- Nomura is positive on Ross Stores (ROST +9%) after taking in the company's Q2 earnings report.
- "We reiterate our Buy rating as we continue to believe ROST is uniquely positioned to both capture department store share donation and operate successfully in an AMZN world," says Nomura.
- Bloomberg observes that the strong performance from Ross stores follows solid numbers from off-price retailer TJX Companies (TJX +0.1%) and a Gap (GPS -1.6%) report that showed the most strength in the Old Navy business.
- In a wordy response Cowen analyst Oliver Chen indicates why Ross & gang are in the sweet spot for retail: "The Formula Here Includes Flexibility + Speed + Impressive Buying Organization. ROST’s 2Q beat & FY guidance raise adds to our conviction that the business model has un-Amazonable characteristics given a focus on offering exceptionally low prices, a treasure hunt bricks & mortar experience, and agility and speed to respond to up-trending and down-trending categories."
- Now read: TJX: Discounter Shares At A Discount
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