TJX Cos., the owners of Marshalls and TJ Maxx, the off price chains, has announced it raised its comparable sales and profit forecast, for the full year after being encouraged by more shoppers hungry for bargains and visiting their stores.
Shares at the company, which reported sales and profit for the quarter that were better than had been expected, rose by 4.3% during Tuesday’s premarket trading.
TJX sells home furnishings and clothes that have prices between 20% and 60% less than those at traditional department stores and retailers. The strategy has attracted many customers who are price conscious and has helped the business gain more market share.
TJX has raised its profit forecast for the full year to between $3.21 and $3.27 a share on a currency basis that is constant from its previous forecast of between $3.17 and $3.25 a share.
Analysts were expecting a profit for the full year of $32.9 a share. Comparable sales for the full year are expected to now grow between 2% and 3% up from its prior forecasted growth of between 1% and 2%, said the company in its earnings report.
Comparable sales were up 5% during its first three months of the fiscal year through May 2, which was more than the increase analysts had expected of 3.1%.
Net income at TJX was up during the quarter to $474.5 million equal to 69 cents a share during the first three months of the current fiscal year, from last year’s same quarter of $454.3 million equal to 64 cents a share.
Analysts had been expecting profit for the first quarter to be 66 cents a share.
Revenue ended the month up 5.8% finishing at $6.87 billion, which was more than analysts had been expecting of $6.79 billion.