TJX shares fall on August results

Shares of TJX Cos. fell today after the operator of T.J. Maxx and other off-price retail stores reported August same-store sales below expectations.

On the New York Stock Exchange, shares for the Framingham company fell $2.41, or 6.6 percent, to $34.38 during midday trading. The stock has traded between $25.49 and $37.52 during the past 52 weeks.

Same-store sales were flat, while analysts expected a 2.1 percent rise. The company said an unexpected drag from foreign currency exchange hurt monthly results.

Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

The company also had leaner clearance merchandise during the month.

C.L. King analyst Mark Montagna urged investors in a note today to buy the stock on any decline in share price.

"TJX has had periods of weakness in its shares and in its reported monthly results, wrote Montagna, who has an "Accumulate" rating on the stock. "In both cases, the shares and performance rebounded. We believe the August reported results present such a buying opportunity."

He said that T.J. Maxx geared its back-to-school marketing and merchandise toward September.

"While such a decision likely hindered August selling, it will almost certainly help September results," Montagna wrote.

TJX operates off-price apparel and home stores including T.J. Maxx, Marshalls, HomeGoods, and A.J. Wright stores in the U.S. It also operates Winners and HomeSense stores in Canada and T.K. Maxx and HomeSense stores in Europe. (AP)