Discount clothing and home decor chain TJX Cos. (TJX) - Get Report on Tuesday reported strong fiscal second-quarter earnings as consumers continued to flock to TJ Maxx Marmaxx-branded stores in search of what the company itself calls the "treasure hunt" shopping experience, though lower guidance pushed its stock lower.
The Framingham, Mass. company posted net income for the quarter ended Aug. 3, of $759 million, or 62 cents a share, up from $739.6 million, or 58 cents a share, in the comparable year-ago quarter. The per-share results matched the consensus estimate of analysts polled by FactSet.
Sales rose 5% to $9.8 billion, above the $9.3 billion it brought in a year ago though slightly below the $9.9 billion consensus estimate expected by analysts. Consolidated comparable-store sales increased 2% vs. last year's 6% increase.
"This quarter marks the 20th straight quarter of customer traffic increases at TJX and Marmaxx," CEO Ernie Herrman said in a statement. "This speaks to the consistency and fundamental strength of our treasure-hunt shopping experience through many types of retail and economic environments."
Offsetting the good news, however, was the company's forward earnings expectations. For its fiscal third quarter, TJX said it now expects per-share earnings in the range of 63 cents and 65 cents, below current FactSet consensus estimates of 68 cents a share, and full-year earnings of between $2.56 and $2.61 a share, also below consensus forecasts of $2.62 a share.
Shares of TJX fell 2.7%, or $1.43 a share, to $50.12 in early trading on the New York Stock Exchange.
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