Americans are proving that even when there is economic uncertainty, they still love a good deal. So TJX Companies, Inc., the parent of TJ Maxx, Marshalls, HomeGoods, and Winners, is cashing in.

The off-price retailer reported second-quarter FY2026 earnings on August 20, 2025, and the results show that even with consumers watching their wallets, the company’s bargain-focused outlets are winning.

Even as consumers cut back on discretionary spending, including restaurant meals, travel and big-ticket items, they’re still buying household goods like dog beds and throw pillows, cleaning supplies, and kitchenware — that last item perhaps because they’re cooking more often at home.

And guess what? Every store under the TJX umbrella carries those items in spades.

Shoppers want to see lots of inventory

TJX posted earnings per share of $1.10, beating Wall Street’s expectations and up from $0.96 this time last year. Sales came in at $14.4 billion, nearly 7% higher than a year ago. Comparable store sales rose 4%, a faster pace than the 2% to 3% the company had predicted.

The strongest growth came from HomeGoods (up 5%) and TJX Canada (up 9%), showing that even as people cut back on big-ticket home projects, they’re still shopping for décor and smaller upgrades at bargain prices.

“Our teams across the Company successfully executed our off-price business fundamentals to deliver an exciting treasure hunt of merchandise at great value to our customers, every day,” CEO Ernie Herman said in the company’s earnings call announcement.

Related: Home Depot and Lowe’s share bad pricing news

He credited the company’s appeal to shoppers who want the thrill of finding brand-name merchandise without the department-store price tag.

One detail that stood out: TJX ended the quarter with $7.4 billion in inventory, up from $6.5 billion a year ago. For many retailers, rising inventory can be a warning sign. But for TJX, it seems to be the opposite: The stores are packed with great deals on fresh inventory, which makes people visit often to see what’s new.

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“We are taking advantage of a marketplace out there where you have had store closures and less exciting execution in retail brick and mortar, and that helps us take advantage to drive consistency of our sales,” Herman said in response to an analyst’s question.

TJX buys excess merchandise from department stores and other retailers, stocking its shelves with name brands at a discount.

What TJX results mean heading into the holidays

Even though TJX’s forecast for the current quarter was slightly below Wall Street’s expectations, the company raised its full-year earnings outlook and now expects same-store sales to grow around 3%. That’s a sign management feels confident about the all-important holiday season.

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With more consumers looking to stretch their budgets, off-price chains are likely to benefit. Shoppers who might skip a trip to a department store could still splurge on gifts and home décor if they can find them for less at Marshalls or HomeGoods.

TJX by the numbers

• $14.4 billion: Total sales last quarter, up 6.9% year over year
• 4%: Comparable store sales growth, beating the company’s forecast
• $7.4 billion: Inventory on hand — giving TJX more flexibility to stock shelves with discounted brand-name goods

Bigger picture: Consumers are trading down but not out

Part of the story is about how people are shopping in 2025. Inflation has eased from its peak, but many households remain cautious about spending. Instead of giving up on shopping altogether, they’re “trading down” — looking for the same brands they love, but at lower prices.

For comparison:

• Target’s net sales were down in Q2 2025, with a 0.9% decrease year-over-year; the decline was primarily due to a 1.2% decrease in merchandise sales.
• Home Depot’s DIY transactions are still below pre-pandemic levels: during its fiscal second quarter of 2025 Home Depot reported that transactions dropped 0.9% year-over-year to 446.8 million, according to The Financial Times.

Meanwhile, bargain-focused retailers like TJ Maxx, Marshall’s, and HomeGoods are thriving because they deliver both savings and the excitement of discovery.

If you’re looking for deals this fall, chances are TJX will have them. The company’s strong quarter shows it’s well stocked and ready for the holiday rush. Whether it’s a new set of cookware at HomeGoods, brand-name fashion at Marshalls, or holiday décor at T.J. Maxx, the “treasure hunt” experience is clearly resonating.

For shoppers, that means one thing: more bargains ahead in the coming months.

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