TJX Europe, the European parent company of UK off-price retailer TK Maxx, saw profits tumble 76% in the first half of the year.
TJX Europe’s profits dipped to $8m (£5.1m) in the 26 weeks to July 31, down from $34m (£21.9m) in the same period last year. Its second quarter profits, for the last 13 weeks of that period, fell from $24.7m (£15.8m) to $2.1m (£1.3m).
The division saw like-for-like store sales fall 4% in the second quarter. However, its total sales rose from $511.6m (£327.8m) to $528.2m (£338.4m). TJX Europe recorded a sales rise of 11% in the first half from $932m (£599m) to $1.04bn (£669m).
The number of TK Maxx stores in Europe increased from 272 to 283 over the period.
US parent company TJX Companies, which as a whole recorded a pre-tax profit rise of 37% to $1.03bn (£662m) for the first half, said sales in Europe were impacted by foreign currency exchange rates.
TJX Companies said sales rose 11% to $10.08bn (£6.5bn) over the period.
TJX Companies president and chief executive Carol Meyrowitz said: “We are looking forward to the second half of 2010 and remain very confident in our ability to deliver sustainable increases in profit and cash flow over the long term.”