T.J. Maxx owner lowers profit forecast as consumers cut spending
2022.08.17 15:02
FILE PHOTO: A T.J. Maxx store which is owned by TJX Cos Inc in Pasadena, California U.S., May 15, 2017. REUTERS/Mario Anzuoni/File Photo
(Reuters) – Discount store operator TJX (NYSE:TJX) Cos Inc trimmed its forecast for annual earnings on Wednesday, as red-hot inflation forces Americans with lower incomes to cut discretionary spending.
In the wake of decades-high inflation, cash-strapped Americans are prioritizing spending on groceries and other essentials.
Analysts have also said lack of stimulus benefits as was the case last year will hit discretionary spending, particularly hurting retailers with greater low-income exposure such as TJX and peers Burlington Stores (NYSE:BURL) and Ross Stores (NASDAQ:ROST).
The company expects adjusted per-share earnings of $3.05 to $3.13 in fiscal 2023, compared with its prior forecast of $3.13 to $3.20.
Net sales at the T.J. Maxx parent fell to $11.8 billion in the second quarter from $12.08 billion a year earlier. Analysts had estimated sales of $12.05 billion, according to Refinitiv IBES data.
