Yahoo Finance·2026-01-28 14:50Industry Overview - Consumers are cautious due to economic challenges such as high inflation and a potentially weakening job market, leading to reduced spending [1] - The S&P 500 consumer discretionary sector has returned 4.8% over the past year, significantly lower than the S&P 500's overall return of 15.1% [1] Nike - Nike has historically been a dominant player in the sportswear market, with approximately 65% of its sales coming from footwear [4] - Recent sales have been declining due to increased competition, lack of innovative products, and a strategic shift to direct-to-consumer sales, which has impacted relationships with wholesale partners [5] - In the fiscal third quarter, Nike's sales growth was stagnant after adjusting for foreign-currency effects, with wholesale revenue increasing by 8% but direct revenue declining by 9% [6] TJX Companies - TJX Companies operates an off-price retail business under brands like TJ Maxx and Marshalls, capitalizing on purchasing excess inventory at attractive prices [7] - The company has benefited from economic conditions that allow it to source a wider selection of discounted goods, particularly during challenging times [8] - In the fiscal third quarter, TJX reported a 5% increase in same-store sales, achieving positive comps across all its business segments [8]