(Reuters) – TJX Cos on Wednesday raised its annual profit forecast, buoyed by demand for its discounted apparel and accessories as customers looked for pocket-friendly options.
Shares of the company rose 4% premarket, with TJX also topping second-quarter profit and revenue estimates.
Signs of cooling inflation have boosted demand at off-price retailers such as TJX Cos, which offers brands ranging from Jimmy Choo to Alexander McQueen at discounts between 20% and 60%.
The Marshalls parent also benefited from higher prices of some products, which it raised in order to mitigate the impact of rising input costs.
U.S. comparable sales at the company’s apparel and accessories segment Marmaxx rose 8% in the second quarter. TJX was also supported by a rebound in demand at its HomeGoods outlets, which rose by 4% in the reported quarter.
The company’s quarterly revenue rose to $12.76 billion from $11.84 billion a year earlier, while analysts on average expected revenue of $12.45 billion, as per Refinitiv data.
The T.J. Maxx parent now expects annual adjusted profit between $3.56 and $3.62 per share, compared with its previous forecast of between $3.39 and $3.48 per share.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Krishna Chandra Eluri)
