Then here's is how it works out .......
Retail workers now hear there is a wage hike at TJX
(workers at TGT, KSS, CVS, WGRN, JCP, DG, DTR, Sears etc will take note)
Those existing TJX workers who increase their productivity consummate with their wage
increases, will be promoted and receive additional wage hikes...."success stories"'..!
.......while those TJX workers who are not motivated by added wages will be removed and
workers from other retailers will be employed and given their chance to make more wages
and be more productive.......
An extra $ 400 per month can make a difference for retail workers now earning $ 7.50/hr.
By increasing their employees wage rate, TJX is seeking out the better portions of all
retailer's work force. Go to your local mall and see if TJX can attract the top 25 %
of workers you see working.......TJX is not simply giving away money to their current
employees.......they are attempting to expand their reach of better potential employees
that are currently working elsewhere.
If workers, in aggregate, don't respond to higher wages, as you fear, then its TJX mgmt
at the store level's fault. All retail stores, despite what consumers see on a daily basis,
need to be actively managed.
Yeah that's the way you would expect it to work but I honestly don't see the average worker working harder because they're getting more money. Maybe some, for a time will, but overall with today's workforce unfortunately "appreciation" is not in their vocabulary. I really hope you are right and I am wrong but we will see.
Sentiment: Strong Buy
ROST better than TJX
ROST has zero European mess to contend with ....so easier/larger profits in 2015
Investor read the killer earnings numbers out of ROST last night and IMO they will shift their capital
over to a competing firm that goes as well as TJX in the USA, but goes not have the poor European
market segment to hold back results......
ROST posted great revenues and EPS results, they hiked the dividend 18 % and sandbagged on
the 2015 guidance........
As long as the EU is a dump in 2015" ROST over TJX is a no brainier .........ROST has 1500 US
stores and plans to have 2500 in the future...that's a 66% growth prospect there alone....!
I will add to ROST in 2015 but not TJX.....until Myerowitz fixes the EU mess.
I would like 90, but in what sort of time frame are you seeing?
Direction & Funnycap ......
I doubt CNBC has as much impact as Direction implies ......
IMO, I am thinking that the "Euro vs US dollar Fx" relationship might be closer to being
played out than the Euro going to parity, as many thought on Jan 1, 2015 .......maybe
the Euro stabilizes for the rest of Q1 & Q2 2015. That would help TJX earnings from
its EU segment. This is just one of my possible forecasts for 2015 for TJX.....
As Funnycap says, the capital return should help the stock price going forward, but I
doubt it helped with the massive reversal today......
I hope all those TJX employees who are going to be given a 'free" pay rise realize that
there will be increased expectations for them and their mgers....there still is no free lunch
in life. No problem to me giving the pay hikes, those employees need to know they must
improve the store experience for TJX customers...!!
TJX = best of breed retailer + increased future EBITDA + cheap cost of capital = increase
stock price ......no real mystery here
Watch for ROST to pop on Friday too.....
hi there, its a fair statement but its actualy inexpensive to the whole market...increasing the dividend and share buyback helps as well....its going higher...my view depending on the CAD and GBP..they are just being cautious if you look at cable since the end of the quarter its actually now then it was at the end of the quarter...so if this coninues their earnings may be higher which may provide a upside suprise. i have a price target at this point of 90
Sentiment: Strong Buy
Why did a stock that reported and went down change direction and go up? And go to a 52 week high? Because of the slippery CNBC pump and the analysts' pump. Must be nice to get money handed to you to report what they want. This stock is way over-priced, and its earnings far more justify it.
I think its a good deal for TJX shareholders for TJX to decide to pay $ 10 to workers ....
If TJX pays more $ per hour ........they should be able to recruit better quality workers
.....and better quality workers should be expected to be more productive workers
....and TJX should realize better profits from better/more productive workers.
TJX mgmt should have a plan for leveraging this wage hike with they expect to implement
these new programs for increased worker productivity.....
.......if TJX has no plan for its workers & is just giving money away, then mgmt changes
need to made at TJX...!
If you can't manage it ....don't enter it
That's my feeling on TJX having a European business.....
The Euro vs the US dollar always move around...so TJX financial results will increasingly
be at the mercy of the Fx markets......
Either someone is making excuses ...or someone made a huge strategic mistake....!
Take your pick ......ROST should indeed beat on guidance
Why did TJX enter something they can not manage....????
2014 was good as expected ......KISS for those at TJX mgmt.
Looks like the unfavorable foreign currency rates are putting a hurt on their guidance. Won't be an issue for ROST though:
Full Year and First Quarter Fiscal 2016 Outlook
For the fiscal year ending January 30, 2016, the Company expects diluted earnings per share to be in the range of $3.17 to $3.25 versus $3.15 in Fiscal 2015. Excluding the $.01 debt extinguishment charge in Fiscal 2015 referred to above, this guidance would represent a 0% to 3% increase over the adjusted $3.16 in Fiscal 2015. This guidance reflects an assumption that currency could have a 5% negative impact on EPS growth, including 3% due to the impact of the dramatic change in foreign currency exchange rates on translation and mark-to-market adjustments (described above) and 2% from the effect of currency on merchandise margins at the Company’s international divisions. The Company is also assuming that the combination of its investments in Associates, incremental investments to support its growth, and pension costs will negatively impact EPS growth by an additional 4%. This EPS outlook is based upon estimated consolidated comparable store sales growth of 1% to 2%, consistent with the Company’s plans in prior years. Again, the Company is reiterating its 10% to 13% long-term annual EPS growth model.
For the first quarter of Fiscal 2016, the Company expects diluted earnings per share to be in the range of $.64 to $.66, which would represent a 0% to 3% increase over last year’s $.64 per share. This guidance reflects an assumption that currency could have a 4% negative impact on EPS growth, including 3% due to the impact of the dramatic change in foreign currency exchange rates on translation and mark-to-market adjustments (described above) and 1% from the effect of currency on merchandise margins at the Company’s international divisions. The Company also expects the combination of incremental investments to support its growth, employee payroll and pension costs to negatively impact EPS growth