A tale of two retailers: Kohl's cut its outlook Tuesday just as TJX hiked its forecast.
Kohl's shares dropped more than 18% Tuesday morning after reporting falling comparable store sales and profit that widely missed Wall Street's forecasts.
Kohl's CEO Michelle Gass contends THE COMPANY is entering the holiday period with "momentum." But the company slashed its profit forecast for the full year, saying the need to spend on promotions would cut into earnings.
TJX's results couldn't be more different . Citing strong customer traffic, the operator of discount store brands like T.J. Maxx and Marshalls reported rising quarterly same-store sales and profit that beat expectations. And it raised its full-year profit forecast.
TJX has been opening new stores and remodeling existing ones, pulling in bargain hunters who seek luxury brands at steep discounts.
Its latest results also pulled in more investors, driving its shares up more than 3% in early trading.