Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Macy's (NYSE: M) and the best and worst performers in the general merchandise retail industry.

General merchandise retailers–also called broadline retailers–know you’re busy and don’t want to drive around wasting time and gas, so they offer a one-stop shop. Convenience is the name of the game, so these stores may sell clothing in one section, toys in another, and home decor in a third. This concept has evolved over time from department stores to more niche concepts targeting bargain hunters or young adults, and e-commerce has forced these retailers to be extra sharp in their value propositions to consumers, whether that’s unique product or competitive prices.

The 8 general merchandise retail stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 2.2% above.

Luckily, general merchandise retail stocks have performed well with share prices up 12.8% on average since the latest earnings results.

Macy's (NYSE: M)

With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Macy's reported revenues of $4.89 billion, up 2.1% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and gross margin estimates.

Interestingly, the stock is up 14.7% since reporting and currently trades at $24.85.

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

Best Q1: 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, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

Five Below pulled off the highest guidance raise, fastest revenue growth, and highest full-year guidance raise 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 1.8% since reporting. It currently trades at $218.99.

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

Slowest Q1: Kohl's (NYSE: KSS)

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE: KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Kohl's reported revenues of $3.17 billion, down 2% year on year, in line with analysts’ expectations. Still, it was a satisfactory quarter as it posted a beat of analysts’ EPS estimates.

Kohl's delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 50.4% since the results and currently trades at $19.45.

Read our full analysis of Kohl’s results here.

Dillard's (NYSE: DDS)

With stores located largely in the Southern and Western US, Dillard’s (NYSE: DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Dillard's reported revenues of $1.59 billion, up 2.7% year on year. This print topped analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and a narrow beat of analysts’ gross margin estimates.

The stock is up 12.9% since reporting and currently trades at $601.50.

Read our full, actionable report on Dillard's 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. This result surpassed analysts’ expectations by 2.4%. It was a strong quarter as it also put up an impressive beat of analysts’ gross margin estimates and a beat of analysts’ EPS estimates.

The stock is up 6.6% since reporting and currently trades at $160.57.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.