ROST|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q2'27 | $1.93 | - | - |
| Q1'27 | $1.79 | $2.02 | +12.6% |
| Q3'25 | $1.42 | $1.58 | +10.9% |
| Q2'25 | $1.54 | $1.56 | +1.4% |
| Q1'25 | $1.43 | $1.47 | +2.5% |
| Q4'24 | $1.66 | $1.79 | +7.9% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q2'27 | $6.3B | - | - |
| Q1'27 | $5.7B | $6.0B | +4.6% |
| Q3'25 | - | $5.6B | - |
| Q2'25 | - | $5.5B | - |
| Q1'25 | - | $5.0B | - |
| Q4'24 | - | $5.9B | - |
Market Data
ROST Stock Snapshot
ROST is currently trading at $255.19, giving Ross Stores, Inc. a market cap of 81.54B and a P/E ratio of 35.2. Today's range spans $251.00–$255.98, with shares opening at $253.36 and moving down $0.03 (0.0%) from the prior close. DailyIQ's technical score sits at 91/100 (BUY) with a news sentiment reading of 50/100.
Over the past year ROST has traded between $143.39 and $257.00 - the current price is +78.0% off the 52-week low and -0.7% from the high.
ROST is scoring 91/100 technically (BUY) and sits at $255.19 - near 52-week highs in its $143.39–$257.00 annual range. Sentiment at 50/100 is neutral. At 81.54B in Consumer Cyclical market cap The current P/E ratio stands at 35.2., this is the tier where earnings revision cycles have the most impact on price: upward revisions in a large-cap company with bullish momentum tend to attract analyst upgrades, which in turn attract new institutional mandates.
What makes ROST's BUY setup (91/100) particularly actionable at 81.54B in Consumer Cyclical capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $255.19 (near 52-week highs in $143.39–$257.00), with sentiment running neutral at 50/100, the setup rewards conviction-sized positioning more than it does speculative small bets.
Company Insights: Ross Stores, Inc. (ROST)
Ross Stores, Inc. operates as a leading off-price retailer in the United States, focusing on apparel and home fashion through its Ross Dress for Less and dd's DISCOUNTS brands. The company's core strategy revolves around delivering value to consumers by offering quality merchandise at significantly lower prices than traditional retailers. This approach targets a broad customer base, particularly middle-income and lower-to-moderate-income households seeking attractive deals on branded goods.
The company has demonstrated a consistent pattern of exceeding analyst expectations for earnings per share (EPS) across recent reporting periods. For instance, Q3 2025 saw EPS of $1.58, surpassing the estimate of $1.42473, and Q2 2025 reported $1.56 against an estimate of $1.53912. This trend of beating EPS estimates underscores the company's operational efficiency and its ability to manage costs effectively within its off-price model.
Recent performance highlights strong momentum, with total sales increasing 12.2% year-over-year in the fourth quarter, accompanied by a 9% acceleration in comparable store sales. Management's confidence is further reflected in an increased quarterly dividend and a substantial share repurchase authorization. Strategic expansion remains a priority, with plans to open 110 new stores in 2026, indicating a commitment to continued growth and market penetration.
Off-Price Advantage
Ross Stores leverages an off-price model to offer branded apparel and home goods at discounts compared to traditional retailers.
This value proposition appeals strongly to its target demographic of middle-income and lower-to-moderate-income households.
The strategy allows for consistent customer traffic and sales, even amidst broader economic fluctuations affecting consumer spending.
Earnings Consistency
The company has a proven track record of exceeding analyst earnings per share (EPS) estimates in recent quarters.
Q3 2025 EPS of $1.58 beat expectations, following similar beats in Q2 and Q1 2025.
This consistent outperformance suggests effective operational management and strong demand for its value-oriented merchandise.
Growth Expansion
Ross Stores is actively pursuing physical expansion, with plans to open 110 new locations in 2026.
Recent store openings in Southern California and the expansion of 17 new locations signal ongoing strategic growth initiatives.
This aggressive store rollout indicates management's confidence in sustained demand and market share gains.
Shareholder Returns
Management has demonstrated a commitment to returning capital to shareholders through dividends and buybacks.
A substantial new share repurchase program has been authorized, alongside an increased quarterly dividend.
These actions reflect financial strength and a focus on enhancing shareholder value.
Positioning ROST
Ross Stores' consistent earnings beats and strategic expansion plans present a compelling case for investors seeking exposure to the value retail segment. Adding to positions may be warranted following strong quarterly reports or positive updates on store rollout progress. Conversely, investors might consider reducing exposure if there are signs of slowing consumer demand for off-price goods or if competitive pressures intensify significantly.
Key Metrics for ROST
Ross Stores' performance hinges on its ability to attract value-conscious shoppers and manage inventory effectively. Key metrics will reveal the strength of its off-price model and expansion strategy.
Comparable Store Sales: Measures sales growth from existing stores, excluding new openings and closures. Accelerating comp sales indicate strong consumer demand for Ross Stores' offerings; deceleration suggests weakening traffic or inventory issues. This is a primary driver of ROS T's revenue and profitability.
Gross Margin: Reflects the profitability of Ross Stores' merchandise after accounting for the cost of goods sold. Expanding margins signal effective inventory management and strong pricing power; contracting margins may indicate increased markdowns or higher inventory costs. Crucial for ROS T's overall profitability and ability to fund growth.
Inventory Turnover: Indicates how quickly Ross Stores sells and replaces its inventory. A higher turnover rate suggests efficient inventory management and strong sales; a declining rate can signal slow-moving stock or overstocking. Essential for ROS T's off-price model to maintain fresh merchandise and minimize markdowns.
SG&A Expense Ratio: Measures selling, general, and administrative expenses as a percentage of net sales. A declining ratio suggests operating leverage and efficiency gains for Ross Stores; an increasing ratio may point to rising costs or inefficiencies. Important for understanding ROS T's operational discipline and its impact on the bottom line.
Store Count Growth: Tracks the net increase in the number of Ross Stores and dd's DISCOUNTS locations. Consistent store expansion demonstrates Ross Stores' confidence in its growth strategy and market penetration. This metric is key to ROS T's long-term revenue expansion potential.
Analyst Price Targets for ROST
Wall Street's current consensus view on Ross Stores, Inc. (ROST), based on the most recently tracked analyst coverage.
Reflects the most recently tracked analyst ratings for ROST and may lag real-time updates. Not a recommendation to buy or sell.
What Moves ROST Stock?
Ross Stores' stock performance is primarily driven by its off-price retail model's ability to attract value-conscious consumers and its consistent execution of growth strategies. Key factors include comparable store sales, merchandise margins, and expansion plans.
Off-Price Demand
Ross Stores thrives by offering branded apparel and home fashions at significant discounts compared to traditional retailers. This value proposition resonates strongly with consumers, particularly during periods of economic uncertainty or when shoppers are seeking to stretch their budgets.
Strong consumer demand for discounted goods directly translates to higher sales volumes and potentially improved merchandise margins. Positive comparable store sales figures indicate the company's ability to attract and retain shoppers, which typically supports a higher stock valuation.
Store Expansion
The company has a proven strategy of opening new Ross Dress for Less and dd's DISCOUNTS locations. Recent news highlights plans for significant store openings in the coming years, signaling management's confidence in continued market penetration.
Successful store rollouts expand the company's revenue base and market reach. Investors view this expansion as a key driver of future earnings growth, often leading to positive stock price reactions when new store targets are met or exceeded.
Margin Performance
As an off-price retailer, Ross Stores' profitability is heavily influenced by its ability to procure merchandise at low costs and maintain healthy markups. Effective inventory management and favorable buying opportunities are crucial for gross margin performance.
Strong merchandise margins indicate efficient operations and strong pricing power within the discount segment. Improvements in margins, often driven by strategic purchasing or reduced markdowns, directly boost net income and can lead to stock appreciation.
Key insight: Ross Stores' stock is a barometer for the success of its value-driven retail strategy and disciplined expansion. Continued strength in comparable store sales and effective margin management are critical for sustained investor confidence.
Risk Factors
Risk for Ross Stores investors centers on its off-price model's sensitivity to consumer spending and inventory management. Economic downturns or shifts in consumer preferences could impact its ability to source and sell discounted goods effectively.
- Consumer Spending
Ross Stores' off-price model thrives on discretionary spending, particularly for apparel and home goods. A significant economic slowdown or rising unemployment could reduce consumer confidence and purchasing power. This would directly hurt sales volumes and profitability as shoppers cut back on non-essential purchases.
- Inventory Sourcing
The company relies on opportunistic buying of branded merchandise at discounts from manufacturers. Disruptions in the supply chain or changes in brands' strategies to avoid off-price channels could limit inventory availability. This would make it harder for Ross to maintain its value proposition and attract customers.
- Competition
While off-price is a niche, Ross faces competition from other off-price retailers, traditional retailers offering discounts, and online marketplaces. Increased competition could lead to price wars or force Ross to increase markdowns, compressing margins. This risk materializes if competitors gain market share or offer more compelling value.
- Store Expansion
Ross Stores plans significant store expansion, which carries execution risk. Opening too many stores too quickly in saturated markets or failing to find optimal locations could lead to underperforming stores. This would strain capital resources and dilute overall profitability.
- Economic Sensitivity
As a retailer targeting value-conscious consumers, Ross is particularly sensitive to macroeconomic shifts. Inflationary pressures can erode consumer purchasing power, while a recession could lead to significant demand destruction. These factors would directly impact sales and earnings, especially if consumers trade down to even lower-priced alternatives.
ROST Competitive Positioning
Ross Stores, Inc. (ROST) is tracked alongside these names in Apparel Retail on DailyIQ.
ROST Recent Earnings History
- Q3 2025
EPS: $1.58 actual vs $1.42 estimate (beat) · Revenue: $5,601M actual
- Q2 2025
EPS: $1.56 actual vs $1.54 estimate (beat) · Revenue: $5,529M actual
- Q1 2025
EPS: $1.47 actual vs $1.43 estimate (beat) · Revenue: $4,985M actual
- Q4 2024
EPS: $1.79 actual vs $1.66 estimate (beat) · Revenue: $5,912M actual
Frequently Asked Questions About ROST
Is Ross Stores (ROST) stock a good investment?
The investment thesis for Ross Stores (ROST) centers on its strong off-price retail model, which appeals to value-conscious consumers. Its ability to offer branded merchandise at significant discounts, coupled with strategic store expansion, positions it well within the Consumer Cyclical sector. Investors might consider the company's consistent execution and market position when evaluating its potential.
What drives Ross Stores (ROST) stock price?
The stock price of Ross Stores (ROST) is primarily influenced by its sales performance, comparable store sales growth, and earnings per share (EPS) results. Consumer spending trends, particularly for apparel and home goods, along with the company's ability to manage inventory and supply chains effectively, also play a significant role. Positive management guidance and strategic initiatives like store openings and share repurchases can further impact its valuation.
Does Ross Stores (ROST) pay a dividend?
Yes, Ross Stores (ROST) typically pays a quarterly dividend to its shareholders. The company has a history of increasing its dividend, reflecting confidence in its financial performance and commitment to returning capital to investors. Shareholders should review the latest financial reports for current dividend amounts and payout schedules.
What are the risks of investing in Ross Stores (ROST) stock?
Risks associated with Ross Stores (ROST) include increased competition in the retail sector, potential shifts in consumer spending habits, and macroeconomic factors such as inflation or economic downturns. Supply chain disruptions, inventory management challenges, and the company's ability to maintain its value proposition against other retailers are also key considerations.
How does Ross Stores (ROST) valuation compare to its peers?
Ross Stores (ROST) valuation can be assessed by comparing its price-to-earnings (P/E) ratio and other multiples against those of its retail industry peers. While its P/E ratio may fluctuate, its consistent earnings growth and strong market position often support its valuation. Investors should analyze these metrics in the context of the company's growth prospects and overall market conditions.
What is Ross Stores' (ROST) strategy for growth?
Ross Stores' (ROST) growth strategy primarily involves expanding its store footprint through new openings across its Ross Dress for Less and dd's DISCOUNTS banners. The company focuses on delivering value to customers by offering a treasure-hunt shopping experience with constantly changing merchandise. Enhancing its supply chain and operational efficiency also supports its long-term growth objectives.
How has Ross Stores (ROST) performed in recent earnings reports?
Recent earnings reports for Ross Stores (ROST) have generally shown positive performance, with the company frequently exceeding analyst expectations for earnings per share. Sales figures have also indicated strength, driven by robust consumer demand for its off-price offerings. Investors often look to these reports for signs of continued operational execution and financial health.
What is the outlook for Ross Stores (ROST) in the off-price retail market?
The outlook for Ross Stores (ROST) in the off-price retail market appears favorable, given the enduring consumer preference for value, especially in uncertain economic times. The company's established brand recognition and effective merchandising strategy position it to capitalize on this trend. Continued expansion and operational efficiency are key factors for sustaining its market position.
Does Ross Stores (ROST) engage in share buybacks?
Yes, Ross Stores (ROST) has a history of authorizing and executing share repurchase programs. These buybacks can reduce the number of outstanding shares, potentially increasing earnings per share and signaling management's confidence in the company's intrinsic value. Investors should check recent financial disclosures for details on current repurchase activity.
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