(Reuters) - TJX Cos Inc raised its full-year profit forecast and beat quarterly same-store sales estimates on Tuesday, as the off-price retailer’s steep discounts attracted more shoppers.
TJX, which sells coveted apparel brands such as Tommy Hilfiger and Calvin Klein at prices 20% to 60% lower than those sold at other retailers, has been opening new shops while attracting customers with its “treasure hunt” store formats.
The company also hinted at easing transportation and labor cost pressures by forecasting a 3% to 4% impact to full-year profit, compared to the about 4% it forecast earlier.
TJX raised its full-year earnings per share profit forecast range by a cent to $2.56 to $2.61.
Comparable-store sales rose 5% in the first quarter ended May 4, beating the average analyst estimate of a 3.44% increase, according to IBES data from Refinitiv.
Net income rose by a cent to 57 cents per share, ahead of estimates of 55 cents.
Net sales climbed 6.8% to $9.28 billion, also topping expectations of $9.21 billion.
Shares of the company rose 1.8% before the bell.
Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila