KSS Kohls Corporation

By Cara Lombardo 

Discount retailer TJX Cos., which operates TJ Maxx, Marshalls and HomeGoods stores, didn't increase its same-store sales for the first time since 2009, a sign that the off-price chains aren't immune to broader forces reshaping the retail sector.

TJX blamed hurricanes and warmer-than-expected weather for the same-store sales decline in its biggest unit, which includes TJ Maxx and Marshalls, and flat growth overall in its third quarter. A year earlier, the metric grew by 5%.

Results have been mixed among U.S. retailers ahead of the key holiday shopping season. Last week, Macy's Inc.'s same-store sales fell 4% in its latest quarter, while Kohl's Corp. surprised analysts with a slight increase. Nordstrom Inc. reported a decline in overall same-store sales but a slight increase at Nordstrom Rack stores.

Analysts from Consensus Metrix had expected TJX's overall same-store sales to increase 2.3%. As many department stores have struggled to grow sales with more shopping being done online, TJX had for years bucked the trend, finding a niche alongside Nordstrom Rack as a low-cost alternative for increasingly price-conscious consumers.

The last time overall same-store sales didn't increase was the fiscal fourth quarter of 2009 when sales dropped 2%.

Chief Executive Ernie Herrman said in prepared remarks that sales have already improved "as the weather turned more seasonable."

Shares in the company, down 5.8% so far this year, dropped 3.3% to $68.33 in early trading.

Analysts had expected HomeGoods to contribute a 4% same-store sales increase and TJ Maxx and Marshalls to post a 1.7% rise. Instead, HomeGoods sales rose 3% and TJ Maxx and Marshalls sales slid 1%. Same-store sales rose 4% at stores in Canada and 1% at stores in Europe and Australia.

The Massachusetts-based company also missed revenue estimates in its latest quarter, but earnings were in line with analysts' expectations. For the third quarter, TJX reported a profit of $641 million, or $1 a share, up from $549.8 million, or 83 cents, a year earlier.

Revenue rose 7% to $8.76 billion. Analysts surveyed by Thomson Reuters had expected revenue of $8.86 billion.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

November 14, 2017 10:43 ET (15:43 GMT)

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