Marmaxx slowdown stokes consumer demand concerns
TJX•TJX•TJX•TJX•TJX Companies on Wednesday reported a slowdown at its TJ Maxx and Marshalls discount apparel chains in the second quarter, dwarfing a quarterly beat and stoking concerns about weakening U.S. consumer demand.
buy, PT: $180) says the Marmaxx chain's weak quarter stems from merchandising and inventory allocation mistakes rather than soft demand, and expects it to recover as those issues are fixed.outperform) says weak Marmaxx comp sales and softer Q3 guidance increased slowing-growth concerns, though TJX could find support once investors gain greater clarity on expected downward earnings revisions.buy, PT: $190) says Marmaxx's underperformance appears correctable and is already improving, while strength across HomeGoods and international operations highlights the benefits of TJX's diversified business.
