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TJX Cos. stock was down 2.6% in premarket trading on Wednesday after the retailer issued fourth-quarter guidance below analyst estimates, even as its third-quarter profit beat expectations.
TJX
TJX,
said its third-quarter net income rose to $1.19 billion, or $1.03 a share, from $1.06 billion, or 91 cents a share, in the year-ago quarter.
TJX’s adjusted third-quarter earnings of $1.03 a share beat the FactSet consensus estimate of 99 cents a share and exceeded the company’s expectations.
Revenue at TJX, which runs TJ Maxx and Marshalls stores, increased by 9% to $13.3 billion, ahead of the analyst estimate of $13.1 billion.
Looking ahead, TJX expects fourth-quarter adjusted profit of 97 cents to $1 a share, below the analyst estimate of $1.13 a share.
Despite the profit warning, TJX Chief Executive Ernie Herman said the retailer’s fourth quarter is off to a strong start.
“We are strongly positioned as a shopping destination for gifts this holiday selling season and are convinced that our values and fresh shipments to our stores and online throughout the season will be a major draw again this year,” Herman said.
The company continues to see “excellent” opportunities to increase sales and customer traffic and win market share, he said.
The company disclosed a fourth-quarter impact of 3 cents a share “from the expected reversal of the third quarter fiscal 2024 benefit from the timing of expenses.”
Prior to Wednesday’s moves, TJX stock was up by 16.2% in 2023, compared with a 17.1% year-to-date rise by the S&P 500
SPX.
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