Profits have fallen and comparable sales growth has dramatically slowed at TK Maxx’s UK division as the discounted clothes retailer’s wage costs went up and it grappled with a slowdown on the country’s high streets.
TJX UK, which consists of TK Maxx, HomeSense and tkmaxx.com, revealed in accounts filed at Companies House that it recorded a profit of £95.8m in the year to January 28. This is down from £119.2m the previous year. Statutory pre-tax profits at TK Maxx UK have also fallen from £142.3m to £111.4m during the period.
While the American chain’s UK sales jumped by 10.3% to £2.68bn, its UK store like-for-like sales rose by only 0.6%, compared with a rise of 4.6% the year before.
