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The retail industry is one such space that witnessed unprecedented changes in 2020. In the midst of a full-blown global pandemic, the retail sector went through an upheaval across several nations, tackling supply chain disruptions, enforcement of safety measures and many other changes.
However, one of the major highlights was the customers’ accelerated shift to online shopping. Many analysts believe that even after the pandemic, the online shopping trend will continue in the future.
On that note, let us explore these three retail stocks and see how they are performing in the new year.
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The Home Depot, Inc. (NYSE:HD)
Home improvement retailer Home Depot inaugurated a distribution center in Dallas in February 2020. The company intends to meet customers’ delivery requirements as it sees an increased number of online and store orders. The retail giant is investing $1.2 billion to grow its distribution and delivery system. With the new facility’s launch, the company will create around 1,500 new jobs by the end of 2021.
Home Depot had also announced plans to open two new distribution centers in New Jersey, bringing 400 new jobs in the tri-state area. In November 2020, Home Depot reported sales of $33.5 billion for Q3 FY20, a growth of 23.2% from the same period in FY19. Its comparable sales also improved to 24.1% for the third quarter in 2020.
Craig Menear, chairman and CEO of Home Depot said that the home improvement projects had witnessed a sharp uptick. It drove the sales growth of more than $15 billion for the first nine months of the year. The company quickly adapted to the high-demand environment and continued its focus on customers. The retailer intends to invest in the areas where there is a scope of growth.
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The TJX Companies, Inc. (NYSE:TJX)
Leading apparel and home retailer The TJX Companies announced its sales and operating results in November 2020. Net sales for the third quarter of FY2021 ended October 31, 2020, reached $10.1 billion. TJX clocked net income of $867 million with diluted earnings per share at $0.71.
For the first nine months of FY21, the company clocked net sales of $21.2 billion, reflecting the negative impact of the COVID-19 global pandemic. The American retailer’s stores were temporarily closed for approximately 27% of the first nine months.
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., hailed Q3 results, saying that the top and bottom-line results demonstrated the consumers’ preference towards TJX brand and values.
All the divisions witnessed sales above expectations; moreover, the HomeGoods generated another double-digit open-only comp-store sales in the quarter. To take advantage of the internet shopping wave, the company also launched HomeGoods.com website in 2021. Its home, beauty and activewear segments outperformed at Marmaxx, TJX Canada, and TJX International stores.
However, the retailer notes uncertainty continues because of the pandemic, even in the fourth quarter. The company offered fresh assortments at stores and online during the holiday season. TJX launched gift selections at excellent value to its customers. TJX is confident of attracting more customers and sailing through the crisis period.
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Lowe’s Companies, Inc. (NYSE:LOW)
American home improvement company Lowe’s recently hosted a virtual investor presentation to update on its long-term financial updates. The retail giant has introduced the Total Home strategy to strengthen its market share gains. Building on the strong execution of its retail fundamentals strategy, Lowe’s offers total home solutions to its customers.
The product line and services cater to every area in the home. Besides offering an array of solutions like repair, improvement and DIY options, the retail company’s strategy is also intending to enhance customer engagement with the brand. Lowe’s is also expanding its online footprint which will accelerate the business in coming years.
On its business outlook for FY2020 as communicated in December 2020, Lowe informed the market that the total sales are expected to grow about 22% in FY20 compared to FY19. Comparable sales also expected to rise by around 23%.
Interestingly, to capture the mood of the season, Lowe’s has launched a unique campaign for Valentine’s Day wherein fifty select couples will get a chance to indulge in a splash-painting date night.
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