A Look Ahead: Ross Stores's Earnings Forecast

Ross Stores ROST is set to give its latest quarterly earnings report on Thursday, 2025-05-22. Here's what investors need to know before the announcement.

Analysts estimate that Ross Stores will report an earnings per share (EPS) of $1.42.

The market awaits Ross Stores's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

Last quarter the company beat EPS by $0.13, which was followed by a 1.96% increase in the share price the next day.

Here's a look at Ross Stores's past performance and the resulting price change:

Tracking Ross Stores's Stock Performance

Shares of Ross Stores were trading at $154.24 as of May 20. Over the last 52-week period, shares are up 16.44%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about Ross Stores

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Ross Stores.

The consensus rating for Ross Stores is Neutral, based on 16 analyst ratings. With an average one-year price target of $154.12, there's a potential 0.08% downside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Burlington Stores, Gap and Urban Outfitters, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Burlington Stores, with an average 1-year price target of $320.23, suggesting a potential 107.62% upside.
• Analysts currently favor an Neutral trajectory for Gap, with an average 1-year price target of $26.86, suggesting a potential 82.59% downside.
• Analysts currently favor an Neutral trajectory for Urban Outfitters, with an average 1-year price target of $60.23, suggesting a potential 60.95% downside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for Burlington Stores, Gap and Urban Outfitters are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Ross Stores is positioned at the bottom for Revenue Growth among its peers. It ranks in the middle for Gross Profit. The company is at the bottom for Return on Equity.

Delving into Ross Stores's Background

Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The company opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are often filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,800 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates about 350 DD's Discounts chains targeting lower-income shoppers.

Ross Stores: A Financial Overview

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Challenges: Ross Stores's revenue growth over 3 months faced difficulties. As of 31 January, 2025, the company experienced a decline of approximately -1.83%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ross Stores's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.92% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Ross Stores's ROE excels beyond industry benchmarks, reaching 10.89%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Ross Stores's ROA stands out, surpassing industry averages. With an impressive ROA of 3.94%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Ross Stores's debt-to-equity ratio is below the industry average at 1.03, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Ross Stores visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.