TJX Falls Most in Five Years After Profit Lags EstimatesKevin Orland
TJX Cos., owner of the T.J. Maxx discount chain, fell the most in more than five years after posting first-quarter profit and sales that trailed analysts’ estimates.
The shares tumbled 7.6 percent to $53.95 at the close in New York for the biggest one-day drop since December 2008. TJX has slid 15 percent this year, compared with a 1.3 percent gain for the Standard & Poor’s 500 Index.
Profit in the quarter ended May 3 was 64 cents a share on sales of $6.49 billion, the Framingham, Massachusetts-based company said today in a statement. Analysts’ estimated profit of 67 cents on $6.6 billion in revenue.
U.S. retailers are trying to entice shoppers with steep discounts as still-shaky consumer confidence restrains spending and after harsh winter weather hurt traffic at malls and stores. Chief Executive Officer Carol Meyrowitz said today on a conference call that weather reduced same-store sales by as much as 4 percentage points in some areas of the country.