TK Maxx parent company posts slump in profit

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TK Maxx update

The parent company of TK Maxx has recorded a fall in third quarter profits, primarily due to investment in a new UK distribution centre.

In the three months to October 28 reveal an 18.5 per cent drop in adjusted profits to $75 million (£56.8 million).

TJX International – which operates fashion chain TK Maxx in Europe and Australia, as well as homewares retailer Homesense – attributed the reduction in profits to the opening of a new distribution centre in Knottingley, Wakefield, which opened in August.

Meanwhile, net sales on a constant currency basis rose by nine per cent to $1.2 billion (£900 million), compared with the same quarter last year.

Like-for-like store sales inched up by one per cent.

TJX International also opened seven new TK Maxx stores in the UK and Ireland during the third quarter, bringing its total regional store count to 363.

The news comes as its US-based holding company, TJX Companies, posted flat consolidated like-for-like store sales rate compared to last year’s five per cent increase.

It blamed the latest quarterly result on store closures brought about by hurricanes and unfavourable weather conditions.

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