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TJX Names Ernie Herrman as its New CEO; Stock Rises

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Leading off-price retailer The TJX Companies, Inc. 's TJX saw its shares rise almost 1.0% in the last trading session. The upside came on the company's announcement that its Board has approved its CEO succession plan.

On Oct 7, TJX has named Mr. Ernie Herrman, who has been serving as the company's President since Jan 2011, as its new CEO. The transition will be effective from Jan 31, 2016, when the company starts its next fiscal year. He will continue to be the president and the company has added him as a director effective immediatelly

Mr. Ernie Herrman has had a rich and illustrious career in TJX, since his association with the company in 1989. In Aug 2008, he was named Senior Executive Vice President and Group President with responsibilities for The Marmaxx Group, HomeGoods and TJX Canada.

Earlier, he served as the President of The Marmaxx Group from Jan 2005 to Aug 2008. Mr. Herrman has also held various senior merchandising positions in TJX. Moreover, Mr. Herrman had significant contribution behind the company's expansion into continental Europe. He was also responsible for developments like bringing Marshalls to Canada and the deal inked to acquire Trade Secret in Australia. We believe that the off-price retailer will thrive under his leadership.

Ernie Herrman will replace Carol Meyrowitz, the current Chairman and CEO of the company. The 61 year old veteran will become the Executive Chairman of the Board following the CEO transition. In her role as the Executive Chairman, Ms. Meyrowitz will remain an active executive and an integral part of TJX's executive management team. She will also advise Mr. Herrman on the company's long-term growth initiatives and strategy.

Ms. Meyrowitz, who has held the office since Jan 2007, has extensive experience as an off-price retail executive. She joined TJX in 1983 and has served in a number of positions such as the Senior Executive Vice President of TJX, President of The Marmaxx Group, Director of TJX as well as the President of the company since.

We believe that TJX will continue to flourish under such leadership. On Aug 18, TJX reported decent second-quarter 2015 earnings and revenues driven by solid comps growth.

Additionally, TJX has inked an agreement to takeover Trade Secret for approximately $58.5 million. This marks another attempt by the company to expand its presence internationally. Trade Secret sells branded apparel for women, men and children, as well as footwear, accessories and home fashions. The buyout, which is scheduled to close in 2015, will help TJX to enter Australia and explore strategic opportunities in the continent.

TJX currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the apparel industry are Big Lots Inc. BIG , Burlington Stores Inc. BURL and Target Corporation TGT . All the three stocks have a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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