TK Maxx owner quarterly sales and profits climb

The off-price retail titan, which operates TK Maxx and Homesense stores in the UK, recorded net income across the group of $759m (£626m) in the 13 weeks to August 3, up 3% year on year, while sales rose 5% to $9.8bn (£8bn).

In the six months to August 3, the group reported a 6% year on year increase in net sales to $19.1bn (£15.7bn) – up from $18bn in 2018 (£14.8bn).

The retail group, which operates stores across Europe and Australia, recorded flat profits across its international store portfolio of $44m (£36.2m), excluding currency impact.

Excluding currency impact, net sales across the TJX’s international estate rose 10% to $1.4bn (£1.2bn) in the quarter, spurred by a 6% rise in like-for-like sales. In the year to date, like-for-like sales increased 7%.

TJX opened two new stores in the UK and Ireland during the period, taking its total estate to 374. Across its international estate, the off-price retail group expanded its estate from 695 stores at the beginning of the quarter to 703.

Across the group, gross profit margin dipped 0.7% to 28.2%, which the retailer said was “primarily due to a decrease in merchandise margin and higher supply chain costs”.

TJX said it maintains its third-quarter and full-year expectations.

Chief executive Ernie Herrman said: “This quarter marks the 20th straight quarter of customer traffic increases at TJX and Marmaxx. This speaks to the consistency and fundamental strength of our treasure-hunt shopping experience through many types of retail and economic environments. The third quarter is off to a solid start. We feel great about the terrific availability we are seeing in the marketplace for branded, quality merchandise and our ability to capitalise on the opportunities.”