TJX Companies Inc (NYSE:TJX) shares moved lower as weak profit guidance for the holiday quarter drew focus from its better-than-expected financial performance during Q3.
The TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra and Winners parent company now expects earnings per share (EPS) in the range of $1.12 to $1.14 for Q4, short of the $1.17 expected by Wall Street analysts.
It continues to expect comparable store sales growth of 2% to 3%.
For Q3, revenue of $14.06 billion was ahead of estimates of $13.95 billion.
Comparable store sales were up 3%, attributed to an increase in customer transactions.
EPS of $1.14 were up 11% year-over-year and topped Street estimates of $1.10.
“Our comparable store sales increase of 3% was at the high-end of our plan, and both pretax profit margin and earnings per share came in well above our expectations,” TJX Companies CEO Ernie Herrman commented.
“The fourth quarter is off to a strong start, and we are excited about our opportunities for the holiday selling season.”
Shares of TJX traded down 1.4% at about $118 in early trade in New York on Wednesday.