TJX Companies Outperform Target as Shoppers Flock to Discounted Retailers

TJX Companies, the parent company of T.J. Maxx, Marshalls, and HomeGoods, reported an 8% increase in sales and a 23% rise in profits for its fiscal second quarter. The company raised its full-year outlook, citing high customer traffic and a surplus of premium merchandise obtained from retailers looking to offload excess inventory. In contrast, Target reported a decline in sales of discretionary items like clothing and home decor, and lowered its full-year forecast due to consumer pressure from high inflation. TJX's success can be attributed to cash-strapped consumers seeking deals and splurging on name brands and home goods at off-price retailers.