TJX Cos Inc, the parent company of T.J. Maxx and Marshalls, reported better-than-expected profit and comparable store sales, as its discounted offerings attracted shoppers during the holiday season.

Shares of the company rose 1.4 percent to $77.30 in premarket trading on Wednesday.

The company, which raised its quarterly dividend, said comparable store sales rose 3 percent in the fourth quarter ended Jan. 28.

Analysts on average had expected comparable store sales to rise 2.6 percent, according to Consensus Metrix.

TJX and other off-price retail chain operators have been growing quickly as bargain-hungry shoppers turn away from department stores and other mall-based chains.

"We were particularly pleased that customer traffic was the primary driver of our comp increases at every major division, " Chief Executive Ernie Herrman said in a statement. TJX also operates HomeGoods and Sierra Trading Post stores in the United States.

TJX's net income rose to $677.9 million, or $1.03 per share, in the fourth quarter, from $666.5 million, or 99 cents per share, a year earlier.

Excluding certain items, the company earned $1.03 per share, beating analysts' average estimate of $1.00, according to Thomson Reuters I/B/E/S.

The company forecast 2018 adjusted profit of $3.69-$3.78 per share. Analysts on average were expecting $3.79.

TJX posted a 5.6 percent rise in sales to $9.47 billion, beating estimates of $9.44 billion.

The Framingham, Massachusetts-based company said it would raise its dividend by 20 percent to 31.25 cents per share and repurchase $1.3 billion to $1.8 billion worth of shares during the fiscal year ending Feb. 3, 2018.