T.J. Maxx parent cuts U.S. sales forecast as inflation hits spending

Reuters – Discount store operator TJX Cos Inc on Wednesday cut its fullyear sales forecast after missing firstquarter revenue estimates, as demand for apparel and discretionary goods showed signs of easing amid rising inflation.

Shares in the company, which is known for its Marshalls and T.J. Maxx store chains, fell about 2 in premarket trading.

The downward revision from the offprice retailer comes as consumers across the United States feel the pinch from higher gas and food prices and cut back spending on discretionary items such as clothing and home goods.

Bigbox retailer Walmart on Tuesday also noted consumer spending “shifted somewhat away” from more discretionary items including apparel and furniture.

The company now expects U.S. samestore sales growth to be at 1 to 2 for the full year, compared with its earlier outlook of a 3 to 4 rise.

Net sales at the HomeGoods parent rose to 11.41 billion in the first quarter from 10.09 billion a year earlier. Analysts had estimated sales of 11.59 billion, according to Refinitiv IBES data.