© Reuters. FILE PHOTO: A TJ Maxx store owned by TJX Cos Inc in Pasadena, California, US, May 15, 2017. REUTERS/Mario Anzoni
(Reuters) – TJX Cos Inc raised its annual profit forecast on Wednesday, counting on lower costs and resilient demand from inflation-affected consumers turning to discount retailers.
The company is starting to see expenses trickle down into its margins after months of grappling with skyrocketing costs related to raw materials, labor and shipping.
TJX (NYSE: ) now expects 2024 adjusted earnings per share to be between $3.39 and $3.48, compared to its previous range of $3.29 to $3.41.
The company also maintained a full-year sales forecast.
However, HomeGoods owner shares fell about 2% in pre-market trading as it missed first-quarter revenue estimates.
Net sales of parent TJ Maxx rose to $11.78 billion in the first quarter, from $11.41 billion a year earlier, below analyst estimates of $11.82 billion, according to IBES data from Refinitiv.