Off-Price Retail Scorecard: Ranking OLLI, FIVE, BURL, TJX, and ROST on Growth and Margins
Data as of: Fiscal years ending January 2026 (TJX, ROST, BURL) and TTM through November 2025 (OLLI, FIVE)
Off-price and value retail remains one of the most resilient corners of consumer discretionary, but the five major public players are diverging sharply on growth trajectories and profitability. Here's how they stack up.
Revenue Scale and Growth
TJX dominates on absolute scale at $60.4 billion in fiscal 2026 revenue, more than 2.5x runner-up Ross Stores at $22.8 billion. But the growth crown belongs to the smaller players.
| Company | TTM Revenue | Revenue Growth (TTM) | 3-Year CAGR | 5-Year CAGR | Rank (TTM Growth) |
|---|---|---|---|---|---|
| FIVE | ~$4.4B | 15.8% | 10.8% | 16.0% | #1 |
| OLLI | ~$2.5B | 12.6% | 9.0% | 10.0% | #2 |
| BURL | ~$11.6B | 8.8% | 10.0% | 15.0% | #3 |
| ROST | ~$22.8B | 7.7% | 6.8% | 12.7% | #4 |
| TJX | ~$60.4B | 7.1% | 6.5% | 13.4% | #5 |
Five Below leads on TTM revenue growth at 15.8%, fueled by aggressive store expansion into new markets. Ollie's Bargain Outlet follows at 12.6%, punching above its weight as the smallest player by revenue. Burlington rounds out the double-digit club on a 3-year basis at 10.0% CAGR. TJX and Ross, as the two incumbents with $20B+ revenue bases, are naturally decelerating but still growing respectably at 7%+.
Margin Profile: A Tale of Two Models
The margin comparison reveals meaningful differences in business models. Ollie's and Burlington post the highest gross margins (above 40%), reflecting their closeout-heavy merchandising mix, while Ross operates on thinner gross margins but converts more efficiently to operating profit.
| Company | Gross Margin (TTM) | Operating Margin (TTM) | Net Margin (TTM) | FCF Margin (TTM) | Rank (Op Margin) |
|---|---|---|---|---|---|
| TJX | 31.1% | 12.0% | 9.1% | 8.0% | #1 |
| ROST | 27.9% | 11.9% | 9.4% | 9.7% | #2 |
| OLLI | 40.3% | 11.2% | 8.8% | 6.1% | #3 |
| BURL | 41.9% | 8.9% | 5.3% | 2.0% | #4 |
| FIVE | 35.6% | 8.9% | 7.0% | 7.3% | #5 |
TJX and Ross are the clear margin leaders on an operating basis, demonstrating the leverage advantages of scale. TJX's 12.0% operating margin on a $60B revenue base is particularly impressive — the company has expanded this metric from 9.7% three years ago to nearly 12% today. Ross matches at 11.9% with the best net income margin in the group at 9.4%.
Ollie's stands out with 40.3% gross margins and 11.2% operating margins — the best margin conversion among the smaller players. Burlington's 41.9% gross margin is the highest in the group, but heavy SG&A spending compresses operating margins to just 8.9%. Note that Burlington's FY2025 operating margin actually declined year-over-year (7.3% vs. 9.8%), a concerning trend worth monitoring.
Profitability and Returns
Return on equity separates the capital-efficient operators from the rest.
| Company | ROE (TTM) | ROIC (TTM) | EPS Growth (TTM) | EPS CAGR (3Y) | Rank (ROE) |
|---|---|---|---|---|---|
| TJX | 53.9% | 22.3% | 13.7% | 17.7% | #1 |
| BURL | 33.8% | 13.2% | 21.9% | 39.4% | #2 |
| ROST | 33.1% | 23.2% | 4.9% | 14.8% | #3 |
| FIVE | 15.8% | 9.9% | 15.2% | -2.5% | #4 |
| OLLI | 12.2% | 11.3% | 7.7% | 10.1% | #5 |
TJX's 53.9% ROE is best-in-class, driven by a combination of strong margins and efficient capital structure. Ross's 23.2% ROIC edges out the group on invested capital efficiency. Burlington shows the most dramatic earnings recovery with 39.4% EPS CAGR over three years and 21.9% TTM growth as the company continues its post-pandemic margin rebuild. Five Below's negative 3-year EPS CAGR (-2.5%) reflects the profit headwinds from its rapid expansion strategy.
Valuation
| Company | P/E (Fwd) | EV/EBITDA (TTM) | P/S (TTM) | PEG (TTM) | Rank (Fwd P/E) |
|---|---|---|---|---|---|
| OLLI | 23.1x | 19.7x | 2.5x | — | #1 (Cheapest) |
| BURL | 27.3x | 18.7x | 1.7x | — | #2 |
| ROST | 29.5x | 19.5x | 3.0x | — | #3 |
| TJX | 30.9x | 23.2x | 2.9x | — | #4 |
| FIVE | 31.5x | 23.3x | 2.7x | — | #5 (Priciest) |
Ollie's trades at the steepest discount on forward P/E (23.1x) despite posting the second-fastest revenue growth and third-best operating margins. Burlington offers attractive relative value at 27.3x with the lowest EV/EBITDA (18.7x) and lowest P/S (1.7x) in the group. TJX and Five Below command the richest multiples at ~31x forward earnings.
Key Takeaways
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TJX is the quality compounder. Highest operating margin (12.0%), highest ROE (53.9%), and steadily expanding profitability. The premium valuation at 30.9x forward earnings is justified by consistency — it has beaten revenue estimates in 12 of the last 12 quarters.
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Ollie's is the best value play. At 23.1x forward P/E with 12.6% revenue growth and 11.2% operating margins, OLLI offers the most attractive risk/reward. The smallest player has room to grow its 500+ store footprint significantly.
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Burlington has the most upside — and risk. The 39.4% EPS CAGR and falling FY2025 operating margins create a mixed picture. If BURL can stabilize margins while sustaining store growth, 27.3x forward earnings is reasonable.
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Five Below is the most expensive for what you get. At 31.5x forward P/E with negative 3-year EPS growth and sub-9% operating margins, the market is pricing in a growth trajectory that has yet to translate to bottom-line results.
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Ross is the steady hand. 11.9% operating margins, 33% ROE, and the best FCF margin (9.7%) make ROST a reliable compounder, though 29.5x forward P/E leaves limited margin of safety.
Who to Own
TJX for quality at scale, OLLI for growth at a discount. TJX's expanding margins and unmatched capital efficiency make it the core holding, while Ollie's valuation gap versus its growth profile creates the best upside asymmetry.
Who to Avoid
Five Below at current valuations. The stock commands the highest forward P/E in the group despite the weakest 3-year earnings track record. Wait for margin proof before paying 31.5x.
What to Watch
All five retailers report spring quarters through May-June 2026. Key catalysts: (1) BURL's margin trajectory — can the company arrest the FY2025 operating margin decline? (2) FIVE's Q4 FY2025 results (due March 2026) for evidence of margin stabilization. (3) OLLI's continued store expansion cadence and comp store sales trends.
Sources: Company filings for TJX (FY ending Jan 2026), ROST (FY ending Jan 2026), BURL (FY ending Jan 2026), OLLI (FY ending Jan 2025 + Q3 FY2025), FIVE (FY ending Jan 2025 + Q3 FY2025). Market data as of March 2026.