This Fast-Growing Retailer Is Outperforming Peers: Here's Why
Off-price retailers have grown their sales rapidly over the past decade, steadily gaining market share from pricier department stores and specialty stores. Nevertheless, they reported some of the retail industry's sharpest sales declines during the first half of fiscal 2020. After all, they do little or no e-commerce business, and their stores were forced to close during the spring due to coronavirus-related restrictions.
However, off-price retailers mounted a huge comeback last quarter, led by Ross Stores (NASDAQ: ROST). Let's take a look at the simple reason why Ross is outperforming industry leader TJX Companies (NYSE: TJX) and smaller rival Burlington Stores (NYSE: BURL) right now.
In the fiscal second quarter, Ross Stores' sales plunged by nearly a third. Yet this result wasn't as bad as it seemed. All of the company's stores were closed at the beginning of the quarter, and some didn't reopen until halfway through the period (or even later, in a few cases).
Source Fool.com
