Let’s dig into the relative performance of TJX (NYSE:TJX) and its peers as we unravel the now-completed Q4 discount retailer earnings season.

Discount retailers understand that many shoppers love a good deal, and they focus on providing excellent value to shoppers by selling general merchandise at major discounts. They can do this because of unique purchasing, procurement, and pricing strategies that involve scouring the market for trendy goods or buying excess inventory from manufacturers and other retailers. They then turn around and sell these snacks, paper towels, toys, clothes, and myriad other products at highly enticing prices. Despite the unique draw and lure of discounts, these discount retailers must also contend with the secular headwinds of online shopping and challenged retail foot traffic in places like suburban strip malls.

The 5 discount retailer stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.3% below.

In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.

TJX (NYSE:TJX)

Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE:TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.

TJX reported revenues of $16.35 billion, flat year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations.

Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am very proud of the performance of our hard-working Associates in 2024. We delivered outstanding top-and bottom-line results that exceeded our guidance for the year. We surpassed $56 billion in annual sales, drove a 4% comparable store sales increase, significantly increased profitability, and opened our 5,000th store during the year.”

TJX pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3.9% since reporting and currently trades at $127.49.

Is now the time to buy TJX? Access our full analysis of the earnings results here, it’s free.

Best Q4: Five Below (NASDAQ:FIVE)

Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ:FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.

Five Below reported revenues of $1.39 billion, up 4% year on year, outperforming analysts’ expectations by 1%. The business had a satisfactory quarter with EPS guidance for next quarter exceeding analysts’ expectations.

Five Below achieved the highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $75.01.

Is now the time to buy Five Below? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Ross Stores (NASDAQ:ROST)

Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.

Ross Stores reported revenues of $5.91 billion, down 1.8% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.

Ross Stores delivered the slowest revenue growth in the group. Interestingly, the stock is up 2.3% since the results and currently trades at $139.13.

Read our full analysis of Ross Stores’s results here.

Burlington (NYSE:BURL)

Founded in 1972 as a discount coat and outerwear retailer, Burlington Stores (NYSE:BURL) is now an off-price retailer that has broadened into general apparel, footwear, and home goods.

Burlington reported revenues of $3.28 billion, up 4.8% year on year. This number topped analysts’ expectations by 0.9%. Taking a step back, it was a slower quarter as it produced EPS guidance for next quarter missing analysts’ expectations.

Burlington achieved the fastest revenue growth among its peers. The stock is down 6.5% since reporting and currently trades at $222.08.

Read our full, actionable report on Burlington here, it’s free.

Ollie's (NASDAQ:OLLI)

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ:OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Ollie's reported revenues of $667.1 million, up 2.8% year on year. This result came in 1.2% below analysts' expectations. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.

Ollie's had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 9.2% since reporting and currently trades at $108.14.

Read our full, actionable report on Ollie's here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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