Pre-tax profits at the operator of clothing and homeware retailer, TK Maxx last year increased more than 13-fold to €5.54 million.
New accounts filed by TJX Ireland UC show that profits increased by 1,282 per cent to €5.54 million as revenues rose by €52.94 million or 36 per cent from €146.87 million to €199.8 million in the 12 months to the end of January 29th last.
The directors state that during last year, the company’s operations continued to be significantly impacted by Covid-19 with the firm’s ‘bricks and mortar’ stores shut for 29 per cent of last year compared to 46 per cent of 2020.
The directors state that the closures significantly impacted the company's cash position and the company continued to incur operating expenses in relation to Covid-19 health and safety protocols.
The firm operates the TK Maxx and Homesense brands and last year increased the number of TK Maxx stores by one to 27 while the number of Homesense stores remained the same at two.
The directors state that the revenue increase was driven by fewer Covid-19 related temporary store closures last year compared to 2020.
The directors state that after stores re-opened the company achieved positive comparable open only store sales and cash generated from operations increased by €26.16 million when compared with the prior year.
The majority of the firm’s employees received Government Covid-19 wage subsidies during closure periods last year and the accounts show that €5.03 million was received in Covid-19 wage subsidies last year and this compares to €7.57 million under that heading in 2020.
The US headquarter business recorded operating profits of €5.77 million after the €5.03 million Covid-19 supports are taken into account.
Numbers employed by the group increased from 1,141 to 1,476.
On the impact of Brexit, the directors state all merchandise sold at its Irish stores is sourced from the parent company’s distribution centres in England.
The directors state that post Brexit, the company continues to pay import customs duties “and this has significantly increased the cost of doing business in the Republic of Ireland”.
In addition, regulatory and compliance requirements continue to affect the flow of goods into Irish stores.
The breakdown of revenues shows that TK Maxx generated €191.15 million in revenues and €8.66 million was recorded at Homesense revenues.
Staff costs at the business last year increased from €28.27 million to €30 million.
The profit last year takes account of non-cash depreciation costs of €3.3m while rent costs increased from €10.29 million to €11 million while ‘other lease costs’ totalled €2 million.
At the end of January 29th last, the firm’s accumulated profits totalled €38.92 million. The firm's cash funds last year increased from €43.87m to €46.12m.
