Salem Radio Network News Saturday, October 1, 2022

Business

T.J. Maxx parent sees upbeat annual profit aided by price increases

(Reuters) -Discount store operator TJX Cos Inc on Wednesday forecast annual profit above Wall Street estimates and posted upbeat quarterly earnings, as price increases help the T.J. Maxx parent counter a hit from rising costs.

Shares in the company, which is also known for its Marshalls and HomeGoods store chains, rose more than 4% before the bell even as the broader market declined.

Costs across the retail industry have been surging through the pandemic due to supply-chain snarls, production issues and worker shortages, forcing companies from big-box players such as Walmart to off-price retailers such as TJX to protect margins by raising prices.

TJX said it expects fiscal 2023 adjusted per-share profit between $3.13 and $3.20, above Refinitiv estimates of $3.15, even as it trimmed its annual U.S. sales forecast.

Walmart, however, lowered its annual profit forecast on Tuesday while rival Target Corp flagged a bigger hit to margins earlier on Wednesday, both reporting a slump in quarterly profits.

TJX expects U.S. same-store sales growth to be at 1% to 2% for the full year, down from its earlier outlook of a 3% to 4% rise, adding on to concerns that demand for apparel and discretionary goods might be easing amid inflation.

Net sales rose to $11.41 billion in the first quarter from $10.09 billion a year earlier, compared with analysts’ average estimate of $11.59 billion, as U.S. same-store sales at its HomeGoods division fell 7% after surging through much of the pandemic.

Excluding items, TJX earned 68 cents per share in the quarter ended April 30, topping market estimates of 60 cents.

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

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