TK Maxx owner raises outlook after Q2 sales rise

TJX Companies, the parent company of TK Maxx, has reported an 8% increase in net sales to £10 billion ($12.8 billion) for the second quarter ending 29 July 2023.

TJX International, including Europe and Australia, saw net sales grow 8% to £1.2 billion ($1.6 billion) as customer traffic increased.

For Q2, TJX Companies also shared the following results:

• Pre-tax profit margin up 1.2 percentage points to 10.4%.
• Net income of £785 million ($1 billion).
• Overall comparable store sales lifted 6% during the quarter.

The company increased its overall store count by 19 stores to 4,884 stores. In Europe, TK Maxx jumped from 632 to 636 stores and Homesense from 78 to 79 stores.

Looking ahead, TJX Companies expects pretax profit margin to be in the range of 11.3% to 11.5% for the third quarter of FY24.

Ernie Herrman, CEO and President of TJX Companies, said: "I am extremely pleased with our second quarter performance. With our above-plan results, we are raising our full-year outlook for comparable store sales, pretax profit margin, and earnings per share.

"The third quarter is off to a very strong start and we are seeing tremendous off-price buying opportunities in the marketplace.

"We are in an outstanding position to continue shipping fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons.

"Going forward, we continue to see excellent opportunities to grow sales and customer traffic, capture market share, and drive the profitability of our company."