TK Maxx's parent company raises profit forecast 

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

TK Maxx's parent company TJX also owns Homesense and operates as TJ Maxx in the US. 

Off-price retailer TK Maxx’s parent company TJX raised its annual profit forecast after its latest financial results beat estimates, banking on gains from easing costs and strong demand for its affordable apparel and accessories.

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

Over the past 18 months, TJX, which also owns Homesense and operates TJ Maxx in the US, has kept prices low to attract shoppers who are worried about spending in an inflationary environment.

With newer product assortments and well-maintained inventories, the company has lured in customers looking for their back-to-school purchases.

TJX said its third quarter is off to a "strong start" and sees more buying opportunities in the marketplace as it is well-positioned to ship fresh merchandise to both stores and online in the upcoming fall and holiday seasons.

Furthermore, benefits from easing freight costs helped TJX earn quarterly profit of 96c per share, versus analysts' estimates of 92c apiece.

Chief executive of TJX Ernie Herrman said on the back of these results they are raising the full-year guidance for both pretax profit margin and earnings per share.

The company expects annual earnings per share of $4.09 (€3.67) to $4.13, above earlier forecast of $4.03 to $4.09.

It reported net sales of $13.47bn in the quarter ended August 3, compared with analysts' estimates of $13.31bn. 

TJX said it has agreed to invest about $360m for a 35% stake in Brands For Less, a privately held off-price branded apparel and home fashions retailer in Dubai.

It also maintained the upper end of its annual comparable sales forecast of a 3% rise.

Reuters