Update at 9:43 am EST
TJX Companies (TJX) shares slumped lower Wednesday after the Marshall's and TJ Maxx owners posted softer-than-expected holiday quarter earnings thanks in part to Omicron-linked closures of its discount and off-price retail stores.
TJX said diluted earnings for the three months ending in January nearly doubled from last year to 78 cents per share, but missed the Street consensus forecast of 91 cents. Group net sales, the company said, were up 26.6% to $13.85 billion, a figure that also fell shy of analysts' estimates of a $14.2 billion tally.
Looking into the current financial year, the Home Goods owner said it sees first quarter earnings in the range of 58 to 61 cents per share, with comparable U.S. store sales rising between 1% and 3%, but decline to provide full year guidance.
"Fourth quarter sales were trending higher before the surges in Omicron," said CEO Ernie Herrman. "During the holiday selling season and throughout the year, our shoppers responded to our amazing brands, excellent values, and inspiring treasure hunt shopping experience."
"While freight and wage cost pressures remain elevated, we are pleased that our retail pricing strategy is working very well," he added. "This gives us confidence in improving our profitability when the macro environment normalizes, while continuing to offer exceptional values to customers every day."
TJX Companies shares were marked 5.9% lower in early Wednesday trading to change hands at $61.42 each, a move that would extend the stock's six-month decline to around 18.3%.
TJX's results offer a sharp contrast to department store bellwether Macy's (M), which posted stronger-than-expected fourth quarter earnings Tuesday, while boosting its dividend and share buyback plans, thanks to a 28.3% surge in overall same-store sales.
