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Shoppers are spending big at T.J. Maxx, HomeGoods as Target sales slide



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Shoppers at a TJ Maxx store in New York.Scott Mlyn | CNBCCash-strapped consumers may be pulling back on discretionary purchases at Target, but they’re spending big on name brands and home goods at off-price TJX Cos. The discounter raised its full-year outlook on Wednesday after posting a 7.7% year-over-year sales jump and a 23% rise in profits. It cited high customer traffic and a windfall of premium merchandise that it secured from higher-end retailers eager to offload their bloated inventories. Here’s how TJX Cos. did during its fiscal second quarter, compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:Earnings per share: 85 cents vs. 77 cents expectedRevenue: $12.76 billion vs. $12.45 billion billion expectedThe company’s reported net income for the three-month period that ended July 29 was $989 million, or 85 cents per share, compared with $810 million, or 69 cents per share, a year earlier. Sales climbed to $12.76 billion, up 7.7% from $11.84 billion a year earlier. Shares of TJX Cos. reached a new 52-week high on Wednesday, spiking more than 4%.TJX Cos., which runs T.J. Maxx, Marshalls, HomeGoods, Sierra and Homesense in the U.S., raised its full-year outlook for comparable store sales, pretax profit margin and earnings per share following the strong quarter.The company now expects comparable store sales to climb 3% to 4%. It anticipates pretax profit margin in the range of 10.7% to 10.8%, and earnings per share between $3.66 and $3.72. Analysts had been expecting earnings to be $3.59 per share, according to Refinitiv. TJX may have had a stronger quarter, but the figures also compared with a prior year when sales had slid 1.9% and comparable store sales had fallen about 5%, Neil Saunders, managing director and retail analyst at GlobalData, noted. Still, the retailer is managing to win market share.As inflation-weary and debt-laden consumers pull back on h …

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