Profits at TK Maxx in the UK have tumbled, due to the costs of expanding the business.

TJX UK, which owns the TK Maxx, HomeSense and tkmaxx.com brands, recorded a total profit of £95.8 million in the year to January 28, down from £119.2 million the previous year, as reported by Retail Gazette. 

Operating profit plummeted 34.5 per cent to £90.3 million over the same period of time.

However, the company's sales grew 10.3 per cent from £2.43 billion to £2.68 billion during the year, with UK store like-for-like sales growing at a slower rate of 0.6 per cent, compared to 4.6 per cent the previous year.

TJX UK's results were hit by a 15.8 per cent rise in salaries, as well as the opening of 19 new TK Maxx stores, five HomeSense stores and a new processing centre in Wakefield last year.

Known for selling designer brands at budget prices, TK Maxx has 323 stores in the UK, including Cheltenham and Gloucester. There are also HomeSense stores in both Gloucester and Cheltenham.