Q4 Earnings Outperformers: Grocery Outlet (NASDAQ:GO) And The Rest Of The Non-Discretionary Retail Stocks

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 Grocery Outlet (NASDAQ:GO) and the best and worst performers in the non-discretionary retail industry.

Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift.

The 7 non-discretionary retail 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 1.2% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q4: Grocery Outlet (NASDAQ:GO)

Due to its differentiated procurement and buying approach, Grocery Outlet (NASDAQ:GO) is a discount grocery store chain that offers substantial discounts on name-brand products.

Grocery Outlet reported revenues of $1.22 billion, up 10.7% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

“We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do, and we’re moving quickly,” said Jason Potter, President and CEO of Grocery Outlet.

Grocery Outlet pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 6.6% since reporting and currently trades at $6.53.

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

Best Q4: Target (NYSE:TGT)

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Target reported revenues of $30.45 billion, down 1.5% year on year, in line with analysts’ expectations. The business had a strong quarter with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $120.61.

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

BJ's (NYSE:BJ)

Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE:BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.

BJ's reported revenues of $5.58 billion, up 5.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 3.4% since the results and currently trades at $96.59.

Read our full analysis of BJ’s results here.

Walmart (NASDAQ:WMT)

Known for its large-format Supercenters, Walmart (NYSE:WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.

Walmart reported revenues of $190.7 billion, up 5.6% year on year. This print met analysts’ expectations. Taking a step back, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.

The stock is down 2.4% since reporting and currently trades at $123.59.

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

Costco (NASDAQ:COST)

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Costco reported revenues of $69.6 billion, up 9.2% year on year. This result topped analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ gross margin estimates but a slight miss of analysts’ EBITDA estimates.

Costco pulled off the biggest analyst estimates beat among its peers. The stock is up 1.3% since reporting and currently trades at $995.93.

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

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