Burlington, TJX, Ross Stores Seen as 'Relative Winners' as Inflation Swirls, BofA Says

MT Newswires Live10-19

Burlington Stores (BURL), TJX (TJX) and Ross Stores (ROST) are seen as "relative winners" as customers seek value amid higher inflation, with comparable sales expected to remain strong in H2, BofA Securities said Monday in a report.

The athletic segment will continue to struggle as a lack of innovation pushes customers toward other apparel categories, with Amer Sports (AS) benefiting from its more robust product development, the report said.

The beauty segment is expected to outperform apparel, with Ulta Beauty (ULTA) on track to become a steady double-digit EPS compounder, the report said.

Spending has remained steady across income categories, though concerns persist that rising oil prices will fuel broader inflation and limit discretionary income, particularly among lower-income households, the report said.

Following back-to-school season, BofA expects spending to pick up again in October as colder weather drives initial fall purchases, followed by a slowdown until the holiday season.

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