(Reuters) -TJX Cos ( TJX ) maintained annual forecasts and beat Wall Street expectations for first-quarter sales on Wednesday, as shoppers looking for deals to save money in the face of growing economic uncertainties flocked to the stores of the off-price retailer.

Fears of a potential recession and accelerating inflation triggered by hefty tariffs imposed by countries across the globe have pushed people to rethink their spending patterns, boosting demand for off-price and discount goods.

Investors and analysts have said off-price retailers such as TJ Maxx, which rely on expansive sourcing strategies and inventory management, mostly from middlemen in the U.S., can largely sidestep any direct hit from the new China tariffs in the near term.

The TJ Maxx parent's fiscal 2026 forecast assumes that it can offset the significant incremental pressure it has experienced and continues to expect from tariffs.

It expects annual comparable sales to be up 2% to 3% and earnings per share to be in the range of $4.34 to $4.43.

Shares of the company were down about 2% before the bell.

TJX's net sales were at $13.11 billion for the quarter ended May 3, compared with analysts' average estimate of $13.01 billion, according to data compiled by LSEG.