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Shares of TJX Companies (NYSE:TJX) are down by almost 1.5% after the company cut its full-year profit forecast.
TJX reported Q2 EPS of $0.69 to narrowly beat the analyst estimate of $0.67. Revenue for the quarter came in at $11.8 billion, lower than the consensus estimate of $12.09 billion.
For FY2023, TJX slashed its adjusted EPS outlook to a range of $3.05 to $3.13 from $3.13 to $3.20.
“As to the top-line, U.S. comp sales for the second quarter came in lighter than we expected as we believe historically high inflation impacted consumer discretionary spending,” TJX said in a statement.
A BMO analyst said the company is experiencing “generally weaker Q3”.
“Recognizing current macro and higher inventory, we believe TJX represents a long-term share-taker becoming more important, not only to its customers, but increasingly to brands,” the analyst said in a client note.
A Goldman Sachs analyst added that investors were expecting a full-year guidance reduction.
“We are encouraged by the strong profit margin delivery in F2Q and TJX’s outlook for continued improvement in pretax profit margins, which are now guided closer to double digits. That said, we believe the magnitude of the US comp miss in F2Q and the reduction to full year US comp guidance was larger than feared,” the analyst wrote to clients.
