By Neil J Kanatt
(Reuters) -TJX Cos raised its annual profit forecast on Wednesday, betting on resilient demand at its off-price retail stores despite lingering worries of tariff impact on consumer spending.
Shares of the company rose nearly 4% premarket after it also beat estimates for second-quarter sales and profit.
The company benefits from serving price-conscious shoppers, who prefer value amid economic uncertainties caused by fluctuating U.S. trade policy, which has boosted demand for off-price
and discount goods.
TJX said it can offset cost pressures even if the current U.S. import tariffs remain for the rest of the year, thanks to its vast sourcing strategy that allows it to replenish inventory dynamically.
"Consumers are pulling back, but TJX's purchasing model gives it bandwidth to source relevant products quickly," said Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management, which invests in the company stock.
The TJ Maxx parent expects earnings per share for fiscal 2026 to be between $4.52 and $4.57, compared with its previous view of $4.34 to $4.43.
The company now expects comparable store sales to grow 3% during fiscal 2026, at the higher end of its prior forecast of between 2% and 3% growth.
Net sales of $14.4 billion for the quarter ended August 2, exceeded expectations of $14.13 billion, while earnings per share of $1.10 beat estimates of $1.01, according to data compiled by LSEG.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Devika Syamnath and Arun Koyyur)
