Headlines

Analyst Ike Boruchow Downgrades TJX Stock

TJX may struggle to maintain growth, according to Wells Fargo analyst

Published

6 years ago

January 8, 2018

kmpeyton

TJX Cos. Inc. (Framingham, Mass.) has grown recently, reportedly becoming the second-largest U.S. apparel retailer behind Walmart Stores Inc. The growth may prove unsustainable, however, according to Wells Fargo (San Francisco) analyst, Ike Boruchow.

In an unexpected move, the analyst downgraded TJX to "market perform" from "outperform," according to Women’s Wear Daily, noting the size of its Marmaxx division, which includes T.J. Maxx and Marshalls.

Boruchow’s decision is being interpreted as a warning sign for brick-and-mortar apparel. “You could have made the argument they were too big a year ago or two years ago if you wanted to,” Boruchow told WWD. “I think it’s easier to make the argument now because their business is starting to slow down.”

The retailer’s stock took a slight hit from the downgrade but quickly rebounded with a gain of 0.9 percent.

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design