Shares of TJX, the parent company of TJ Maxx and HomeGoods, experienced a dip in value after the off-price retailer reported impressive third-quarter earnings but disclosed a profit forecast that fell short of expectations.
Strong Financial Performance
In the fiscal third quarter, TJX posted earnings of $1.03 per share, surpassing the consensus estimate of 99 cents among FactSet-analyzed analysts. This figure also marked an increase from the 91 cents per share earned in the same quarter last year. Moreover, the company’s sales reached $13.27 billion, exceeding expectations of $13.09 billion. Additionally, comparable-store sales saw a significant surge of 6%.
Mixed Outlook for Q4
Looking ahead to the fourth fiscal quarter, TJX management projects an overall increase in comparable-store sales by 3% to 4%, with expected earnings falling in the range of $1.07 to $1.10 per share. However, analysts had anticipated higher comparable-store sales growth of 3.5% and per-share earnings of $1.12. Despite this, the company raised its financial guidance for the fiscal year ending on February 3, 2024.
Holiday Shopping Season
President and CEO Ernie Herrman expressed confidence in TJX’s positioning as a popular shopping destination for gifts during the upcoming holiday season. Herrman highlighted the company’s values and emphasized their commitment to consistently delivering fresh merchandise to both physical stores and online platforms throughout the season.
Decreased Stock Value
Following these announcements, TJX shares experienced a 2.2% decline in premarket trading, settling at $90.46. This comes as a surprise to some, considering that TJX was a stock pick earlier this year.
TechBerry
Happy Galaxy
Forex Cyborg
Forex Fury
FXgoodway