Net income declines 6% at TJ Maxx and Marshalls owner

TJX Cos., which operates the T.J. Maxx and Marshalls stores, reported a 6% decline in third-quarter profit as unfavorable exchange rates and a tough economy crimped results for the discount apparel retailer.

The company also forecast a lower-than-expected fourth-quarter profit and cut its fiscal 2009 outlook.

Profit declined to $235.8 million for the three-month period ended Oct. 25. That compares with $249.5 million in the year-earlier period. Earnings per share remained flat at 54 cents as the company had about 5% fewer shares outstanding in the most recent quarter.

Sales rose to $4.76 billion from $4.66 billion.

Analysts polled by Thomson Reuters expected earnings of 55 cents a share and sales of $4.84 billion.

“Given the challenging times, we believe our results speak to our ability to hold our own in tough business cycles,” said TJX Chief Executive Carol Meyrowitz. “We are extremely focused on buying right and running with leaner-than-usual inventory levels, which has led to faster inventory turns and strong merchandise margins.”

The Framingham, Mass.-based firm, however, lowered its fiscal 2009 full-year earnings outlook as it continued to get hurt by a stronger U.S. dollar, which has depressed its international business.

The retailer now expects fiscal 2009 earnings from continuing operations to be in the range of $2.07 to $2.11 a share, with adjusted earnings per share of $2.11 to $2.15. Analysts expect a profit of $2.19.

In October, the company had projected earnings per share of $2.26 to $2.31, with adjusted earnings of $2.15 to $2.20.

TJX expects fourth-quarter earnings from continuing operations to be in the range of 58 cents to 62 cents. Stripping out one-time items, the company forecast an adjusted profit of 68 cents to 72 cents. Analysts anticipate a higher profit of 74 cents.

Its shares fell 25 cents, or 1%, to $23.45 on Tuesday.