TJ Maxx parent beats Q2 results, raises annual profit forecast on strong demand

(Reuters) -Off-price retailer TJX (NYSE:TJX ) Cos raised annual profit forecast after beating quarterly results on Wednesday, banking on gains from easing costs and steady demand for its low-price apparel and accessories.

Shares of the company were up about 5% in premarket trading.

Over the past six quarters, TJX has seen strong demand due to its lower prices, which have resonated with shoppers looking to save money to deal with inflation.

With newer product assortments and well-maintained inventories, the company has been able to take advantage of strong availability of quality merchandise in the market and lure in customers looking for their back-to-school purchases.



The company expects annual earnings per share of $4.09 to $4.13, above its prior forecast of $4.03 to $4.09.

TJX also announced its agreement to invest about $360 million for a 35% stake in privately held Brands For Less. It also maintained the upper end of its annual comparable sales forecast of a 3% rise.

Source: Investing.com