• Net income up 14% to US$348m
  • Net sales rise 8% to $5.5bn
  • CEO signals “significant increase” to marketing penetration

Cut-price retail group The TJX Companies posted a double-digit increase in second quarter net profit, buoyed by sales growth and a recovery in its European business.

Comparable store sales were up 4% in the three months to 30 July, while gross margins rose to 27.3% from 26.6% last year. The US company’s European operations staged a recovery, more than tripling their net profit to $7.3m.

The strong performance prompted TJX to raise its full-year earnings per share guidance to $3.73-3.86, based on comparable store sales growth of 2-3%.

“Customer traffic continues to be up over large increases in the last two years, as our tremendous values attract new and loyal customers,” said Carol Meyrowitz, company CEO.

“In addition, we will be significantly increasing our marketing penetration in the second half of the year, leveraging our marketing spend, which we believe will also draw consumers to our stores.”