‘Solid’ year at TK Maxx
TJX reports sales in line with expectations
UK value fashion chain TK Maxx has turned in a ‘solid’ performance for parent group TJX despite the tough market for UK clothing retailers across 2004.
In the year to January 29, total sales at TK Maxx reached $1.3bn, which TJX said was in line with company expectations. Comparable store sales increased by 3 per cent, boosted to 14 per cent in US dollars by favourable exchange rates. Segment profit of $77m was up 31 per cent year-on-year, but below group expectations.
Edmond English, president and chief executive of TJX, said that TK Maxx had a “solid year”, with profit margin flat “despite below-plan comparable store sales, as this division managed inventories and expenses very well”.
He added: “Considering the UK’s weak retail environment in December, TK Maxx did a very good job of managing its inventories during this highly promotional cycle. TK Maxx increased its selling square footage by 23 per cent in 2004 and added 23 stores to end the year with 170 stores. We plan to open 23 TK Maxx stores in 2005 and increase this division’s selling square footage by 19 per cent.”
Across the year, total group sales increased by 12 per cent and comparable store sales by 5 per cent. TKX opened 162 stores during 2004 to bring its worldwide total to 2,224.
