US clothing discounter TJX Companies Inc reported first-quarter revenue growth after raising prices in the face of rising costs.
Net sales for the first quarter of fiscal 2023 were $11.4 billion, an increase of 13 percent from the same quarter last year. Net income was $587 million, the mother of off-price chain Tk Maxx announced on Wednesday.
TJX increased pre-tax profit margin to 9.4 percent after spending slumped amid the Covid pandemic and “heavy price hikes.” On the other hand, rising freight and labor costs weighed on profitability.
“For the full year, we see an opportunity to further improve our profitability,” said Managing Director Ernie Herrman in the annual report. “We remain focused on our long-term vision of becoming an increasingly profitable $60+ billion company.”
For the year as a whole, TJX expects like-for-like sales to increase by between 1 and 2 percent. The pre-tax profit margin should be 9.2 to 9.4 percent.