TK Maxx parent TJX Companies sees sales drop in Q2

TJX Companies, owner of TK Maxx and Homesense, has announced its financial results for the second quarter ending 30 July 2022, revealing a 2% decrease in global sales to £9.8 billion ($11.8 billion).

For the second quarter, TJX Companies shared the following results:

• Net sales for TJX International (Europe and Australia) totalled £1.2 billion ($1.5 billion).
• Global Net income of £673 million ($809 million).
• Gross profit margin of 27.6%, a 1.8 percentage point decrease.
• Operating cash flow of £533 million ($641 million), ending the quarter with $3.5 billion of cash.

During the second quarter, the group increased its store count by 21 stores to a total of 4,736 stores. In the UK, TK Maxx reported 626 stores, three more than the beginning of the quarter.

For the first half, the group's net sales were £19.3 billion ($23.2 billion), an increase of 5% against the prior year. Net income for H1 totalled £1.1 billion ($1.4 billion).

Looking ahead to FY23, TJX Companies expects a pre-tax profit margin between to 9.3% to 9.5%.

Ernie Herrman, CEO and President of The TJX Companies, said: “ We believe our strong profitability speaks to the strength and flexibility of our off-price business model, sharp execution of our teams and expense discipline. It was good to see the improved profitability of our international divisions.

"Looking ahead, while we are not immune to macro factors, we are convinced that the flexibility of our off-price business model and the value proposition we offer to a wide range of consumers will continue to serve us well, as we have seen throughout our 46-year history. We are excited about our many initiatives to drive customer traffic and sales for the fall and holiday selling season, and will be emphasising our value leadership in our marketing."