Q1 Earnings Outperformers: Burlington (NYSE:BURL) And The Rest Of The Discount Retailer Stocks

August 05, 2025 at 23:31 PM EDT

BURL Cover Image

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Burlington (NYSE: BURL) and its peers.

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 Q1. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 1.6% below.

Thankfully, share prices of the companies have been resilient as they are up 8.7% on average since the latest earnings results.

Weakest Q1: 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 $2.50 billion, up 6% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations.

BURLINGTON, N.J., May 29, 2025 (GLOBE NEWSWIRE) -- Burlington Stores, Inc. (NYSE: BURL), a nationally recognized off-price retailer of high-quality, branded apparel, footwear, accessories, and merchandise for the home at everyday low prices, today announced its results for the first quarter ended May 3, 2025. Michael O’Sullivan, CEO, stated, “Total Sales increased 6% and Comparable Store Sales were Flat for the first quarter, in line with the midpoint of our guidance. Adjusted EBIT Margin and EPS were ahead of guidance with approximately half of this beat to guidance coming from favorable timing of expenses that will negatively impact Q2.”

Burlington delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 19.9% since reporting and currently trades at $286.50.

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

Best Q1: 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 $576.8 million, up 13.4% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.

Ollie's pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 23.6% since reporting. It currently trades at $138.42.

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

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 $4.98 billion, up 2.6% year on year, exceeding analysts’ expectations by 0.5%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations.

Ross Stores delivered the slowest revenue growth in the group. As expected, the stock is down 6.4% since the results and currently trades at $142.39.

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

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 $13.11 billion, up 5.1% year on year. This number topped analysts’ expectations by 0.7%. Taking a step back, it was a slower quarter as it produced EPS guidance for next quarter missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations.

The stock is down 5% since reporting and currently trades at $128.21.

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

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 $970.5 million, up 19.5% year on year. This result beat analysts’ expectations by 1.3%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.

Five Below delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 11.6% since reporting and currently trades at $135.06.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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

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