TJX, parent company of TK Maxx, has raised its profit outlook following a boost in sales.

TK Maxx sign

TK Maxx’s results were “well above expectations”

In the first quarter to May 4, overall store sales grew 3%, which the group said were “entirely driven” by a rise in customer transactions.

Net sales were up 6% compared with the same period last year, reaching $12.5bn (£9.82bn). 

Its TJX international arm, covering Europe and Australia, saw a 7% growth in sales on a constant currency basis to $1.5bn (£1.18bn).

TJX Canada sales increased 8% on a constant currency basis to $1.1bn (£0.86bn).

The group’s pretax profit margin was increased to 11.1% from 10.3% during the first quarter last year.

TJX expects store sales to be up 2% to 3% and for pretax profit margin to be in the range of 11% to 11.1% in the coming financial year.

TJX companies president and chief executive Ernie Herrman said: “Overall comp store sales increased 3%, at the high-end of our plan, and both profitability and earnings per share were well above our expectations. 

“Our teams across the company executed on our initiatives and were laser-focused on delivering consumers exciting values on great brands and fashions and a treasure-hunt shopping experience, every day. 

“We saw comp sales growth at every division entirely driven by customer transactions, which underscores the strength of our value proposition. This also gives us confidence in our ability to gain market share across all of our geographies. 

“The second quarter is off to a good start and we see numerous opportunities for our business for the balance of the year that we plan to pursue. 

“Longer term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share and increase the profitability of TJX.”