TJX Cos., the owner of the T.J. Maxx and Marshalls chains, said full-year profit would be lower than it projected as consumers facing a credit crunch buy less home decor and bedding.
The retailer's shares dipped 1.1 percent to $23.45 in New York trading after it also said third-quarter earnings dropped 5.5 percent to $235.8 million.
TJX's sales gains are outpacing those at Macy's Inc. and other department stores as bargain-hunting consumers seek name-brand clothing and shoes that cost as much as 60 percent less. Today's forecast suggests that even discount retailers may suffer as consumers facing the worst financial crisis since the Great Depression halt spending on non-necessities.
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“The original thought was TJX would be more immune to a slowdown because consumers would trade down,” said David Abella, a portfolio manager at Rochdale Investment Management in New York. “The economic slowdown is steep, if it's hurting even TJX.” The firm has $2 billion under management, including TJX shares.
TJX said Tuesday that full-year adjusted earnings will be $2.11 to $2.15 a share, which includes a 9-cent benefit from an extra week in the sales calendar. In October, the company said it expected $2.26 to $2.31 on that basis.
Macau has no plans to help Las Vegas Sands Corp. with financing after the struggling casino operator announced it was suspending multibillion-dollar projects in the Chinese gambling city amid a cash crunch, the territory's leader said Tuesday.
“Because of its over-leveraged borrowing in the U.S. and around the world, it's normal and expected that it has to suspend some of its projects,” Macau Chief Executive Edmund Ho said.
On Monday, Sands said it was suspending several projects, in Macau and elsewhere, and had agreements to raise $2.14 billion in new capital.