A T.J. Maxx store in Miami, Florida. MUST CREDIT: Eva Marie Uzcategui/Bloomberg Let us read it for you. Listen now. Your browser does not support the audio element.
Off-price retailer TJX Cos. raised its full-year earnings per share outlook after better-than-expected results, a sign that shoppers wary of economic uncertainty are turning to discounters.
The TJ Maxx and Marshalls parent now expects full-year earnings per share of $4.52 to $4.57, up from $4.34 to $4.43. The company said it assumed it will be able to offset the significant pressure it expects from tariffs throughout next year.
Revenue of $14.4 billion in the three months ending Aug. 2 beat analysts' expectations. Chief Executive Officer Ernie Herrman said in the statement that the current quarter is "off to a strong start."
Shares of TJX rose 2.71% by the end of trading on Wednesday. The stock had gained 11% this year through Tuesday's close.
Customers have grown more worried about tariff-related price hikes and inflation. The Framingham, Mass.-based retailer's model offers lower-priced items from popular brands, and has the ability to swap its inventory based on availability.
TJX is thriving while other retailers struggle to cope with shifting tariff policies from the Trump administration and economic uncertainty keeping shoppers' wallets tight.
"While its closest peer set, department stores, continues to face margin pressure and store closures, TJX delivered margin improvement and continued to grow its footprint, cementing its healthy position in a mixed economic climate," said Suzy Davidkhanian, an analyst at Emarketer.
TJX has been aggressively snapping up excess merchandise from brands looking to clear out piles of unsold goods. Management said there were "excellent buying opportunities" in the market and pounced on those deals. Total inventories rose nearly 14% to $7.4 billion for the quarter.