TJX shares drop 9% as company eyes wage, macroeconomic concerns
Photo | Grant Welker
TJX is headquartered in Framingham.
Shares of Framingham-based retailer TJX Cos. dropped by more than 9 percent Tuesday as the company said incremental freight costs and wage increases will negatively impact growth.
For the fourth quarter, the company is expected diluted earnings per share to be capped at 67 cents, compared to 69 cents last year. For the full year, those factors will impact earnings-per-share growth by about 5 percent, the company said in its quarterly earnings report.
In a conference call discussing the report, CEO Ernie Herrman said fiscal 2020 could bring about a decline in earnings per share.
“Certainly, the macro factors, which remain uncertain, including foreign currency, tariffs, Brexit, all those things are weighing in,” he said.
Despite some limited concerns and shares falling to $46.95 at Wednesday’s open from a high of $55.68 on Nov. 9, the company reported a strong third quarter with revenue increasing 12 percent to $9.8 billion in the third quarter.
TJX reported a profit of $762.2 million, a 16-percent increase over the company’s third quarter profit last year.
For the year, the company is way ahead of last year, reporting $2.2 billion in net income on $27.8 billion in sales, increases of 29.41 percent and 11.65 percent, respectively.
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