Retail group TJX Companies, owner of the TK Maxx brand, has reported sales increases in all international segments apart from in Europe, according to full-year results published today.
TJX Europe, made up of 307 TK Maxx stores and 24 HomeSense outlets, saw comparable store sales fall six per cent in the fourth quarter ending January 29th 2011.
Across the whole group sales increased four per cent in the full-year to $21.94 billion (£13.55 billion), but TJX European sales for the 12 months dropped three per cent.
Carol Meyrowitz, CEO of TJK, said: “I am very proud of our results in 2010 as consolidated comparable store sales increased four per cent on top of a six per cent increase last year and our bottom line grew substantially over extraordinary growth in the prior year.
“I am even prouder of our company’s ability to grow our revenues and earnings year after year, through economic downturns and upturns. This speaks to the extraordinary flexibility of our off-price business model and our ability to successfully utilise that flexibility to our advantage.”
TK Maxx has 240 stores across the UK & Ireland but earlier this week admitted that it is closing a store in Lisburn near Belfast in Northern Ireland on June 3rd.
The retail group opened 44 stores across Europe during the last year, on the back of a five per cent increase in sales in the 12 months to January 2010, but with total sales decreasing by over $200 million this year that expansion id likely to be scaled back.
Mevrowitz added: “The company estimates earnings per share growth to be lower in the first quarter than in the full year due to far more challenging year-over-year comparisons in the first quarter, particularly for its European business, as well as the timing of certain expense items.
“We remain firmly committed to distributing excess cash to shareholders while investing in the growth of our businesses and maintaining financial flexibility.”