The parent company for lower-priced retailer T.J. Maxx released its annual earnings forecast on Wednesday and expects to see lower profits as the U.S. deals with lingering inflation troubles.
TJX Cos Inc. expects profits within the yearly forecast for the company and same-store sales to drop after watching quarterly revenue miss estimated markers, Reuters reported.
RELATED: Target profits drop nearly 90% amid inflation woes, company offloads inventory pile-up
Rising inflation has pushed many American consumers, especially those with lower incomes, to cut their spending on non-essentials, including clothing and home good, which are popular product categories at T.J. Maxx stores across the country.
Ernie Herrman, CEO and president of TJX Companies Inc. said, "U.S. comp sales for the second quarter came in lighter than we expected as we believe historically high inflation impacted consumer discretionary spending. While we saw more softness in our home categories, we were very pleased that comp sales in our overall apparel business at Marmaxx were slightly positive every month of the quarter."
Herrman said, "While we are not immune to macro factors, we are convinced that the flexibility of our off-price business model and the value proposition we offer to a wide range of consumers will continue to serve us well, as we have seen throughout our 46-year history."
