Discount retailer TK Maxx reports Q1 sales “significantly exceeded” expectations

The TJX Companies, the parent company of beauty and fashion retailer TK Maxx, has reported that the pretax profit margins for Q1 of fiscal 2024 were up by 10.3%, "well above the company’s plan".

The TJX Companies, the off-price apparel, beauty and home retailer, today announced sales and operating results for the first quarter ending 29 April 2023. The retailer, which compels shoppers via its "treasure-hunt shopping experience", appeals to a wide demographic.

Net sales for the first quarter of fiscal 2024 stood at £9.5 billion ($11.8 billion), an increase of 3% year-on-year, driven by an increase in customer traffic. Overall store sales increased by 3% and the net income stood at £715 million ($891 million).

TJX International, which includes the UK, reported that comparable store sales were up by 4% to  £1.1 million ($1.4 million). Comparable store sales exclude e-commerce sites (tjmaxx.com, marshalls.com, homegoods.com, sierra.com, and tkmaxx.com).

Ernie Herrman, Chief Executive Officer and President of the TJX Companies, commented: "I am very pleased with our first quarter performance. Our pretax profit margin and earnings per share both significantly exceeded our plan and our 3% comparable store sales increase was at the high end of our plan.

"The strength and flexibility of our off-price business model, the depth of our organization’s expertise, and our wide demographic reach all give me great confidence in our ability to continue to succeed in today’s retail environment.

"Every day, our global organisation is focused on bringing customers around the world excellent values on great fashions and great brands and an exciting, treasure-hunt shopping experience... Going forward, I am confident that we have significant opportunities to grow sales, drive customer traffic, capture market share, and improve the profitability of our company."

Moving forward, the company expects store sales to be up by 2-3% for the second quarter of fiscal 2024, with a pretax profit margin sitting between 9.3% and 9.5%.

For the fiscal year ending 3 February 2024, the company continues to plan overall comparable store sales to be up 2-3%, with a pretax profit margin between 10.3% and 10.5%.

At the end of the 2023 fiscal year (28 January), the company reported a 3% increase in net sales to £41.4 billion ($49.9 billion), revealing "strong" performance from apparel and accessories.

What's more, the company has signed a deal to open a new store in the extensive former Debenhams space at Westfield London. The upcoming 30,000 sq ft TK Maxx store is reportedly one of four branches set to launch in the UK this year, with the Westfield store set to open in autumn.