Yahoo Finance The TJX Companies (TJX) Partners With Axo for Mexico Expansion
The TJX Companies, Inc. TJX unveiled plans for a joint venture in Mexico with Grupo Axo, S.A.P.I. de C.V. ("Axo"). Notably, Axo operates global brands in Mexico and South America across various retail formats, encompassing full-price and discounted offerings.
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Per the agreement, TJX will hold a 49% stake, while Axo will have a 51% stake in the joint venture. The collaboration will incorporate Axo's existing off-price, brick-and-mortar retail operations in Mexico, encompassing more than 200 stores under its Promoda, Reduced and Urban Store brands. The envisioned transaction is slated to be completed toward the end of 2024.
The TJX Companies is keen on extending its presence into Mexico through the partnership with Axo, aiming to amplify and refine its performance. Drawing upon TJX's extensive experience as a global off-price retailer, coupled with Axo's established network of more than 200 off-price stores and three decades of operational expertise in Mexico, management envisions significant potential for growth in this new region.
This leading off-price apparel and home fashion retailer anticipates delivering a compelling value proposition to the expanding demographic of fashion-forward and value-conscious consumers in Mexico.
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What Else Should You Know?
The TJX Companies began the fiscal 2025 on a strong note, with its focus on offering consumers attractive deals on popular brands and fashions. TJX delivered an impressive performance in the recently released first-quarter fiscal 2025 results, with the top and the bottom line increasing year over year and earnings surpassing the Zacks Consensus Estimate. It witnessed comp sales growth across all segments, completely due to customer transactions, highlighting its solid value proposition. This performance bolsters management’s confidence in the ability to capture market share across all regions. The company began the second quarter on a positive note, foreseeing several business opportunities for the remainder of the year.
Shares of this Zacks Rank #3 (Hold) company have increased 11.4% in the past three months compared with the industry’s growth of 7.3%.
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