TK Maxx defies retail gloom as sales top £3bn
Budget retailer TK Maxx topped £3bn in sales in the last year, shrugging off high street woes with a rise in profit.
US group TJX US, which is the parent owner of the fashion group, has reported a 6.4 per cent rise in sales to £3.1bn in the 12 months to February 2019.
Read more: Will the buyout of Thomas Cook help save its high street stores?
The chain also posted pre-tax profits of £120.5m, rising 38 per cent year-on-year, according to recently-filed results on Companies House.
Operating margins rose from 2.3 per cent to 3.3 per cent.
TK Maxx’s store estate also increased during the period, with its parent owner opening 21 new stores, including eight TK Maxx outlets and 13 of its Homesense fascia.
The rise in sales bucks the current troubles facing many high street retailers in recent years.
A number of high profile companies in the sector have been closing stores, cutting jobs or demanding rent cuts amid pressures on the business.
Read more: Why The Apprentice is actually really good for business
Fashion groups such as Sir Philip Green’s Arcadia, which includes the Topshop brand, have embarked on a controversial insolvency process known as a company voluntary arrangement (CVA) in a bid to slash costs.
Rising competition, higher business rates and a consumer shift towards online spending has contributed towards the current troubles among physical retailers.