TJX's guidance raise fails to clear a high bar; Shares dip

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TJX's guidance raise fails to clear a high bar; Shares dip
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TJX Companies (NYSE: TJX ) raised its full-year forecast after it reported stronger-than-expected results for the third quarter.

Still, the stock fell 2.5% in pre-market Wednesday.

TJX reported Q3 EPS of $1.03, beating the analyst estimate of $0.99. The company's revenue for the quarter was $13.27 billion, up 9% year-over-year and ahead of the consensus estimate of $13.05 billion.

Same-store sales rose 6% YoY, while analysts were expecting a jump of 4.5%. Inventory levels decreased by 0.5% to $8.29 billion, a smaller-than-expected contraction.

“I am extremely pleased with our third quarter performance and strong execution of our teams as our comp store sales, pretax profit margin, and earnings per share all exceeded our expectations,” said Ernie Herrman, Chief Executive Officer and President of The TJX Companies.

“I am particularly pleased with the results at our Marmaxx and HomeGoods divisions, which delivered terrific comp sales increases entirely driven by customer traffic. Customer traffic was up across all divisions, our overall apparel sales remained very strong, and home sales were outstanding and accelerated sequentially versus the second quarter.”

Looking ahead, TJX sees full-year EPS in the range of $3.61 to $3.64, compared to its previous forecast of $3.56 to $3.62 per share. The consensus stands at $3.73.

The company is now anticipating overall comparable store sales to be up 4% to 5% for its fiscal year.

For the current quarter, TJX sees same-store sales up 3-4%, while adjusted EPS is seen in the range of $0.97-1.00. The Street was looking for $1.13 in Q4 EPS.

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