TJX (TJX) Results Show Strength of Business Model - Analyst. Wells Fargo maintained a Market Perform rating on The TJX Companies (NYSE: TJX) and raised its price target to $52-$56 (from $49-$53).
On Tuesday, TJX Cos. reported Q2 EPS of $0.66, $0.03 better than the analyst estimate of $0.63. Revenue for the quarter came in at $6.44 billion versus the consensus estimate of $6.37 billion. Results demonstrate the strength of TJX Companies business model, thinks Wells Fargo analyst Paul Lejuez. "Despite mixed results across retail, TJX once again showed that it performs well in all economic environments. Not only was the top-line good, but margins were also strong, in part benefitting from the attractive inventory buys the company is getting," said Lejuez.
"We expect the off-price model to continue to perform well, though with the stock trading at nearly 10x our FY2013E EBITDA we believe the market appreciates this performance," he added. Investor Information. Succeeding in All Types of Environments The TJX business model is built to have tremendous flexibility and grow with the times, enabling us to navigate through economic downturns as well as upturns.
Target Stores – A 50 year-old Strategy to Not Compete in the Status Quo. Blair Severn, Azure Corporation Heather Wilson, Rotman Information Solutions Knowing how did they do it, how Target Stores became the success they are today, begins with understanding Target’s fifty year-old strategy to “not compete” in the status quo.
In May 1962 when the first Target store opened its doors, competing in the status quo meant figuring out how to be the better department store or be the better discount store. The founders of Target chose neither and chose both, ‘putting an end to the status quo’. Fifty years ahead of their time, Target’s success was set in motion by their decision to put aside the binary limits of either-or. In his book The Opposable Mind: How Successful Leaders Win Though Integrative Thinking, Roger Martin, Dean of the Rotman School of Management, popularized his contemporary view of management thinking advocating, “there is a way to integrate the advantages of one solution without canceling out the advantages of an alternative solution”.
Target Today. Payment card issue FAQ. What happened?
In mid-December, we learned criminals forced their way into our system, gaining access to guest credit and debit card information. As the investigation continued, it was determined that certain guest information was also taken. The information included names, mailing addresses, email addresses or phone numbers. We have partnered with a leading third-party forensics firm who is thoroughly investigating the breach. Has the issue been resolved? Does that information include social security numbers? There is no indication that Social Security numbers have been taken. Target confirms PIN data was stolen in breach - Dec. 27, 2013. Reversing its initial stance, Target now says that PINs were stolen in the retailer's massive breach of 40 million accounts.
NEW YORK (CNNMoney) However, the retailer believes the PINs remain "safe and secure. " TJX's security breach handling. Eruption of the Crisis TJX Companies Inc. is a leading off-price apparel and home fashion retailer with headquarters situated in Framingham, MA.
TJX Security breach crisis happened on Dec 18, 2006 when TJX discovered that unknown intruders illegally accessed one of its payment systems and stole card data belonging to customers in the U.S., Canada, Puerto Rico and potentially the U.K. and Ireland. All major card brands accepted by TJX were affected, including Visa, MasterCard, American Express and Discover. More than 45.6 million credit card and debit card numbers were stolen, along with name & information of over 100 million customers, affecting customers of its T. Confirms Unauthorized Access to Payment Card Data in U.S. Stores. Target today confirmed it is aware of unauthorized access to payment card data that may have impacted certain guests making credit and debit card purchases in its U.S. stores.
Target is working closely with law enforcement and financial institutions, and has identified and resolved the issue. “Target’s first priority is preserving the trust of our guests and we have moved swiftly to address this issue, so guests can shop with confidence. We regret any inconvenience this may cause,” said Gregg Steinhafel, chairman, president and chief executive officer, Target. “We take this matter very seriously and are working with law enforcement to bring those responsible to justice.”
Approximately 40 million credit and debit card accounts may have been impacted between Nov. 27 and Dec. 15, 2013. Our Businesses. Our Businesses We are The TJX Companies, Inc. and our vision is to be a global, off-price value Company.
Our over 3,000 stores offer a rapidly changing assortment of quality, fashionable, brand name and designer merchandise at prices generally 20%-60% below department and specialty store regular prices, every day. The TJX Companies, Inc. (TJX): TJX Companies Inc.: Riding The Consumer Value Wave. One of the key macro themes underway is that even after employment and wages recover consumers will remain significantly more price conscious relative to attitudes seen over the prior three decade spending boom.
Given this trend, I believe The TJX Companies (TJX) is the best positioned apparel retailer to benefit from a secular shift in consumer preference for greater value. TJX is the leading off-price apparel and home fashions retailer with revenues that are almost three times as large as its nearest competitor, Ross Stores (ROST). The company sells a wide selection of brand-name and designer merchandise at low prices, generally 20% to 60% below department and specialty retail stores, providing customers with both quality and value. How TJX Became a Lesson In Proper Security. The TJX security breach is threatening to rank as one of the most expensive lessons in corporate data security policies.
With the retailer facing anywhere from $500 million to nearly $1 billion in expenses, not to mention a black eye with the public over how their credit card data is secured, this experience should serve as a lesson to other retail outlets on securing their networks.