Earnings Preview: TJX Companies

| About: TJX Companies (TJX)

The TJX Companies (NYSE:TJX) is expected to report Q3 earnings before market open Tuesday Nov. 11, with a conference call scheduled for 11:00 am ET.


Analysts are looking for a profit of 56c on revenue of $4.62B. The consensus range for revenue is $4.57B to $4.65B, according to First Call. The company recently revised its Q3 EPS guidance to "slightly below" the previous view of 55c to 58c and reported that its October same-store sales fell -6% vs. Retail Metrics estimate of -0.4%. The retailer said its October results were hurt by the "precipitous drop" in foreign currency exchange rates versus the dollar although traffic is up at most of its divisions and it's gaining market share.

Analyst Views

Consumers have cut back spending on discretionary items and are spending at wholesale clubs and discount apparel chains. William Blair analyst Daniel Hofkin said last month that TJX has an advantage over competitors in its buying scale and prowess. The analyst said that in addition to its strong focus on financial returns and buying discipline, the company is able to attract shoppers during challenging economic periods "owing to the significant savings its stores offer on mid-range and premium apparel" and other items, and keep a "significant portion" of those customers in stronger economic periods.