Off-price retailer TJX lifts annual profit forecast on strong demand, lower costs

FILE PHOTO: A T.J. Maxx store which is owned by TJX Cos Inc in Pasadena, California U.S., May 15, 2017. REUTERS/Mario Anzuoni/File Photo

(Reuters) -TJX Cos raised its annual profit forecast and beat first-quarter sales estimates on Wednesday, helped by easing costs and robust demand.

Off-price product categories including apparel and home goods has helped drive demand at TJX for four straight quarters, while its efforts to improve inventory management and lower discounts strengthened its margins to 30%, a 1.1 percentage points increase compared to a year earlier.

The company's decade-old daily 'treasure hunt' strategy also helped in attracting more customers.

The off-price apparel chain owner's quarterly net sales rose 6% to $12.48 billion in the first quarter from a year earlier. Analysts' on an average expected sales of $12.46 billion, according to LSEG data.

The company expects annual earnings per share to be in the range of $4.03 to $4.09, compared with its prior forecast of $3.94 to $4.02.

Shares of the company were up 2% before the bell.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shinjini Ganguli)