(Bloomberg) -- TJX Cos. declined in New York trading after sales at the unit that operates the off-price TJ Maxx and Marshalls chains reported quarterly sales that missed expectations.
Comparable-store sales at the Marmaxx division rose 2% for the quarter, below the average analyst estimate of 3.6%.
TJX shares fell as much as 2.4% in New York trading Wednesday. The stock has climbed more than 27% this year through Tuesday, outperforming the S&P 500 Consumer Discretionary Index and the broader S&P 500.
While overall comparable sales beat expectations, the valuation means TJX needed “nothing short of a flawless quarter to move the needle,” wrote William Blair analysts led by Dylan Carden. Citi analyst Paul Lejuez, meanwhile, wrote that “while the results were strong overall, the weaker Marmaxx comp may pressure the stock today.
The Marmaxx result, combined with the strong year-to-date share gain, outweighed a higher earnings outlook for the full year. The company now sees earnings per share in the range of $4.15 to $4.17, up from the previous range of $4.09 to $4.13. The company continues to see comparable-store sales rising 3% this year.
“Customer transactions drove our comp sales increases,” Chief Executive Officer Ernie Herrman wrote in a press release, highlighting the appeal of the “treasure hunt shopping experience.” He added the fourth quarter has started strong.
(Updates with analyst commentary and share trading. An earlier version of this story corrected the company’s full=year guidance.)
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