With higher interest rates and sticky inflation undercutting the purchasing power of most consumers, value retailers are holding up against a broader spending pullback as anxiety over the economy prompts shoppers to seek discounts and deals. Many of the off-price retailers, such as TJX Cos (TJX), Ross Stores (ROST), and Burlington Stores (BURL), are set to post higher sales in the upcoming Q3 earnings reports. That contrasts with high-end luxury names such as LVMH Moet Hennessy Louis Vuitton and Tapestry Inc.
Discount retailers are on track to report strong quarterly earnings results as cost-conscious consumers continue to lend momentum to the year-long sales recovery. Ross Stores and TJX Cos, owner of T.J. Max and Marshalls, are on track for their first double-digit sales growth in seven quarters for the October-through-December period. Also, Burlington Stores is expected to post double-digit sales growth in two consecutive quarters starting in Q3.
