TJX (TJX) lowered the top end of its full-year outlook on Tuesday after reporting weaker-than-expected first-quarter profits and disappointing sales.
The Framingham, Mass.-based parent of T.J. Maxx, Marshalls and HomeGoods reported net income of $454 million, or 64 cents, compared with a year-earlier profit of $452.9 million, or 62 cents. EPS was short of the 67 cents predicted by analysts in a Thomson Reuters poll.
Revenue for the three-month period increased 5% to $6.49 billion from $6.19 billion a year ago, below the Street’s view of $6.6 billion. Same-store sales, a key growth metric of sales at stores open longer than a year, increased 1%.
In a statement, TJX chief Carol Meyrowitz said earnings were slightly below the company’s own expectations, due in large part to negative exchange rates, though she remained optimistic.
“While sales were not as strong as we would have liked, predominantly in our apparel business, I was very pleased that overall business trends improved as the quarter progressed," Meyrowitz said. “Our inventories and expenses were well managed, which helped protect our margins.”
Meanwhile, the off-price retailers cut the upper-end of its full-year guidance, now predicting non-GAAP EPS of $3.05 to $3.17, below the consensus view of $3.19.
For the second quarter, TJX is anticipating non-GAAP earnings in the range of 70 cents to 74 cents, mostly below the consensus view of 74 cents.
Shares of TJX fell 5.7% to $55.06 in recent trade.