The US trading group TJX Companies Inc. achieved a small increase in sales in the first quarter of the 2023/24 financial year. The world’s largest off-price provider, which is represented in Germany with its TK Maxx chain, was even able to increase profits significantly and exceed expectations.
According to the interim report released on Wednesday, consolidated sales for the three months ended April 29 reached $11.8 billion (EUR 10.9 billion), up 3.3 percent year-on-year.
Thanks to lower freight costs and a more efficient purchasing policy, margins improved and ensured that net profit increased by 51.8 percent to 891 million US dollars (823 million euros). In the same quarter of the previous year, however, the result was impacted by high value adjustments resulting from the sale of a minority stake in the Russian retailer Familia.
Given the surprisingly strong results in the first quarter, management raised its earnings guidance for the full year. Diluted earnings per share target increased to $3.49-$3.58 from $3.39-$3.51. In terms of sales, the company continues to expect like-for-like growth of two to three percent.