TK Maxx’s parent company has raised its profit guidance following a rise in sales

2024.08.26

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The parent company of TK Maxx, TJX, has raised its profit guidance after sales across all units of the business increased.

In the second quarter ending August 3, 2024, TJX reported a 6% year-on-year rise in sales to $13.5bn (£10.2bn). Comparable store sales rose 4% in the same period.

Sales across TJX International, which includes Europe and Australia, increased by 3% on a constant currency basis to $1.67bn (£1.27bn) compared with the same quarter last year.

TJX Canada sales grew by 4% on a constant currency basis to $1.24bn (£945m).

The group’s pre-tax profit margin reached 10.9%, up from 10.4% during the second quarter last year.

TJX expects store sales to be up by 2% to 3% in the third quarter, with pre-tax profit margin between 11.8% to 11.9%.

TJX president and chief executive Ernie Herrman said: “Our teams sharply executed on our mission to deliver great value to consumers every day. Our overall comp sales growth was entirely driven by customer transactions, which increased at every division. 

“With our strong second-quarter results, we are raising our full-year guidance for both pre-tax profit margin and earnings per share. The third quarter is off to a strong start. 

“We see excellent buying opportunities in the marketplace and are strongly positioned to ship fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons. 

“We marked a milestone for our company in the second quarter by opening our 5,000th store. Longer term, we are excited about our potential to capture additional market share in all of our geographies and to continue our global growth, while delivering great value to more consumers around the world and driving the profitability of TJX.”