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T.J. Maxx parent cuts U.S. sales forecast as inflation hits spending -Breaking

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© Reuters. FILE PHOTO – A T.J. Maxx shop is owned by TJX Cos Inc, Pasadena California U.S.A, May 15, 2017. REUTERS/Mario Anzuoni

(Reuters) – Discount retailer TJX (NYSE 🙂 Cos Inc cut Wednesday its full-year revenue forecast following a missed first quarter revenue estimate. This was due to a drop in apparel and other discretionary items demand amid increasing inflation.

Premarket trading saw shares of the company fall by about 2%. The Marshalls and T.J. Maxx stores are well-known.

As consumers in the United States are feeling the pinch due to higher gasoline and food prices, they have cut down on their discretionary purchases such as clothes and household goods.

Walmart, a big-box retailer (NYSE:), on Tuesday noted that consumers have “shifted slightly away” from purchasing more discretionary goods like furniture and apparel.

According to the company, U.S. Same-Store Sales Growth is now expected to rise by 1% to 2.2% in 2018, compared to its previous outlook of an increase of 3%–4%.

The HomeGoods parent’s net sales increased to $11.41 million in the first quarter, up from $10.09 trillion a year ago. According to Refinitiv IBES data, analysts had predicted sales of $11.59 trillion.

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