Off-price retailers are poised to outperform, and Ross Stores will be the leader, according to Credit Suisse. The firm just moved the stock to its top pick in this retail sector. While many retailers are grappling with a glut in inventory, high inflation and a potential recession, earnings reports from both Ross Stores and TJX Companies show the companies' resilience . The off-price space benefits from excess inventory in the system.
Credit Suisse expects Ross Stores has the most potential upside, including the fact that its three-year same-store-sales growth acceleration in the third quarter was better than TJX's Marmaxx division. Ross Store's 2022 EBIT margins guided nearly 300 basis points below 2019 levels, compared with 70 basis points by TJX, analyst Michael Binetti wrote in a note Thursday.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »