* Lowers top-end of profit outlook to $3.17/share from $3.19
* First-quarter earnings $0.64/share vs est. $0.67
* Sales $6.49 bln vs est. $6.60 bln
* Shares fall as much as 7.5 pct
(Adds full-year forecast, background, shares)
May 20 TJX Cos Inc, the owner of
off-price chains TJ Maxx and Marshalls, cut the top-end of its
full-year earnings outlook after reporting lower-than-expected
comparable store sales due to weak demand for apparel.
Shares of TJX fell as much as 7.5 percent in late morning
The off-price retailer sells apparel and home furnishings
that are priced 20-60 percent lower than those of departmental
store operators. This has been a big draw for price-conscious
consumers struggling in a weak job market and
has helped the company take market share from department store
But a pullback in consumer spending and an increasing shift
towards spending on electronics has seen apparel take a backseat
on shopping lists.
Teen apparel retailer Urban Outfitters Inc on
Monday reported a lower-than-expected quarterly profit.
TJX, which runs more than 3,250 stores, reported a 1 percent
rise in same-store sales in the first quarter ended May 3.
Analysts on average had expected growth of 2.6 percent,
according to Thomson Reuters I/B/E/S.
"... Sales were not as strong as we would have liked,
predominantly in our apparel business ...," Chief Executive
Carol Meyrowitz said in a statement.
TJX lowered the top-end of its full-year earnings outlook to
$3.17 per share from $3.19. The low-end of the forecast remained
unchanged at $3.05.
Analysts were expecting a profit of $3.19 per share.
TJX's net sales rose 4.9 percent to $6.49 billion in the
first quarter, but fell short of the average analyst estimate of
Net income climbed to $454.3 million, or 64 cents per share,
from $452.9 million, or 62 cents per share, a year earlier.
Analysts had expected a profit of 67 cents per share.
U.S.-based TJX, which also operates in Canada, the UK,
Ireland, Germany and Poland, said the profit was hurt due to
foreign currency exchange rates.
TJX's shares, which have risen about 14 percent in the last
year, were down 6.6 percent at $54.53. They touched a low of
(Reporting by Shailaja Sharma in Bangalore; Editing by Savio
D'Souza and Maju Samuel)