TJX Cos raised annual sales and profit forecasts on Wednesday, betting that a wide sourcing network and fresh seasonal assortments will attract bargain-hunting customers to its off-price stores.

Shares of the TJ Maxx parent rose about 3% in premarket trading, after it also beat third-quarter estimates.

The Framingham, Massachusetts-based company has capitalized on a seasonal shift from late-summer to fall fashion, boosted by back-to-school demand. The company has also seen steady appetite for discounted merchandise as rising living costs stretch household budgets.

TJX had previously said its expansive sourcing strategy enables it to offset cost pressures stemming from U.S. tariffs by replenishing inventory as needed, helping avoid a direct hit.

"TJX's sourcing model works in its favo

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