TK Maxx owner sales rise as it updates annual profit forecast

TJX Companies, the parent company of TK Maxx, has reported an 6% increase in net sales to £10.2 billion ($13.4 billion) for the second quarter ending 3 August 2024.

TJX International, including Europe and Australia, delivered a 4% increase in net sales to £1.27 billion ($1.67 billion) against £1.23 billion ($1.62 billion) during the prior year period.

Comparable store sales, which excludes e-commerce, lifted 4% as the company continued to grow its global store estate.

Its overall store count increased by 29 to a total of 5,001. In Europe, TK Maxx jumped from 644 to 645 stores, whilst Homesense dropped from 78 to 77 stores during the quarter.

Meanwhile, the company’s second quarter pretax profit margin was above the high-end of its plan by 0.4 percentage points, reflecting a benefit from lower freight costs and stronger sales.

Looking ahead, TJX now anticipates overall comparable store sales to rise between 2-3% for the third quarter. It also expects a pretax profit margin in the range of 11.8% to 11.9%.

For the full-year, the company expects comparable store sales up 3% and has increased its outlook for pretax profit margin to 11.2%.

Ernie Herrman, CEO and President of TJX Companies, said: "I am extremely pleased with our second quarter performance. Our teams sharply executed on our mission to deliver great value to consumers every day. Our sales growth was entirely driven by customer transactions, which increased at every division.

"The third quarter is off to a strong start. We see excellent buying opportunities in the marketplace and are strongly positioned to ship fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons.

"Longer term, we are excited about our potential to capture additional market share in all of our geographies and to continue our global growth, while delivering great value to more consumers around the world and driving the profitability of TJX."