The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how discount retailer stocks fared in Q1, starting with Ollie's (NASDAQ: OLLI).

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 very strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was 2.2% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.9% since the latest earnings results.

Weakest 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 $658.9 million, up 14.2% year on year. This print fell short of analysts’ expectations by 0.7%, but it was still a strong quarter for the company with a solid beat of analysts’ EBITDA and gross margin estimates.

“We are very pleased with our first quarter results and the outstanding performance of our team,” said Eric van der Valk, President and Chief Executive Officer.

Ollie's delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 7.7% since reporting and currently trades at $73.14.

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

Best Q1: 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 $6.01 billion, up 20.6% year on year, outperforming analysts’ expectations by 6.6%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Ross Stores achieved the biggest analyst estimate beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.9% since reporting. It currently trades at $208.83.

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

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 $14.32 billion, up 9.2% year on year, exceeding analysts’ expectations by 2.4%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ EBITDA and gross margin estimates.

TJX delivered the slowest revenue growth in the group. The stock is flat since the results and currently trades at $151.65.

Read our full analysis of TJX’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 $2.86 billion, up 14.1% year on year. This number topped analysts’ expectations by 2.7%. It was a very strong quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Burlington had the weakest guidance update among its peers. The stock is down 3.7% since reporting and currently trades at $314.22.

Read our full, actionable report on Burlington 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 $1.29 billion, up 32.5% year on year. This print surpassed analysts’ expectations by 5.7%. Overall, it was a stunning quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Five Below scored the highest guidance raise, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 20% since reporting and currently trades at $178.25.

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

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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.