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Marshalls and Home Goods store entrance in Miami, Florida.
Jeff Greenberg | Universal Images Group | Getty Images
TJX Companies Apple Inc. raised its full-year outlook on Wednesday after posting another quarter of strong sales, but its forecast remains slightly below Wall Street expectations.
The company behind Marshalls, HomeGoods and TJ Maxx now expects full-year earnings of between $4.09 and $4.13, compared with estimates of $4.14, according to LSEG.
For the current quarter, TJX expects earnings per share to be in the range of $1.06 to $1.08, compared to estimates of $1.10.
Shares rose about 3% in premarket trading.
Here's how the company performed compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:
- Earnings per share: 96 cents For an expected 92 cents.
- profit: $13.47 billion vs. $13.31 billion expected
The company reported net income for the three-month period ended Aug. 3 of $1.1 billion, or 96 cents per share, compared with $989 million, or 85 cents per share, a year earlier.
Sales rose to $13.47 billion, compared to $12.76 billion the previous year.
Over the course of TJX's fiscal 2024, which ended in February, the company posted strong sales gains and strong guidance, but investors were keen to see how it would beat those numbers in the coming quarters and whether it could continue to grow.
The company sees overseas as a key growth avenue, announcing on Wednesday that it had acquired a 35% stake in Dubai-based retailer Brands for Less for $360 million. The privately held brand is the region’s only major discounter and operates more than 100 stores, primarily in the UAE and Saudi Arabia, alongside an e-commerce business.
“As TJX seeks to continue its global growth, this transaction provides the company with an opportunity to invest in an established, discount retailer with significant growth potential,” TJX said in a press release. “The company’s ownership in BFL is expected to result in a modest increase in earnings per share beginning in fiscal 2026.”
By Tuesday’s close, TJX stock was up about 21% year-to-date. Shares hit a new high in May after the company reported strong quarterly earnings.
The retailer has captured market share from competitors such as goal and Maisie It has become a haven for price-sensitive consumers who may be watching their dollars but still want to buy new clothes.
Some analysts say the nature of TJX's business model means it performs well in any economic environment, but if there is a sharp decline in consumer spending, it could spell trouble for the company.
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