Ross Stores ROST is preparing to release its quarterly earnings on Thursday, 2025-08-21. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Ross Stores to report an earnings per share (EPS) of $1.53.
The announcement from Ross Stores is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings Track Record
The company's EPS beat by $0.04 in the last quarter, leading to a 9.85% drop in the share price on the following day.
Here's a look at Ross Stores's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.43 | 1.66 | 1.40 | 1.50 |
| EPS Actual | 1.47 | 1.79 | 1.48 | 1.59 |
| Price Change % | -10.0% | 2.0% | 2.0% | 2.0% |
Stock Performance
Shares of Ross Stores were trading at $147.88 as of August 19. Over the last 52-week period, shares are down 1.75%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Opinions on Ross Stores
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Ross Stores.
With 11 analyst ratings, Ross Stores has a consensus rating of Outperform. The average one-year price target is $151.18, indicating a potential 2.23% upside.
Comparing Ratings with Peers
The analysis below examines the analyst ratings and average 1-year price targets of Burlington Stores, Gap and Urban Outfitters, three significant industry players, providing valuable 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 $319.22, suggesting a potential 115.86% upside.
- Analysts currently favor an Neutral trajectory for Gap, with an average 1-year price target of $27.27, suggesting a potential 81.56% downside.
- Analysts currently favor an Neutral trajectory for Urban Outfitters, with an average 1-year price target of $75.47, suggesting a potential 48.97% downside.
Comprehensive Peer Analysis Summary
In the peer analysis summary, key metrics for Burlington Stores, Gap and Urban Outfitters are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Ross Stores | Outperform | 2.61% | $1.40B | 8.65% |
| Burlington Stores | Outperform | 6.03% | $1.10B | 7.41% |
| Gap | Neutral | 2.21% | $1.45B | 5.86% |
| Urban Outfitters | Neutral | 10.72% | $489.06M | 4.42% |
Key Takeaway:
Ross Stores is positioned in the middle among its peers for revenue growth. It ranks at the top for gross profit. In terms of return on equity, Ross Stores is also at the top among its peers.
All You Need to Know About Ross Stores
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 around 350 DD's Discounts chains targeting lower-income shoppers.
Understanding the Numbers: Ross Stores's Finances
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Over the 3 months period, Ross Stores showcased positive performance, achieving a revenue growth rate of 2.61% as of 30 April, 2025. This reflects a substantial increase in the company's 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 9.61% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Ross Stores's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.65%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Ross Stores's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.28%, the company showcases efficient use of assets and strong financial health.
Debt Management: Ross Stores's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.9.
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.
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