TK Maxx owner’s sales hit by ‘historical’ inflation
US sales fell by 3.2% to $9.1bn (£7.5bn), Europe and Australia net sales dropped 1.5% to $1.5bn (£1.24bn), while Canada net sales grew by 20% to $1.2bn (£1bn)
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TK Maxx owner, The TJX Companies, has revealed net sales for the second quarter of Fiscal 2023 ended July 30 2022 decreased 2% to $11.8bn (£9.9bn).
It comes as US sales fell by 3.2% to $9.1bn (£7.5bn), Europe and Australia net sales dropped 1.5% to $1.5bn (£1.24bn), while Canada net sales grew by 20% to $1.2bn (£1bn).
Net income for the second quarter of Fiscal 2023 was $809m (£681m), and diluted earnings per share were $.69 (£.58) versus $.64 (£.54) per share in the second quarter of Fiscal 2022, which included a debt extinguishment charge of $.15 (£.13) per share.
For the second quarter of Fiscal 2023, the company’s pretax profit margin was 9.2% which was above its plan and versus last year’s second quarter pretax profit margin of 8.7%.
Meanwhile, second quarter Fiscal 2023 pretax profit margin was down 1.5% versus last year’s second quarter adjusted pretax profit margin of 10.7%, which excluded a 2% negative impact due to a debt extinguishment charge.
Gross profit margin for the second quarter of Fiscal 2023 was 27.6%, a 1.8% decrease versus the second quarter of Fiscal 2022.
Ernie Herrman, chief executive officer and president of The TJX Companies, said: “I want to start by recognising the dedication and commitment of our talented Associates who bring outstanding values on branded, quality merchandise to our customers every day. As to our results, I am very pleased that our second quarter pretax profit margin exceeded our plan and earnings per share were at the high end of our guidance.
“We believe our strong profitability speaks to the strength and flexibility of our off-price business model, sharp execution of our teams, and expense discipline. As to the top-line, U.S. comp sales for the second quarter came in lighter than we expected as we believe historically high inflation impacted consumer discretionary spending.”
He added: “Looking ahead, while we are not immune to macro factors, we are convinced that the flexibility of our off-price business model and the value proposition we offer to a wide range of consumers will continue to serve us well, as we have seen throughout our 46-year history.”
