TJX sees quarterly profit below estimates on soft demand, shares drop

Excluding an expected net benefit of six cents from tariff refunds, TJX sees third-quarter adjusted earnings per share to be in the range of $1.30 to $1.32, compared with analyst expectations of $1.35, according to LSEG data.

Marmaxx, TJX's largest division and home to the TJ Maxx and Marshalls chains, posted comparable sales growth of 1% in the second quarter, slowing from 6% growth in the previous quarter.

"Our fear is that it relates to lower ticket (less purchases per shopping trip) given wider signs of consumer weakness and price increases over the last year and a half," William Blair analyst Dylan Carden said.

TJX, which offers merchandise priced from under $10 to designer goods costing several thousands of dollars, has boosted marketing efforts to attract shoppers with new launches and celebrity-led campaigns.

Aug. 19 (Reuters) - TJX forecast third-quarter profit below Wall Street estimates as slowing growth at its key Marmaxx division fueled concerns of a pullback in consumer spending, sending its shares down nearly 4% in premarket trading on Wednesday.

The Framingham, Massachusetts-based retailer also raised its annual profit forecast and maintained its comparable store sales target for growth between 3% and 4%.

TJX faces mounting competition from value retailers Ross Stores and Burlington Stores as consumers grow more selective with discretionary purchases amid economic uncertainty and a softer labor market.

The company expects additional tariff refunds in the third quarter that could lower merchandise costs, although part of the benefit is expected to be offset by higher incentive compensation and bonus expenses.