TJX Cos. says 1st-quarter income up as revenue rose, but outlook disappoints investors

TJX Cos. profit soared in 1Q as revenue rose

FRAMINGHAM, Mass. — More shoppers from all income levels headed to discount stores owned by the TJX Companies Inc., giving first-quarter sales and profit a sharp boost, the company said Tuesday.

But the company gave a lower-than-expected outlook for the year, and its shares fell in trading.

TJX — which operates Marshalls, T.J. Maxx and HomeGoods — reported that its net income rose 58 percent to $331.4 million, or 80 cents per share, for the quarter. That’s compared with $209.2 million, or 49 cents per share, a year earlier.

Revenue grew 15 percent to $5 billion as sales grew across its stores.

Those results beat the expectations of analysts surveyed by Thomson Reuters, who on average forecast profit of 78 cents per share on revenue of $4.95 billion.

For the full fiscal year, TJX said it expects to earn $3.21 to $3.32 per share, below analyst expectations of $3.35 per share.

The company said it will face tougher comparisons as the year unfolds and its results are contrasted against quarters when its popularity and profitability already were rising. But its leaders said the company’s business model is solid.

“Consumers will remain focused on value in both weak and strong economic environments,” said CEO and President Carol Meyrowitz.

TJX said it drew new customers during the quarter from a growing array of income levels, which it says is due in part to increased marketing that it plans to continue.

“Today we believe that value is more important than ever in customers’ minds across all demographics,” she said.

TJX stood by its plan to double in size. It also said its remodeled stores produced stronger sales during the quarter, and renovations in the current quarter could continue boosting revenue.

Lazard Capital analyst Todd Slater maintained a “buy” rating on TJX shares, saying the company’s guidance is conservative.

Shares of TJX, based in Framingham, Mass., fell $1.79 to $43.46 in early afternoon trading.