TJX Shares Drop After Lowering Its Profit Guidance for Key Holiday Quarter

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published November 15, 2023
T.J. Maxx store

Joe Raedle / Staff / Getty Images

Key Takeaways

  • TJX lowered its guidance for the holiday quarter, and shares of the discount retailer dropped.
  • Third quarter earnings and revenue exceeded forecasts, boosted by a jump in comparable store sales, especially at Marmaxx and HomeGoods stores.
  • TJX indicated that the comparable store sales increase was entirely the result of consumer traffic.

TJX (TJX) shares fell over 3% Wednesday after the "off-price" retailer lowered its profit guidance and missed estimates for the key holiday shopping period.

The operator of T.J. Maxx, Marshalls, and other stores said it expects that current quarter earnings per share (EPS) will be between $0.97 and $1, down from its previous outlook of $1 to $1.03. Analysts had been looking for $1.13.

The company explained that the reduced quarterly profit forecast related to the timing of expenses. TJX raised its full-year EPS forecast to a range of $3.61 to $3.64 from its prior guidance of $3.56 to $3.62, although that also was short of expectations.

The changes in forward outlook came as the company reported better-than-expected third quarter fiscal 2024 results, with EPS of $1.03 and revenue increasing 9% from a year ago to $13.3 billion. Comparable store sales were up 6%, which TJX explained was entirely because of customer traffic.

CEO Ernie Herrman noted that he was especially pleased with the gains in comparable store sales at the firm's Marmaxx and HomeGoods stores, which were up 7% and 9%, respectively. He added that overall apparel sales remained strong, and home goods sales accelerated from the previous quarter. Herrman also said that the fourth quarter was "off to a strong start."

Although TJX shares lost ground Wednesday, they remained in positive territory for the year.

TJX

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  1. TJX. "The TJX Companies, Inc. Reports Above Plan Q3 FY24 Comp Store Sales Growth of 6%, Pretax Profit Margin of 12.0%, and Diluted Earnings Per Share of $1.03; Increases FY24 Comp Store Sales and Earnings Per Share Guidance."

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