TK Maxx owner raises outlook as Q3 sales rise

TJX Companies, the parent company of TK Maxx, has reported an 9% rise in net sales to £10.7 billion ($13.3 billion) for the third quarter ending 28 October.

TJX International, including Europe and Australia, saw net sales increase 10% to £1.2 billion ($1.6 billion) against £1.1 billion ($1.4 billion) the prior year.

Comparable store sales, which excludes e-commerce sites, lifted 6%. This was entirely driven by customer traffic, the company said.

Store count increased by 50 to a total of 4,934. In Europe, TK Maxx jumped from 636 to 641 stores, whilst Homesense remained flat at 79 stores.

Pretax profit margin totalled 12% during the third quarter, up 0.8 percentage points against last year and above the company’s plan.

Looking ahead, TJX Companies now anticipates overall comparable store sales to rise between 4-5% for FY24. It also expects a pretax profit margin of 10.8%.

Ernie Herrman, CEO and President of TJX Companies, said: “I am extremely pleased with our third quarter performance. With our above-plan results in the third quarter, we are raising our full year guidance for comparable store sales.

"We are strongly positioned as a shopping destination for gifts this holiday selling season and are convinced that our values and fresh shipments to our stores and online throughout the season will be a major draw again this year.

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