusing on discount price tag, TJX appeals to a large customer base in both good and bad
economy.
Efficient inventories management is another successful strategy. TJX’s merchants are on the
market virtually every week, buying for the current season. This allows TJX stores to update
merchandise on a weekly basis. This is the value that regular department store and specialty
stores could not provide. Customers also love the treasure hunting experience created by this
quick inventory replacing. They pay more visits to the stores, knowing there would be different
merchandise than those they saw during the last visit. This definitely helps TJX compete well not
only with full-price retailers but also other off-price retailers. Not all off-price retailers can offer
the same speed of inventory turnover
Low cost operations fit perfectly into TJX’s business model. Throughout its business operation, TJX
focuses on expenses control. The store has low advertising budget compared to traditional stores.
TJX also does not spend heavily on store fixtures and design. Instead, the stores have flexible
layout without walls and separation, allowing quick changes in quantities within each department
according to consumers’ demand. This allows TJX to compete even better in the discount segment;
low operations cost translate to low price tag. As the nation’s leader, TJX has already established
its brand exposure among consumers and low advertising budget strategy works perfectly well for
the company.
Last but not least, TJX benefit from its scale. As part of its strategy, TJX operates more than 2,700
stores in North America and Europe, allowing it to enhance its brand name without heavily
investing in advertising. More importantly, its scale helps amplify its low margin into profit and
helps TJX maintain low margin as a strong selling point to attract customers. This proved to be a
huge advantage over smaller off-price retailers.
5
2.6 Recent News
a. Domestic and International Store Expansion
“Leading the charge is the off-price retailer TJ Maxx, with new stores under construction on East
59th Street and on West 57th Street near the Time Warner Center. The company is also in
discussions for a third location, at 14 Wall Street, according to brokers who did not want to be
quoted by name because the lease was not yet completed. The company had a single store in
Manhattan, at Sixth Avenue and 18th Street, until last year when it opened an outpost at 100th
Street and Columbus Avenue on the Upper West Side. “ (
Besides, TJX Cos. will open six Marshalls Stores in Canada in 2011 with more possible in the long
term.4
“Now is the right time for our company to be expanding,” said Sherry Lang, a spokeswoman for TJ
Maxx, which has 890 stores nationwide. “We have done better than other retailers in the past oneand-one-half years, and we do think that value is here to stay.”
b. Strong Q3 FY11 Sales and EPS Growth
On Nov. 16, TJX announced that for the first nine months of fiscal 2011, net sales were $15.6
billion, a 9% increase over last year, and consolidated comparable store sales increased 4% over
last year. Adjusted diluted EPS for the first nine months of Fiscal 2011 were $2.45, a 28% increase
over the prior year. Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies,
Inc., stated, “I am very pleased with our third quarter overall performance, which exceeded the
high end of our expectations. Earnings per share increased 14% on top of 40% EPS growth last
year, demonstrating our ability to continue to grow earnings even against challenging
comparisons. Importantly, we were able to sustain last year’s significant increase in profit margin
by continuing to run our business with lean inventories, which has led to additional improvement
in merchandise margins.”5
3. Industry Analysis
Retailing industry
As most of our class agreed, the U.S. economy is gradually emerging from the deep recession. For
2011, Standard & Poor’s economists are projecting real gross domestic product (GDP) and
consumer spending to increase 2.5% and 2.3%, respectively.
According data issued by U.S. Census Bureau, Retail industry’s revenues increased gradually from
Jan, 2001 to Jan, 2009, but was down 4.583% in Jan, 2010 because of economic crisis.
6
TJX’s fiscal year is ending in January.
Figure 4
According to US department of commerce, the retail industry revenue has better performance
than prior year, although it doesn’t reach the previous level.
But as the S&P analysis shows that the recession hit department stores harder than discounters,
as consumers made mostly need-based purchases. Consumers can live without new fashion
7
apparel and accessories, fine jewelry, and home furnishings during an economic downturn. Since
fall 2009, however, same-store sales have rebounded at department stores, with a few chains
actually outperforming discounters.
Figure 56
Standard & Poor’s attributes the recovery in department store sales to two principal drivers: easy
comparisons and the American consumer’s propensity to shop. The lift in retail sales this past
spring may have also reflected consumers’ “frugal fatigue” and a boost in purchasing power from
tax refunds.
Although the broader economy remains weak, the business environment for department stores is
stable, in our view. On a year-over-year basis, S&P notes improved store traffic trends, reduced
discounting, and lower clearance levels, which attribute to department stores having inventories
in line with reduced demand, and to middle- and upper-income shoppers releasing pent-up
demand, needing to replace well-worn apparel and footwear, and responding favorably to
improved value propositions and fashion newness. In 2010, sales of footwear and apparel have
outpaced those of home merchandise.
While S&P anticipates a highly competitive shopping season, they see department stores and
outlets capturing share by offering consumers more choice, running longer promotions, and hiring
more seasonal workers to ensure that both in-store and online shoppers are well served. In
addition, they project growth in online sales, supported by the shopping convenience of this
channel and our expectation of free shipping offers.
8
Total Amount Consumers Planned to Spend for Winter Holiday-Related
2005
$734.69
2006
$750.70
2007
$ 755.13
2008
$694.19
2009
$681.83
2010
$688.87
Figure 67
According to the chart, we can see that winter holiday sales reach the peak in 2007, but declines
during 2007~2009. This may due to the economic crisis, as the economic crisis ended in 2009, we
expect the sales will recover to the previous level, therefore, there still have large potential growth
in the future.
9
4. Ratio Analysis
For the ratio analysis, TJX and its competitors’ fiscal years end in January. Therefore, all data are
January numbers, for example, 2010 is really fiscal year-ended January 2010.
4.1 growth rate comparisons
Sales Growth
Sales Growth
0.300
0.200
0.100
0.000
-0.100
-0.200
-0.300
-0.400
-0.500
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.119
0.112
0.119
0.070
0.091
0.071
0.019
0.068
ROST
0.182
0.110
0.081
0.166
0.127
0.073
0.086
0.108
TGT
0.101
0.097
-0.027
0.123
0.131
0.065
0.025
0.006
WMT
0.123
0.048
0.113
0.083
0.117
0.085
0.072
0.010
KSS
0.218
0.127
0.138
0.145
0.160
0.060
-0.005
0.048
JCP
0.011
-0.450
0.017
0.038
0.060
-0.002
-0.069
-0.050
Industry Avg
0.111
0.013
0.089
0.088
0.116
0.077
0.056
0.012
TJX’s sales grow steady and so as the industry average. In general, TJX is above the average, but
not very much. Compared to the competitors except JCP, TJX didn’t show any advantages. Besides,
TJX’s average annual growth rate is 8.208%, its also better than most of its competitors and
industry.
10
Net Income Growth
Net Income Growth
2.500
2.000
1.500
1.000
0.500
0.000
-0.500
-1.000
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.070
0.138
-0.074
0.131
0.126
-0.006
0.185
0.326
ROST
0.298
0.134
-0.255
0.175
0.210
0.081
0.170
0.450
TGT
0.204
0.113
0.024
0.277
0.157
0.022
-0.223
0.124
WMT
0.205
0.102
0.159
0.111
0.067
0.056
0.030
0.088
KSS
0.298
-0.081
0.190
0.197
0.317
-0.022
-0.183
0.120
JCP
2.254
-0.019
0.805
0.487
0.161
-0.026
-0.487
-0.561
Industry Avg
0.229
0.092
0.139
0.156
0.103
0.039
-0.042
0.091
Net income is a measure of profit in a company’s past periods. In 2002 – 2007, TJX didn’t do well for
their net income, the growth rates are below the industry average and some years even show
negative numbers. From 2008, the situation is getting better. The growth rate is high above the
industry average and most of the competitors.
11
Cash Flow From Operations Growth
Cash Flow Opers Growth
3.000
2.500
2.000
1.500
1.000
0.500
0.000
-0.500
-1.000
2003
2004
2005
2006
2007
2008
2009
2010
TJX
-0.004
-0.152
0.398
0.075
0.032
0.139
-0.152
0.968
ROST
0.369
-0.052
-0.054
0.258
0.351
-0.302
0.650
0.523
TGT
-0.202
0.987
0.209
0.165
0.092
-0.152
0.074
0.328
WMT
0.221
0.276
-0.060
0.172
0.131
0.035
0.121
0.134
KSS
0.236
0.127
0.242
-0.059
2.515
-0.602
0.378
0.313
JCP
0.347
-0.437
0.485
0.203
-0.077
0.008
-0.072
0.365
Industry Avg
0.162
0.252
0.025
0.159
0.194
-0.061
0.111
0.215
Operating Cash Flow is the cash that a company generates through running its business. Cash flows are just
as or a more important measurement of how well a company is doing because they need incoming cash to
cover their debts and operate their business, if they have no debt. TJX’s performance looks volatile. It
was way below the average, and then jumped to 0.398 in 2005, and down to 0.075 in 2006. In
2009, the growth went to negative, but rose to 0.968 in 2010. However, cash flow is expected to be
lower in fiscal 2011 than it was in fiscal 2010.
EBIT Growth
0.800
0.600
0.400
0.200
0.000
-0.200
-0.400
-0.600
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.086
0.119
-0.046
0.004
0.214
-0.020
0.173
0.359
ROST
0.282
0.132
-0.210
0.100
0.197
0.081
0.176
0.466
TGT
0.218
0.078
0.023
0.193
0.180
0.040
-0.165
0.062
WMT
0.157
0.088
0.119
0.097
0.082
0.056
0.097
0.065
KSS
0.282
-0.062
0.166
0.187
0.281
-0.006
-0.149
0.115
JCP
0.724
-0.268
0.629
0.215
0.207
-0.024
-0.459
-0.329
Industry Avg
0.195
0.059
0.109
0.121
0.127
0.040
0.001
0.076
12
EBIT is a measure of a firm’s profitability that excludes interest and tax expenses. The whole
performance still looks volatile, but has more curves. The numbers below the average are a little
bit lower, while the numbers above the average are much higher than it.
Also, TJX’s average annual growth rate is 10.881%, is higher than most of its competitors and
industry.
13
4.2 Profitability
Gross Margin
Gross Margin
0.450
0.400
0.350
0.300
0.250
0.200
0.150
0.100
0.050
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.261
0.260
0.262
0.256
0.254
0.261
0.265
0.264
0.284
ROST
0.270
0.274
0.275
0.249
0.247
0.244
0.247
0.258
0.281
TGT
0.317
0.334
0.340
0.329
0.336
0.338
0.339
0.295
0.303
WMT
0.212
0.215
0.240
0.244
0.246
0.250
0.252
0.259
0.266
KSS
0.343
0.344
0.331
0.352
0.355
0.364
0.365
0.370
0.378
JCP
0.307
0.321
0.394
0.386
0.390
0.393
0.386
0.374
0.394
Industry Avg 0.285
0.291
0.307
0.303
0.305
0.308
0.309
0.303
0.317
Gross Margin represents the amount of money the company generated over the cost of producing its
goods or services. TJX’s gross margin is always below the industry average.
EBIT Margin
EBIT Margin
0.140
0.120
0.100
0.080
0.060
0.040
0.020
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.084 0.082 0.082 0.070 0.066 0.073 0.067 0.077 0.098
ROST
0.086 0.094 0.095 0.070 0.066 0.070 0.070 0.076 0.101
TGT
0.067 0.074 0.073 0.077 0.082 0.085 0.083 0.068 0.071
WMT
0.046 0.048 0.049 0.050 0.050 0.049 0.048 0.049 0.051
KSS
0.114 0.120 0.100 0.102 0.106 0.117 0.110 0.094 0.100
JCP
0.020 0.033 0.044 0.071 0.083 0.095 0.093 0.054 0.038
Industry Avg 0.070 0.075 0.074 0.073 0.075 0.081 0.078 0.070 0.077
TJX was higher than the average, then fall below it slightly. In the last two years TJX’s EBIT margin
has improved to once again exceed the industry average.
14
Net Profit Margin
Net Profit Margin
0.080
0.070
0.060
0.050
0.040
0.030
0.020
0.010
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.050 0.048 0.049 0.041 0.043 0.045 0.041 0.048 0.060
ROST
0.052 0.057 0.058 0.040 0.040 0.043 0.044 0.047 0.062
TGT
0.034 0.038 0.038 0.040 0.046 0.047 0.045 0.034 0.038
WMT
0.031 0.033 0.035 0.036 0.037 0.035 0.034 0.033 0.036
KSS
0.066 0.071 0.057 0.060 0.063 0.071 0.066 0.054 0.058
JCP
0.004 0.011 0.020 0.036 0.052 0.057 0.056 0.031 0.014
Industry Avg 0.040 0.043 0.043 0.042 0.047 0.050 0.048 0.041 0.044
A higher profit margin indicates a more profitable company that has better control over its costs
compared to its competitors. However, TJX here has the same situation as the EBIT margin, and the
trend still moves steady and flatly, and in the recent two years profit margin has increased to be
higher than most if its competitors and our industry average.
15
ROE
ROE
0.600
0.500
0.400
0.300
0.200
0.100
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.422 0.421 0.445 0.370 0.379 0.371 0.349 0.429 0.483
ROST
0.306 0.339 0.326 0.223 0.249 0.277 0.278 0.311 0.411
TGT
0.191 0.191 0.180 0.156 0.177 0.187 0.184 0.153 0.171
WMT
0.201 0.216 0.214 0.221 0.222 0.212 0.204 0.204 0.212
KSS
0.199 0.204 0.153 0.152 0.153 0.192 0.185 0.138 0.136
JCP
0.018 0.059 0.062 0.128 0.220 0.273 0.230 0.120 0.056
Industry Avg 0.223 0.238 0.230 0.208 0.234 0.252 0.238 0.226 0.245
Return on equity measures how much profit a company generates with the money shareholders have
invested. TJX performs very well in ROE, the numbers are all higher than both the average and the
competitors.
ROA
ROA
0.200
0.180
0.160
0.140
0.120
0.100
0.080
0.060
0.040
0.020
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.167 0.154 0.158 0.129 0.131 0.134 0.122 0.143 0.178
ROST
0.151 0.165 0.151 0.100 0.108 0.112 0.110 0.129 0.173
TGT
0.063 0.063 0.061 0.059 0.072 0.077 0.070 0.050 0.056
WMT
0.083 0.090 0.089 0.091 0.088 0.084 0.082 0.081 0.086
KSS
0.113 0.114 0.091 0.096 0.098 0.122 0.111 0.081 0.081
JCP
0.006 0.021 0.020 0.041 0.073 0.090 0.082 0.043 0.020
Industry Avg 0.097 0.101 0.095 0.086 0.095 0.103 0.096 0.088 0.099
ROA gives an idea as to how efficient management is using its assets to generate earnings. We are glad
to see that TJX’s ROA is higher than average and almost all of the competitors.
16
4.3 Liquidity
Current Ratio
Current Ratio
3.000
2.500
2.000
1.500
1.000
0.500
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
1.609
1.430
1.450
1.318
1.394
1.573
1.446
1.310
1.659
ROST
1.460
1.472
1.574
1.585
1.398
1.399
1.383
1.375
1.466
TGT
1.368
1.586
1.555
1.694
1.502
1.323
1.605
1.664
1.627
WMT
1.035
0.935
0.920
0.900
0.898
0.901
0.821
0.884
0.870
KSS
2.800
2.178
2.695
2.502
2.443
1.773
2.102
2.039
2.295
JCP
1.929
2.008
1.735
2.497
2.427
1.904
2.022
2.226
2.047
Industry Avg 1.700
1.602
1.655
1.749
1.677
1.479
1.563
1.583
1.661
Current ratio measures the company's ability to pay back its short-term liabilities with its short-term
assets. The higher the current ratio, the more capable the company is at paying its obligations. In
general, current ratio of TJX is below the average, though the difference is not that much, but it is well
above 1.
Quick Ratio 2
Quick Ratio 2
1.600
1.400
1.200
1.000
0.800
0.600
0.400
0.200
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.427 0.363 0.200 0.194 0.269 0.408 0.317 0.216 0.656
ROST
0.124 0.270 0.319 0.301 0.266 0.372 0.298 0.380 0.684
TGT
0.614 0.840 0.781 0.942 0.821 0.681 0.942 0.915 0.890
WMT
0.153 0.149 0.172 0.167 0.180 0.203 0.156 0.202 0.217
KSS
1.332 1.032 1.156 1.096 1.110 0.323 0.375 0.372 0.949
JCP
0.786 0.764 0.857 1.444 1.148 0.845 0.826 0.968 1.048
Industry Avg 0.573 0.570 0.581 0.690 0.632 0.472 0.486 0.509 0.741
17
Quick ratio 2 measures a company's ability to meet its short-term obligations with its most liquid assets
and is calculated by dividing the sum of cash, accounts receivable, and short-term marketable security
by current liabilities. In the past 9 years, TJX kept lower than the average and below some of the
competitors.
4.4 Efficiency
Asset Turnover
Asset Turnover
3.500
3.000
2.500
2.000
1.500
1.000
0.500
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
3.319 3.191 3.197 3.149 3.020 3.007 2.940 2.974 2.974
ROST
2.903 2.890 2.598 2.495 2.687 2.592 2.527 2.744 2.804
TGT
1.828 1.665 1.606 1.471 1.564 1.645 1.547 1.465 1.475
WMT
2.696 2.745 2.568 2.535 2.392 2.381 2.376 2.455 2.428
KSS
1.705 1.622 1.580 1.594 1.565 1.709 1.681 1.497 1.403
JCP
1.694 1.801 0.984 1.116 1.361 1.584 1.472 1.405 1.428
Industry Avg 2.357 2.319 2.089 2.060 2.098 2.153 2.090 2.090 2.085
Asset turnover measures a firm's efficiency as sales generated per dollar of assets. It also indicates
pricing strategy. Still, the numbers of TJX are consistently higher than the industry from 2002 to the
present.
18
Receivables Turnover
Receivables Turnover
250.000
200.000
150.000
100.000
50.000
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
163.49 165.60 160.19 141.69 122.59 136.02 144.27 132.49 139.15
ROST
171.15 182.02 179.84 150.08 163.98 188.18 176.78 164.83 168.24
TGT
13.821 9.348 8.494 8.310 8.764 8.734 7.857 7.158 7.528
WMT
115.60 119.04 152.48 192.13 144.03 127.42 115.49 106.29 100.64
KSS
9.871 9.985 9.605 9.214 8.812 18.818 0.000 0.000 0.000
JCP
40.231 46.111 38.373 108.68 141.74 110.88 80.896 57.950 47.004
Industry Avg 85.696 88.686 91.499 101.68 98.322 98.344 87.550 78.120 77.096
An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting
debts. TJX has above the average and most of the competitors except ROST.
4.5 Long Term Solvency
Debt-to-Equity
Debt-to-Equity Ratio
1.400
1.200
1.000
0.800
0.600
0.400
0.200
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
0.524
0.492
0.446
0.343
0.426
0.353
0.400
0.180
0.273
ROST
0.000
0.039
0.066
0.065
0.000
0.165
0.155
0.151
0.130
TGT
1.029
1.079
0.923
0.693
0.642
0.555
0.988
1.276
0.985
WMT
0.534
0.498
0.461
0.471
0.566
0.499
0.517
0.529
0.515
KSS
0.392
0.301
0.257
0.219
0.176
0.186
0.336
0.305
0.261
JCP
0.845
0.776
0.943
0.713
0.859
0.702
0.660
0.844
0.628
Industry Avg 0.554
0.531
0.516
0.417
0.445
0.410
0.509
0.547
0.465
19
Debt-to-Equity indicates what proportion of equity and debt the company is using to finance its assets.
TJX’s numbers show that it is aggressive in financing its growth with debt slightly. TJX uses less debt
than its competitors and industry average.
TIE
TIE
1200.000
1000.000
800.000
600.000
400.000
200.000
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
22.065 26.875 32.460 31.246 26.901 32.538 31.934 40.152 40.405
ROST
80.563 1102.0 0.000 98.567 79.366 134.34 39.355 43.061 64.830
TGT
5.776 5.551 6.295 6.318 8.075 7.847 7.058 4.346 5.748
WMT
6.912 9.809 11.117 10.850 9.865 8.458 7.893 8.588 9.666
KSS
13.078 15.741 12.953 15.288 17.840 24.384 18.280 10.971 12.317
JCP
1.436 2.515 2.715 4.500 5.586 6.993 6.352 3.716 2.540
Industry Avg 21.638 193.74 13.108 27.795 24.605 35.761 18.479 18.472 22.584
A metric used to measure a company's ability to meet its debt obligations. TIE is calculated by taking a
company's earnings before interest and taxes, and dividing by the total interest payable on bonds and
other contractual debt. Basically, TJX is above the average and much better than other companies except
ROST.
20
Financial Leverage
Financial Leverage
3.500
3.000
2.500
2.000
1.500
1.000
0.500
0.000
2002
2003
2004
2005
2006
2007
2008
2009
2010
TJX
2.522
2.731
2.815
2.871
2.903
2.767
2.869
2.995
2.715
ROST
2.033
2.058
2.158
2.234
2.297
2.461
2.515
2.403
2.379
TGT
3.035
3.049
2.925
2.643
2.471
2.425
2.647
3.055
3.050
WMT
2.432
2.393
2.406
2.420
2.519
2.525
2.497
2.515
2.452
KSS
1.759
1.784
1.689
1.591
1.559
1.574
1.675
1.705
1.679
JCP
3.051
2.873
3.066
3.154
3.000
3.030
2.811
2.780
2.753
Industry Avg 2.472
2.481
2.510
2.486
2.458
2.464
2.502
2.576
2.505
Identifies the degree to which a company is utilizing borrowed money (leverage of all types). This ratio
shows that TJX uses leverage as much or more than its competitors to finance its assets.
4.6 DuPont Analysis
The DuPont Analysis model decomposes Return on Equity into three main components: Asset
Turnover, Net Profit Margin, and Financial Leverage. The purpose of DuPont analysis is to analyze the
driving factors behind ROE. Asset turnover is calculating by dividing Sales (or Total Revenue) by
Average Assets and measures the company’s asset management by showing how much revenue is
produced per $1 of assets. The Net Profit Margin is calculated by dividing Net Income by Sales or
(Total Revenue) and measures the company’s efficiency at operating management by showing how
much TJX is retaining per $1 of sales after all expenses are deducted. Financial Leverage is calculated
by dividing Total Assets by Total Shareholder’s Equity and measures what extent it is using borrowed
money.
Based on the DuPont Analysis, TJX’s asset turnover has decreased year by year. Net profit margin and
financial leverage have increased steady in the past 4 years.
The main driver behind the changes in ROE from 2004 to 2005, from 2007 to 2008, and from 2008
to 2009 and 2010 is net profit margin, we can see asset turnover and financial leverage are
relative stable to net profit margin. When net profit margin has significant change, it impacts ROE.
Dupont Analysis
Asset Turnover
Net Profit Margin
Financial
Leverage
ROE
2002
3.319
5.046%
2003
3.191
4.828%
2004
3.197
4.940%
2005
3.149
4.088%
2006
3.020
4.323%
2007
3.007
4.463%
2008
2.940
4.139%
2009
2.974
4.815%
2010
2.974
5.982%
2.522
42.229%
2.731
42.069%
2.815
44.464%
2.871
36.963%
2.903
37.908%
2.767
37.143%
2.869
34.913%
2.995
42.895%
2.715
48.313%
21
Income Statement Forecast for 2012
TJX
2002
2003
2004
2005
2006
2007
2008
2009
2010
YTD2011
2011(E)
2012
Oct. 2010
Yearly share
0.475%
0.516%
0.547%
0.569%
0.564%
0.582%
0.600%
0.602%
0.679%
0.673%
2,253,665
2,323,987
2,436,593
2,621,949
2,826,764
2,988,504
3,107,566
3,153,953
2,988,958
2,318,590
0.690%
2.484%
Industry Revenues
Total Rev
Total COGS excl. D&A
COGS excl. D&A as % of
Rev
GROSS PROFIT
2.279%
3.120%
4.845%
7.607%
7.812%
5.722%
3.984%
1.493%
-5.231%
10,709.0
11,981.2
13,327.9
14,913.5
15,955.9
17,404.6
18,647.1
18,999.5
20,288.4
11.797%
11.880%
11.240%
11.896%
6.990%
9.079%
7.139%
1.890%
6.784%
7,918.8
8,871.7
9,838.8
11,088.9
11,900.4
12,860.6
13,713.1
13,993.0
14,530.4
3,158,818
5.683%
3274665
3.667%
15,610.5
22,595.2
11033.19
16264.54
73.95%
74.05%
73.82%
74.35%
74.58%
73.89%
73.54%
73.65%
71.62%
70.68%
71.98%
2,790.157
3,109.504
3,489.129
3,824.586
4,055.557
4,544.044
4,934.074
5,006.456
5,758.015
4577.28
6330.65
SGA, Operating Expenses
1,684.4
1,922.5
2,155.2
2,500.1
2,691.3
2,916.5
3,119.0
3,170.0
3,328.9
2590.00
3767.17
Op Exp as % of Revenue
Other Extraordinary
Expense
15.73%
16.05%
16.17%
16.76%
16.87%
16.76%
16.73%
16.68%
16.41%
16.59%
16.67%
197
-30.5
OPERATING INCOME
-11.6
$1,105.77
$1,186.97
$1,333.96
$1,324.47
$1,364.29
$1,627.52
$1,618.11
$1,866.94
$2,429.07
$1,998.88
$2,563.49
$492.80
$492.30
$246.40
$307.20
$465.60
$856.70
$732.60
$453.50
$1,750.90
$1,469.10
11.321%
2.131%
1.320%
3.125%
3.060%
5.069%
4.751%
3.030%
1.987%
0.497%
0.700%
Interest/Investment Income
15.0
10.5
6.5
7.7
9.4
23.6
40.7
22.2
9.0
$8.700
$11.690
Interest Expense
Net Interest Expense
(Income)
40.6
35.9
33.8
33.5
39.0
39.2
39.1
36.5
48.5
$30.000
$43.010
$25.643
$25.373
$27.252
$25.757
$29.632
$15.566
-$1.598
$14.291
$39.509
$21.300
$31.320
2.0
16.0
30.7
12.0
12.0
7.6
204.1
207.9
238.4
279.1
314.3
353.1
369.4
401.7
438.0
$341.100
$874.04
$937.72
$1,068.33
$988.95
$1,008.37
$1,246.85
$1,242.71
$1,450.94
$1,951.56
$1,636.48
333.6
359.3
410.0
379.3
318.9
470.1
470.9
536.1
738.0
$621.00
$776.02
$540.40
$578.39
$658.37
$609.65
$689.46
$776.76
$771.77
$914.89
$1,213.57
$1,015.48
$1,266.14
Cash & ST Investment
The return of investment
$1,670.00
OTHER INCOME
(EXPENSE)
Unusual Expense
Depreciation
EBT
Income Taxes
EAT
After Tax Adjustment
-$40.000
-$0.60
$460.000
$490.000
$2,042.17
-$34.300
$38.10
Extraordinary
NET INCOME
$500.40
$578.39
$658.37
$609.65
$689.46
$738.06
$771.77
$880.59
$1,213.57
$1,015.48
$1,266.14
Wgt Avg Diluted Shares
556268
554645
531301
509661
491500
480045
468046
442255
427619
409742
397000
$0.90
$1.04
$1.24
$1.20
$1.40
$1.54
$1.65
$1.99
$2.84
$2.48
$3.19
38.17%
38.32%
38.37%
38.35%
31.63%
37.70%
37.90%
36.95%
37.82%
37.95%
38.00%
EPS
Realized Tax Rates:
22
5. Earning Forecast
This section forecasts the Income Statement for Fiscal 2012 by estimating the industry revenue
and then to estimate the EPS of 2012.
Industry Revenue
Retail industry is highly related to the economic condition. If the economic condition is good,
people are willing to spend more. Therefore, the retail industry will have better performance. The
National Bureau of Economic Research announced that the recession ended in June 2009.
Although the economy is in an early stage of recovery, consumer confidence remains weak and
unemployment high. Nevertheless, business for many retailers has stabilized over the past year.
We believe the economy is on the path of slow recovery, so we estimate the retail industry growth
rate in 2012 is 3.667%, which is the geometric average growth rate of past 10 year, we think this
number is reasonable and convincible.
The data we use for the historical data is from US Census Bureau, it is monthly data, so we can
adjust the number to match the fiscal year end in January.
Market Share
The market share of TJX has constantly grown in the past 10 years. Due to the expansion
programs we mentioned before, we believe TJX’s market share will continue growth in the future.
Thus, we use 0.69% to be the market share in 2012.
TJX Revenue
After we estimated the industry revenue and market share for 2012, we generate the total
revenue of TJX is forecasted to be $22,595.2 million.
COGS
The percentage of cost of good sold excluding Depreciation and Amortization to revenue shows a
decrease trend since 2006, from 74.58% to 70.68%. For the conservative purpose, we use the last
two years and the 2011 YTD numbers to get an average 71.98% and multiply this by our revenue
estimate to calculate our COGS expense estimate.
SGA, Operating expenses
The percentages of SG&A expense to revenue were stable during the past years. Therefore, we use
the average of the last five years to get the number 16.67%.
Interest/Investment Income
The interest/Investment Income is influenced by the prior year’s Cash and ST investment. We
calculated the rate of return of investment for each year and found that the rate was continuing
decreasing from 2007 to now. That is because the FED decreased interest rate during this period.
23
Since the FED decided to maintain the expansionary monetary policy, we expect the interest rate
will remain in the low level in the foreseeable future. So we use the 0.7% to be the return rate
times the cash and ST investment we estimate for the Fiscal 2011 to get the $11.69 million for
2012.
Interest expense
TJX has two corporate notes. One is $375 million and the effective coupon rate 7.00%. The other
one is $400 million and the effective coupon rate 4.19%. Then we got the interest expense for
Fiscal 2012 is $43.01 million.
Depreciation
The depreciation expense was increased stable during the past few years. We notice that the
increase is about $30 million each year, so we use this number to forecast the depreciation
expense for 2012.
Tax rate
The effective tax rate we use 38% is disclosed in the TJX annual report 2010. TJX anticipated the
tax rate would be 38%~38.5% in the future.
Earning Per Shares
To forecast weighted average diluted shares has several steps.
First, we know TJX has two $1 billion repurchase programs. One was completed in the third
quarter in Fiscal 2011(Oct 2010) and the second repurchase program has about $950 million
remaining at Oct. 30, 2010. TJX repurchase their stock each quarter continually, therefore, we
believe they will complete the second repurchase program in Fiscal 2012.
Second, we use the $950 million divided by $45 to get how many shares they can repurchase.
Third, we calculated the gap between Shares Outstanding and Diluted shares and found the
median of the gap is 22.3 million.
Fourth, we use current shares outstanding less the repurchase shares then plus the gap to get the
number we forecast the weighted average diluted shares for Fiscal 2012.
Then we use the Net Income divided by the weighted average diluted shares to get out EPS in
2012.
24
6. Relative Valuation
In relative valuation, the value of an asset is compared to the values assessed by the market for similar
or comparable assets. In the retail industry, we compare TJX with ROST, WMT, TGT, KSS, JCP, the
whole industry, and S&P 500 Index (Consumer Discretionary).
The chart is the TJX and its competitors trailing P/E ratios, from 2002 to 2010.
P/E
TJX
ROST
TGT
WMT
KSS
JCP
Industry Avg
S&P 500 or Index
2003
2004
2005
2006
2007
2008
2009
2010
17.000
15.480
15.590
26.410
28.010
15.510
19.667
19.180
17.960
18.950
18.890
26.530
25.760
21.640
21.622
23.610
20.690
25.330
23.610
21.740
23.040
19.420
22.305
20.500
18.110
20.960
20.200
16.950
18.270
14.570
18.177
19.640
18.140
19.050
19.120
16.500
21.420
16.650
18.480
19.190
19.040
15.340
16.640
16.210
13.430
9.600
15.043
19.510
9.710
12.630
10.910
13.900
12.700
6.520
11.062
32.120
13.380
12.970
15.540
14.440
15.590
22.990
15.818
21.440
2011 LTM
12/1/10
13.410
14.840
15.230
13.680
15.910
24.740
16.302
xxxxxxxx
Price to earnings is measured by dividing the price paid for a share by the earnings per share and shows
the amount people are willing to pay for $1 of the firm’s earnings. This can be an indicator of the
company’s implied expected growth.
TJX's P/E divided by competitors or industry P/E (Adjustment Factor)
ROST
TGT
WMT
KSS
JCP
Industry Avg
S&P 500 or
Index
2003
2004
2005
2006
2007
2008
2009
2010
1.0982
1.0904
0.6437
0.6069
1.0961
0.8644
0.9478
0.9508
0.6770
0.6972
0.8299
0.8306
0.8168
0.8763
0.9517
0.8980
1.0654
0.9276
0.8640
0.8965
1.0684
0.9912
1.2430
0.9963
0.9522
0.9487
1.0994
0.8469
1.0895
0.9816
1.2412
1.1442
1.1746
1.4177
1.9833
1.2657
0.7688
0.8900
0.6986
0.7646
1.4893
0.8778
1.0316
0.8610
0.9266
0.8582
0.5820
0.8459
2011 LTM
12/1/2010
0.903639
0.880499
0.980263
0.842866
0.542037
0.822615
0.8863
0.7607
1.0093
0.9221
0.9453
0.9759
0.3023
0.6241
xxxxxxxxx
The following chart is the Mean and Median of TJX’s P/E relative to competitors, Industry, and the
consumer discretionary/ technology sectors of the S&P 500. The numbers marked in red color are the
outliers, so we calculated the mean and median without these numbers.
ROST
TGT
WMT
KSS
JCP
Industry Avg
S&P 500 or
Index
Mean
0.9229
0.9243
0.8807
0.8132
0.9921
0.8934
Median
0.9257
0.8933
0.9391
0.8449
1.0774
0.8711
0.8748
0.9221
25
PRICE ESTIMATES
Use mean to be adjustment factor
ROST
TGT
WMT
KSS
JCP
Industry Avg
S&P 500 or
Index
TJX
E(EPS)
$3.19
$3.19
$3.19
$3.19
$3.19
$3.19
Competitor's
E(P/E)
13.450
13.190
12.290
12.860
20.140
14.386
Adjustment
Factor(Avg.)
0.922885
0.924291
0.880702
0.813241
0.992144
0.893357
Price
(Today)
39.60
38.89
34.53
33.36
63.74
41.00
$3.19
14.350
0.874809
40.05
Use median to be adjustment factor
TJX
E(EPS)
ROST
$3.19
TGT
$3.19
WMT
$3.19
KSS
$3.19
JCP
$3.19
Industry Avg
$3.19
S&P 500 or
Index
$3.19
Competitor's
E(P/E)
13.450
13.190
12.290
12.860
20.140
14.386
Adjustment
Factor(median)
0.925698
0.893272
0.939147
0.844869
1.077443
0.871107
Price
(Today)
39.72
37.59
36.82
34.66
69.22
39.98
14.350
0.922098
42.21
In this case, we found there is no significant different between mean and median.
The prices calculate from mean and median have similar range. However, we think median can reflect
the P/E relationship more accurately. Based on the result of relative valuation, most of the prices are
about 10% lower than the current price except the price calculated by JCP’s P/E.
Use industry P/E average to be future expected P/E
Industry
TJX
Avg.
Adjustment
E(EPS)
E(P/E)
Factor(median)
Industry
Avg
$3.19
17.772
0.871107
Price
(future)
49.384436
In this case, we assume that industry P/Es tend to be mean-reverting. Therefore, we use the 8
years industry P/E average to be the future expected P/E, and then calculated the future price. The
result shows the TJX’s current price is undervalued.
26
7. Absolute Valuation
Absolute valuation is used to determine the intrinsic value of TJX by calculating the present value of
future cash flows. Future cash flow can take the form of dividends, capital gains, capital loss, earnings,
and cash flows. We use the Dividend Discount Model to estimate its intrinsic value.
In order to start the valuation, we need to calculate its cost of capital (that is K) in the DDM and we
calculate 3 k.
Risk Free rate
Beta
Risk Premium
YTM Bond rate
Equity Premium
K1
3.082%
0.783
7.828%
K2
K3
3.082%
0.783
5.95%
3.452%
3.5%
6.952%
9.21%
7.74%
In the first K, We used the 10 year Treasury STRIP for the risk free rate, and searched the 10 year
Beta(monthly) from Bloomberg, and used 10.91% of US market return minus the 10 year Treasury
STRIP and get 7.828% of risk premium
So, we use the CAPM formula to calculated the first K:
K= Risk Free Rate+ Beta*(Risk Premium)
K1=9.21%
For the second K, we used the 10-year maturity bond YTM 3.452% from Bloomberg and added the
3.500% equity premium, then we got K2=6.952%.
Also, we used 5.95% for the risk premium we have discussed in class and got K3, which is adjust from
K1, equals 7.74%
Then we found TJX’s historical dividend per share and earning per share from Factset. And use DPS
divided by EPS to get payout ratio and grow rate.
DPS
EPS
payout
ratio
growth
rate
DPS
EPS
payout
ratio
growth
rate
2000
0.070
0.829
2001
0.080
0.930
2002
0.090
0.971
2003
0.120
1.076
2004
0.140
1.284
2005
0.180
1.205
8.445%
8.600%
9.264%
11.157%
10.906%
14.937%
0.14286
2007
0.280
1.628
12.500%
2008
0.360
1.649
33.333%
2009
0.440
2.069
16.667%
2010
0.480
2.838
28.571%
2006
0.240
1.412
17.003%
17.202%
21.833%
21.270%
16.913%
33.333%
16.667%
28.571%
22.222%
9.091%
Now we need to get the forecast DPS and EPS.
27
We did the calculation of geometric average growth rate of DPS in 11 years, 8 years, 5 years, 3 years
and 2 years. The past 11 years, the average annual growth rate of dividends is 21.569% and then rise
to 22.284% in the last 8 years. After that, the rate went down from 20.112% to 16.775%.
When the DPS is getting bigger, TJX may not able to maintain the high dividend growth rate. We use a
lower growth rate -- 16% -- to forecast dividends for the conservative purpose.
Geometric Average grow rate of DPS
Geo(11year)
Geo(8year)
Geo(5year)
Geo(3year)
Geo(2year)
21.569%
22.284%
20.112%
18.563%
16.775%
Then we need to estimate DPS. According TJX 2009 annual report，TJX planned to pay $0.15 per
share quarterly dividend in fiscal 2011 and intend to continue to pay comparable dividends in the
future. So we forecast DPS of 2011 is 0.6.
(http://www.tjx.com/investor_annualreports.asp)
According the estimate for the average annual growth rate, we calculated the EPS of 2012 to 2017.
DPS
EPS
payout
ratio
growth rate
2012
0.696
$3.19
2013
0.80736
2014
0.936538
2015
1.0863836
2016
1.26020499
2017
1.461838
21.791%
16.000%
Then we using the K1, K2 and K3 to estimate discount DPS from 2012 to 2017 back to their present
values.
K1
K2
K3
2012
0.637
0.651
0.646
2013
0.677
0.706
0.696
2014
0.719
0.766
0.749
2015
0.764
0.830
0.806
2016
0.811
0.901
0.868
2017
0.862
0.977
0.935
Total
4.470
4.830
4.699
After that, we use the growth rate 1% to 9% in the post-2017 period to estimate the intrinsic value for
the different K to estimate the present value at 2017 of all post-2017 cash flows, and then discounted
these back to present time.
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cost of capital1
cost of capital2
cost of capital3
1%
15.067
21.403
30.103
6.94%
cost of
capital1
cost of
capital2
cost of
capital3
2%
16.656
24.948
37.933
4.42%
3%
18.757
30.285
52.492
4%
21.664
39.239
88.984
5%
25.951
57.368
348.224
6%
32.909
113.581
xxxxx
7%
46.159
xxxxx
xxxxx
8%
81.286
xxxxx
xxxxx
9%
448.866
xxxxx
xxxxx
2.58%
45.035
45.109
45.087
We found that use the growth rate of 6.94%, 4.42%, and 5.30% for K1, K2, and K3, the present value of
intrinsic value estimates will be equal the current price. ($45.07 as 12/6/2010)
The TJX’s dividend growth rate is 16%, but the highest growth rate match current price is just 6.94%,
which is far below than 16%. Therefore, we found the TJX’s stock price is undervalued according to the
absolute valuation.
8. Conclusion
It looks like the economy is now swinging back in the positive direction, with more optimism than
pessimism now becoming evident.
With the Federal Reserve’s projection of a stabilization of consumer spending and higher growth in
GDP, Retail industry will definitely benefit and be able to capitalize on consumers’ loosened budget.
The industry as a whole would then have the potential to grow next year.
In Addition, due to high unemployment rate and low Consumer Confidence, most of people still prefer
to spend their money in off-price stores in order to spend effectively.
As to TJX, it is true we get a overvalue result in relative valuation. However, in Absolute Valuation,
TJX’s dividend growth rate (16%) seems much higher than the current growth rates. In addition, from
the ratio analysis we can know that, TJX has good performance in most of ratios. Add to company
strategy analysis, flexible business model, good trend in industry analysis and Store Expansion plan,
we believe that TJX’s sales will continue growth either in recessions or recoveries with sustainable
profitability in the future. Therefore, we conclude that the stock price of TJX is undervalued and
worthwhile to buy.
Considering the above analysis summary, we recommend to BUY 500 shares for TJX Companies Inc.
9. Bibliography
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1. TJX 2009 Annual Report- Retrieved Dec 2, 2010, from
<http://www.tjx.com/investor_annualreports.asp>
2. http://finance.yahoo.com/
3.Discount Stores Crop Up in Manhattan’s Elite Neighborhoods, Oct.12, 2010
http://www.nytimes.com/2010/10/13/realestate/commercial/13discount.html
4. TJX to open Marshalls Stores In Canada, July 20, 2010
http://money.ca.msn.com/investing/news/breaking-news/article.aspx?cpdocumentid=24932659
5. The TJX Companies, Inc. Reports Strong Q3 FY11 EPS, up 14% over 40% Growth Last Year, Nov.
16,2010
http://www.businesswire.com/news/tjx/20101116006260/en
6. Standard & Poor’s Retailing Industry Survey
http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/showIndustrySurvey.
do?code=reg
7. Christmas Holiday Spending & Retail Buying Trends,
http://retailindustry.about.com/od/statisticsresearch/a/Christmas-Holiday-Spending-AndRetail-Buying-Trends-2005-2010-Sales-Predictions.htm
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