TJX says strong dollar, wage hikes to hurt profit

Discount apparel retailer TJX Cos Inc forecast current-quarter and full-year profit below analysts' expectations, citing a strong dollar and wage hikes.

TJX said on Wednesday it would raise wages in the United States to a minimum of $9 per hour from June, a move that matches Wal-Mart Stores Inc's hike announced last week.

TJX said it expected a strong dollar to reduce its profit by 5 percent and wage hikes to lower earnings by 4 percent in the year ending Jan. 30, 2016.

Shares of the company, which gets nearly a quarter of its revenue from international markets, were down 1.5 percent at $66.17 in early trading.

TJX forecast a profit of 64-66 cents per share for the first quarter and $3.17-$3.25 per share for the full year.

Analysts on average were expecting 72 cents per share for the current quarter and $3.50 for the full year, according to Thomson Reuters I/B/E/S.

The company also said it would buy back up to $1.8 billion-$1.9 billion of shares this fiscal year.

TJX's net income rose 11.3 percent to $648.2 million, or 93 cents per share, in the fourth quarter ended Jan. 31.

Revenue rose 6.3 percent to $8.3 billion. Same-store sales increased 4 percent.

Analysts on average had expected a profit of 90 cents per share and revenue of $8.26 billion.

$1 = £0.65