TJX raises full-year profit forecast after beating quarterly estimates

(Reuters) - TJX Cos Inc TJX.N raised its full-year profit forecast on Tuesday ahead of the holiday shopping season and reported better-than-expected quarterly same-store sales as the off-price retailer's steep discounts brought in more shoppers.

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

TJX, which draws in price-conscious shoppers with the promise of sought-after and luxury brands like Dolce & Gabbana and Calvin Klein at discounts of up to 60%, has been steadily expanding with a program of new store openings and remodeling of existing ones.

The company now expects full-year profit of $2.61 to $2.63 per share, compared with its prior forecast of $2.56 to $2.61.

“The fourth quarter is off to a solid start and we have many initiatives underway to keep driving traffic and sales to our stores and online during the holiday season and beyond,” Chief Executive Ernie Herrman said in a statement.

The company reported a 4% rise in comparable-store sales for the third quarter, beating the average analyst estimate of a 2.30% rise, according to IBES data from Refinitiv.

TJX now expects comparable store sales growth of 3% on a consolidated basis, compared with its prior outlook of 2% to 3% growth.

Same-store sales at Marmaxx, TJX’s biggest unit that houses T.J. Maxx and Marshalls stores, rose 4%, also beating estimates of a 2.31% rise.

TJX’s net income rose to $828.3 million, or 68 cents per share, in the quarter ended Nov. 2, from $762.3 million, or 61 cents per share, a year earlier.

Net sales rose to $10.45 billion from $9.83 billion.

Analysts on average had expected a profit of 66 cents per share on net sales of $10.32 billion.

Shares of the Framingham, Massachusetts-based company rose 1.4% before the opening bell.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel