TJX Cos forecasts muted annual sales and profit as consumers pull back spending

Core Viewpoint - TJX Cos has forecasted annual sales and profit below Wall Street estimates, indicating strained discretionary spending among budget-conscious consumers amid economic uncertainty [1][2] Group 1: Sales and Profit Forecast - The company expects annual comparable sales to rise between 2% and 3%, lower than analysts' average estimate of 3.5% growth [3] - Earnings per share for fiscal 2027 are forecasted to be between $4.93 and $5.02, compared to analysts' average estimate of $5.18 per share [3] Group 2: Market Conditions and Competition - There are growing concerns over declining discretionary purchases as living costs rise, leading to smaller basket sizes and softer demand among lower-income shoppers [2] - The company faces intense competition from rivals such as Ross Stores, Burlington Stores, Amazon.com, and fast-fashion chains like Shein, all expanding their discount offerings [3] Group 3: Recent Performance and Market Reaction - TJX reported a quarterly comparable sales increase of 5%, exceeding the estimate of 3.6% growth [4] - Adjusted earnings per share for the fourth quarter were $1.43, surpassing the expectation of $1.39 per share [5] - Overall store traffic increased by 2.8% at TJ Maxx and 3.3% at Marshalls compared to the previous year, boosted by the holiday season [5] - The company announced an additional share repurchase plan of up to $3 billion [5]