TK Maxx sees UK revenue grow but profits slump
Revenues at TK Maxx’s UK owner increased by 10.3%, but profits dived by 35%, reflecting rising labour costs and costs related to its expansion strategy.
TJX UK, the owner of value retail chain TK Maxx and homewares retailer HomeSense, reported in accounts filed at Companies House that revenue for the year ended 28 January 2017 increased to £2.68bn from £2.42bn.
Both TK Maxx and HomeSense experienced increases in sales, but the group’s 10.3% rise in revenue is a slight slowdown compared with last year’s growth of 10.6%.
Additionally, the company’s profit declined to £95.8m from £119.2m a year earlier.
During the 12 months, TJX UK paid £333m in wages and salaries to its 19,000 employees, 15% more than the previous year, with total staff costs rising 17% from £317m to £367m.
Furthermore, TJX UK increased the total store count by 24 new stores, including 19 new TK Maxx sites and 5 new HomeSense stores. There were no store closures during the period.
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