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Sales up at TK Maxx owner

US retail group TJX Companies, which owns discount retailer TK Maxx, has reported steady sales growth for the three months to 29 July.

Net sales rose 6% uplift to $8.4bn (£6.5bn). However, the group’s consolidated pretax profit margin stood at 10.7%, marking a 0.9% fall on the previous year.

Adjusted net sales for the second fiscal quarter at its Europe and Australia operations, known as TJX International, grew 10% to $1.14bn (£886m), while adjusted profit rose to $41m (£32m) from $31m (£24m) last year.

Its profit growth, which excluded currency rates, was driven by a “very strong increase in merchandise margin despite significant headwinds from the year-over-year decline in the British pound”.

The company opened three TK Maxx stores in the UK and Ireland during the quarter.

It said it saw long-term potential to expand to up to 1,100 stores overall with TK Maxx in the UK, Ireland, Germany, Poland, Austria, the Netherlands and Australia.

TJX chief executive and president  said: “Looking ahead, we see exciting opportunities for our business in the second half of the year. We believe we are set up extremely well to take advantage of the abundant buying opportunities in the marketplace.

“We have great liquidity in our inventories and we continue to grow our global sourcing universe of more than 18,000 vendors, as we constantly open new vendor relationships and strengthen our existing ones.”

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