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The UK arm of TJX Companies, TK Maxx, has raised its profit guidance for the full-year following a 8% year-on-year increase in sales to $12.8bn (£10bn) for the second quarter ended 29 July.
During this period, the group’s pre-tax profit margin also rose by 1.2% to 10.4% from last year’s 9.2% total.
The discount fashion retailer attributed this to lower freight costs, which increased its net income by 22% to $989m (£777m).
According to the company, trading in the third quarter has had a “very strong start” so far, driven by buoyant off-price buying opportunities for the discount retailer.
Ernie Herrman, CEO and president of the TJX Companies, said: “I am extremely pleased with our second quarter performance. Our comparable store sales increase of 6%, pre-tax profit margin, and earnings per share all significantly exceeded our plans. Our overall comp sales growth was driven by customer traffic, which increased at every division.
“With our above-plan results, we are raising our full-year outlook for comparable store sales, pre-tax profit margin, and earnings per share. The third quarter is off to a very strong start and we are seeing tremendous off-price buying opportunities in the marketplace.”
He added: “We are in an outstanding position to continue shipping fresh and compelling merchandise to our stores and online, throughout the fall and holiday selling seasons.”
