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TK Maxx owner, TJX Companies, has revealed it has upped its FY profit guidance after its comparable store sales increased 4% during the second quarter of the year.
It reported net sales for the second quarter of $13.5bn (£10.2bn), an increase of 6% versus the second quarter of Fiscal 2024. It also posted Q2 pretax profit margin of 10.9%, up 0.5 percentage points versus last year and well above the company’s plan.
It comes as the company generated $1.6bn (£1.2bn) of operating cash flow and ended the quarter with $5.3bn (£4bn).
Looking ahead, it said it is planning consolidated comparable store sales to be up 2% to 3%, pretax profit margin to be in the range of 11.8% to 11.9%, and diluted earnings per share to be in the range of $1.06 to $1.08 (£0.81 – £0.82).
It has also increased its outlook for pretax profit margin to be approximately 11.2% and increased its diluted earnings per share outlook to be in the range of $4.09 to $4.13 (£3.12 – £3.15).
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 4%, pretax profit margin, and earnings per share all exceeded our plans. 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.
The performance of Marmaxx, our largest division, was outstanding, with a comp sales increase of 5%. With our strong second quarter results, we are raising our full-year guidance for both pretax 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.”
He added: “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.”
