Sales have been on the rise for TJX UK, the parent company of TK Maxx, with revenue increasing by 10.3% to £3.48 billion in the fiscal year ending in February. Despite this positive growth in sales, the company’s net profits took a hit, decreasing to £84.4 million from £103.4 million during the same period.
The decline in profits can be attributed to a variety of factors, including rising costs of sales, higher administrative expenses, and the lack of income from shares in subsidiaries that had previously contributed £14.8 million in profit. However, despite these challenges, TJX UK has continued to expand its market presence by opening new stores, which has helped boost sales. Furthermore, the company has also seen a 6.3% increase in like-for-like sales, excluding e-commerce.
As a subsidiary of TJX Europe, TJX UK operates TK Maxx stores and a webstore in the UK, as well as Homesense outlets in Britain and Ireland. Despite the tough year, TK Maxx has managed to carve out a larger market share in the fashion industry, surpassing well-known brands like Topshop to become the sixth-largest player in the UK fashion market.
Looking to the future, TK Maxx is optimistic about the availability of quality close-out merchandise, as the pandemic has significantly impacted brands and other retailers. As the retail landscape continues to change and evolve, TK Maxx remains dedicated to providing value to its customers while navigating through these challenging times.
**Useful Links:**
1. TK Maxx owner TJX UK sales up as profits fall in fiscal year
2. TK Maxx leapfrogs Topshop to rank sixth in UK’s fashion market
