Salem Radio Network News Friday, August 19, 2022

Business

T.J. Maxx parent cuts U.S. sales forecast as inflation hits spending

(Reuters) – Discount store operator TJX Cos Inc on Wednesday cut its full-year sales forecast after missing first-quarter revenue estimates, as demand for apparel and discretionary goods showed signs of easing amid rising inflation.

Shares in the company, which is known for its Marshalls and T.J. Maxx store chains, fell about 2% in premarket trading.

The downward revision from the off-price retailer comes as consumers across the United States feel the pinch from higher gas and food prices and cut back spending on discretionary items such as clothing and home goods.

Big-box retailer Walmart on Tuesday also noted consumer spending “shifted somewhat away” from more discretionary items including apparel and furniture.

The company now expects U.S. same-store sales growth to be at 1% to 2% for the full year, compared with its earlier outlook of a 3% to 4% rise.

Net sales at the HomeGoods parent rose to $11.41 billion in the first quarter from $10.09 billion a year earlier. Analysts had estimated sales of $11.59 billion, according to Refinitiv IBES data.

(Reporting by Deborah Sophia in Bengaluru; Editing by Vinay Dwivedi)

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