Despite the closure of department stores and other apparel, footwear and home goods retailers, off-price's dominance may be waning, according to a note from UBS analysts emailed to Retail Dive this week. "The market views Off-Price as defensive and internet-proof," according to the UBS team lead by Jay Sole. "We think [earnings per share] will eventually fall short of market expectations."
The store count in the segment fell 6.2% year over year, "the highest rate in at least ten years," according to the report. "Yet, the consensus forecasts Off-Price EBIT dollars ([TJX Cos, Ross Stores, and Burlington]) to rise only 3.5% this year vs. its 7% 5-year average increase," UBS wrote.. . . more