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TJX shares fall after earnings beat, with growth guidance clouded
The company reported $1.22 per share and $15.2 billion in quarterly sales, but its biggest division, Marmaxx, underperformed, and it guided for slower Q3 growth.
TJX Companies shares slid in early trading after the discount retailer posted an earnings beat, dropping 6% before trimming losses to a 1.3% decline by 10:15 a.m. ET, according to Yahoo Finance. The move came even as investors initially focused on the company’s results.
TJX earned $1.22 per share versus analysts’ $1.19 estimate, while sales were roughly in line with expectations at $15.2 billion for the quarter. Same-store sales grew faster than expected, with same-store sales rising 4%, while overall sales increased 5% year over year. Non-GAAP earnings were up 11% year over year.
On the earnings line, GAAP profits jumped 24% to $1.36 per share, a figure that included a large refund of tariffs previously collected by the Trump administration. Management said almost all of TJX’s brands grew faster than expected, but Marmaxx, the company’s largest division that includes T.J. Maxx and Marshalls, underperformed.
Looking ahead, TJX forecast that same-store sales growth might average only 2% to 3% in Q3. For the full year, the company still expects 3% to 4% comp growth, plus additional growth from new store openings, and it projected GAAP profits of about $1.37 per share in Q3 and roughly $5.33 for the year, both including tariff refund windfalls that it said will not repeat.