By Sanskriti Shekhar
Aug 19 (Reuters) - TJX forecast third-quarter profit below Wall Street estimates as slowing growth at its key Marmaxx division fueled concerns of a pullback in consumer spending, sending its shares down nearly 4% in premarket trading on Wednesday.
The Framingham, Massachusetts-based retailer also raised its annual profit forecast and maintained its comparable store sales target for growth between 3% and 4%.
TJX faces mounting competition from value retailers Ross Stores and Burlington
Stores as consumers grow more selective with discretionary purchases amid economic uncertainty and a softer labor market.
Excluding an expected net benefit of six cents from tariff refunds, TJX sees third-quarter adjusted earnings per share to be in the range of $1.30 to $1.32, compared with analyst expectations of $1.35, according to LSEG data.
Marmaxx, TJX's largest division and home to the TJ Maxx and Marshalls chains, posted comparable sales growth of 1% in the second quarter, slowing from 6% growth in the previous quarter.
"Our fear is that it relates to lower ticket (less purchases per shopping trip) given wider signs of consumer weakness and price increases over the last year and a half," William Blair analyst Dylan Carden said.
TJX, which offers merchandise priced from under $10 to designer goods costing several thousands of dollars, has boosted marketing efforts to attract shoppers with new launches and celebrity-led campaigns.
The company expects additional tariff refunds in the third quarter that could lower merchandise costs, although part of the benefit is expected to be offset by higher incentive compensation and bonus expenses.
The TJ Maxx parent expects earnings per share for fiscal 2027 to be between $5.31 and $5.36, compared with its previous forecast of $5.08 to $5.15.
Net sales rose 5.4% to $15.18 billion in the quarter ended August 1, narrowly beating estimates of $15.16 billion.
The company reported quarterly adjusted earnings per share rose 11% to $1.22, slightly above expectations of $1.19.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Devika Syamnath)
