The top two off-price retailers have a unique ability to shrug off the headwinds that often undermine their rivals' results.
News & Analysis: Ross Stores
The off-price retailer delivered good results despite a merchandising error.
ROST earnings call for the period ending February 2, 2019.
Christmas wasn't kind to department stores, but the two biggest off-price retailers in the U.S. probably had another successful holiday season.
The off-price retailer spooked investors by issuing a modest outlook for the holiday quarter.
Both retailers continue to deliver strong sales growth, but TJX posted especially impressive results last quarter.
ROST earnings call for the period ending October 31, 2018.
Comp sales growth accelerated, and year-over-year EPS growth remained well above 20% at Ross Stores last quarter. But some investors were expecting even better things.
Strong U.S. retail sales over the past three months -- particularly for apparel -- is likely to have allowed the two top off-price retailers to beat their forecasts by an even wider margin than usual last quarter.
Shares of the two largest off-price retailers have hit new all-time highs this week, but they could continue rising.