TJX Companies Inc (NYSE:TJX) early Tuesday posted mixed third quarter earnings results amid unexpectedly weak sales at established stores, sending its shares lower in premarket trading.
The Framingham, MA-based off-price retailer reported Q3 earnings per share (EPS) of $1.00, which was in-line with the Wall Street consensus estimate of $1.00.
Revenues rose 5.7% from last year to $8.76 billion, falling short of analysts’ view for $8.86 billion.
On another sour note, comparable store sales (comps) were flat in the latest quarter, missing TJX’s own guidance for 1% to 2% growth, and well below the 5% increase seen in the year-ago period.
Looking ahead, TJX forecast Q4 EPS of $1.25 to $1.27, in-line with Wall Street’s view of $1.27. It also sees comps rising 1% to 2%.
The company commented via press release:
“Certainly, the hurricanes had a negative impact during the quarter… Additionally, we believe that warmer temperatures in the U.S. during the quarter dampened demand for apparel at our Marmaxx division. While sales were not as strong as we would have liked, we were pleased that sales trends at Marmaxx improved as the weather turned more seasonable. Further, customer traffic, or transactions, were strong and up at every major division. Importantly, our consolidated merchandise margin increased, which we believe speaks to the flexibility of our off-price business model. Overall, our organization sharply executed our off-price fundamentals of opportunistic buying, lean inventory discipline, and being strategic and targeted in the flow of merchandise to our stores, which helped drive margins.”
TJX Companies Inc shares fell $3.66 (-5.17%) in premarket trading Tuesday. Year-to-date, TJX has declined -2.91%, versus a 17.01% rise in the benchmark S&P 500 index during the same period.