The situation: TJX is thriving as shoppers flock to its off-price value proposition.

The numbers:

• Q2 sales rose 7% YoY (6% constant currency) to $14.4 billion, topping analysts’ estimates of $14.17 billion.
• Adjusted EPS climbed 15% YoY to $1.10, beating the $1.01 expected.
• Comparable sales grew 4% YoY, ahead of the 3.1% forecast.

While the retailer had expected its Q2 results would be hurt by additional tariffs affecting orders it had already committed to, those costs were lower than expected.

What’s driving it: Customer transactions rose across all divisions, fueled by strong US and international demand.

• As shoppers look for ways to stretch their dollars, TJX is gaining ground with its mix of accessible brands and treasure-hunt shopping.
• “Our teams are energized by the opportunities we see in the marketplace for excellent brands and fashions and our initiatives to keep attracting shoppers to our retail brands,” said CEO Ernie Herrman in a statement. “Longer term, we are convinced that we have a long runway ahead to capture additional market share and continue our successful growth around the world.”

Looking ahead: The company, which said Q3 is off to a “strong start,” raised its full-year guidance in the wake of the latest results.

• TJX now expects full-year fiscal 2026 earnings will be between $4.52 and $4.57 per share, up from its prior guidance of $4.34 to $4.43.
• The retailer also raised its comparable sales expectations to a 3% increase, versus prior guidance of a 2% to 3% rise. The new view assumes the current US tariff rates will remain in effect for the rest of the year.

Our take: Off-price retailers like TJX’s T.J. Maxx and Marshalls are poised to thrive this holiday season, when consumers are likely to be both budget-minded and eager for discovery.

• TJX’s model allows it to avoid much of the tariff pain weighing on full-price retailers, since it sources excess merchandise at steep discounts.
• At the same time, retailers frontloading inventory in anticipation of tariff impacts may unintentionally flood the off-price channel with fresh product.
• That could create a double advantage heading into Q4: sharper values for shoppers, and a “treasure hunt” experience that can pull traffic away from department stores and specialty chains at a time when promotional intensity will be fierce.