(Reuters) – TJX Cos Inc raised annual same-store sales forecast on Wednesday, as inflation-hit consumers turn to the discount store for affordable clothing and home decor items ahead of the crucial holiday season.

Lower-income consumers have shown a preference for shopping at stores that offer products at cheaper prices as the United States stares at a recession while prices of food and everyday essentials soar.

Analysts believe TJX is well-positioned to capture more customer traffic than other retailers due to its value-positioning and as consumers opt for cheaper alternatives to branded goods.

The discount store operator expects 2023 same-store sales to decrease 1% to 2%, compared to its prior forecast of a 2% to 3% drop.

The HomeGoods stores owner now sees full-year adjusted profit per share between $3.07 and $3.11, compared to prior forecast of $3.05 to $3.13.

Analysts on average expect 2023 profit of $3.10 per share, according to IBES data from Refinitiv.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Vinay Dwivedi)