TJX Companies (TJX) is the industry leader in department stores. The company has a market cap of $45 billion, about twice as large as Macy's (M), and nearly four times as large as Kohl's (KSS) based on market cap. TJX sells clothing, accessories, and home goods through its T.J. Maxx, Marshalls, Home Goods, Winners, T.K. Maxx, Home Sense, and Sierra Trading Post stores, magazines, and websites.
TJX has a long history of rewarding shareholders; the company has not reduced its dividend payments since 1996. The company is a Dividend Achiever, meaning it has paid increasing dividends for 10 or more consecutive years. TJX's business operations, growth prospects, and competitive advantage are analyzed below. Additionally, the TJX stock's dividend, total return, and valuation are discussed so you can see the relative investment merits of the company.
Business Overview
TJX operates in four business segments. Each segment's percentage of total revenue contributed to TJX in the company's most recent quarter is shown below:
The Marmaxx segment is TJX's largest by far. The segment includes Marshall's and T.J. Maxx, and Sierra Trading post sales in the US. In total, the segment counts 2092 stores (1,113 TJ Maxx stores, 973 Marshalls stores, and 6 Sierra Trading Post stores). TJX was founded in 1976 and acquired Marshalls in 1995. The company launched its e-commerce site tjmaxx.com in 2013.
The Home Goods segment operates entirely in the US (as well as the Marmaxx segment). The segment includes the operations of TJX's 485 Home Goods stores. TJX generated 75% of sales in the US in its most recent quarter (12% from Home Goods, 63% from Marmaxx).
The TJX Canada segment includes the operations of TJX's Canadian stores which are: Winners, Home Sense, and Marshalls. TJX Canada operates 234 Winners stores, 96 Home Sense Stores, and 38 Marshalls stores for a total store count of 368.
