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Shares in the company, which is also known for its Marshalls and HomeGoods store chains, rose more than 4% before the bell even as the broader market declined.
Costs across the retail industry have been surging through the pandemic due to supply-chain snarls, production issues and worker shortages, forcing companies from big-box players such as Walmart (NYSE:WMT) to off-price retailers such as TJX to protect margins by raising prices.
TJX said it expects fiscal 2023 adjusted per-share profit between $3.13 and $3.20, above Refinitiv estimates of $3.15, even as it trimmed its annual U.S. sales forecast.
Walmart, however, lowered its annual profit forecast on Tuesday while rival Target Corp (NYSE:TGT) flagged a bigger hit to margins earlier on Wednesday, both reporting a slump in quarterly profits.
TJX expects U.S. same-store sales growth to be at 1% to 2% for the full year, down from its earlier outlook of a 3% to 4% rise, adding on to concerns that demand for apparel and discretionary goods might be easing amid inflation.
Net sales rose to $11.41 billion in the first quarter from $10.09 billion a year earlier, compared with analysts’ average estimate of $11.59 billion, as U.S. same-store sales at its HomeGoods division fell 7% after surging through much of the pandemic.
Excluding items, TJX earned 68 cents per share in the quarter ended April 30, topping market estimates of 60 cents.
