Off-price retailer TJX Cos. Inc. reported a higher quarterly profit that met Wall Street expectations as cash-strapped consumers flocked to its stores.
The company, which runs the T.J. Maxx and Marshalls chains, also said Tuesday that profit for the current second quarter could top the analysts' view, helping to send the retailer's shares up 3.8 per cent in premarket trade.
Profit rose to $209.2-million (U.S.), or 49 cents per share, in the first quarter ended on May 2 from $193.8-million, or 43 cents per share, a year earlier.
Analysts on average were expecting 49 cents per share after TJX raised its quarterly earnings forecast earlier this month to a range of 47 cents to 49 cents.
Sales rose 1 per cent to $4.35-billion, even after a 6 percentage-point hit from the stronger U.S. dollar, which reduced the value of sales from overseas markets like Canada, Britain, Ireland and Germany.
Sales at stores open at least a year, or same-store sales, rose 2 per cent.
TJX, which buys excess apparel, accessories and home goods in bulk and sells them at deep discounts, said it expected to earn 43 cents to 49 cents per share in the second quarter. Analysts on average were expecting 43 cents, according to Reuters Estimates.
TJX shares rose $1.06 to $29 in trading before the market opened.