TJX Companies Meets Q3 Views But Offers Weak Outlook

TJX Companies Inc TJX met third-quarter expectations Tuesday but offered an outlook below the Wall Street consensus.

Shares fell 1.9 percent recently to $60.33 per share.

The off-price retailer posted same-store sales growth in the recent period of 2 percent, including growth of 1 percent for combined results of TJ Maxx and Marshalls stores, and 7 percent at its Homegoods outlets.

TJX forecast fourth-quarter profits of $0.86 to $0.90 a share, on same-store sales growth of 1 percent to 2 percent, along with wider merchandise margins. Wall Street expects $0.94 a share.

TJX also forecast full-year 2014 net earnings of $3.07 to $3.11, same-store sales growth of 1 percent to 2 percent and adjusted earnings of $3.09 to $3.13 per share.

Analysts hope to see earnings of $3.17 per share.

During fiscal 2015, the company continues to expect to buyback shares worth $1.6 billion to $1.7 billion.

Chief Executive Carol Meyrowitz said the current fourth quarter is "off to a very strong start" and the company is "confident in its short and long-term prospects."

Meyrowitz said warm weather hurt third-quarter sales throughout European starting in September and U.S. sales in October.

For the recent third quarter ended November 1, the consolidated pretax profit margin widened 0.4 points to 13 percent.

Net income in the recent period fell more than 4 percent to $595 million, or $0.85 a share, from year-earlier profit of $622.7 million or $0.86 per share. Sales grew 5.5 percent to $7.37 billion, from $6.98 billion.

Wall Street expected $0.85, on sales of $7.44 billion.