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TK Maxx targets more UK stores as profits rise

TJX Europe plans to open a further 18 TK Maxx stores in the UK and Ireland by the end of January 2015 and is looking to expand into Austria for the first time next year.

T he new stores will bring the total in the UK and Ireland to 309. Three stores opened in the three months to April – in Nottingham, and Hove and Eastbourne in East Sussex – and a further two in the second quarter, in Leigh in Lancashire, and the Ilac Centre in Dublin.

TJX Europe also has 68 TK Maxx stores in Germany and 23 in Poland, taking its European portfolio to 400, as well as 28 Homesense stores in the UK and Ireland. In the long term, the retailer’s plans remain to have 875 stores across its existing European territories and it is hoping to open its first stores in Austria next year, but could not say how many it will target.

In a statement, the company said it “remains confident in its potential to expand to up to 875 stores overall with TK Maxx in the UK, Ireland, Germany and Poland, and HomeSense in the UK, without factoring in the opportunity to ultimately expand into other European countries [such as Austria]”.

Earlier this year, sources told Drapers the business was looking for more prime locations in central London, following the successful opening of TK Maxx in Covent Garden last October, but a TJX Europe spokeswoman declined to comment on this.

TJX Europe posted another strong performance in the second quarter of this financial year to August 2. Adjusted profits rose 19% from $39m (£23.5m) in the second quarter of 2013 to $46m (£27.7m) in the same period this year.

Like-for-like sales increased 6%, the same rate as in last year’s second quarter. Adjusted net sales for the second quarter rose 13% year onyear from $778m (£468.6m) to $875m (£527m). The company did not provide a breakdown for TK Maxx and HomeSense.

Carol Meyrowitz, chief executive of TJX Companies, which owns TJX Europe, said: “Our customer traffic gained momentum throughout the quarter and was positive in July. Further, we are pleased with our solid merchandise margins as well as the improved performance of our apparel businesses.

“We are now raising our full-year adjusted earnings per share guidance to reflect our above-plan second quarter results. The third quarter is off to a solid start and we are excited about our opportunities for the second half of the year.”

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