- Ross Stores’ projected earnings per share (EPS) for the fiscal year are between $6.08 and $6.21, slightly below the estimate of $6.24.
- For the second quarter, EPS was $1.56 compared to $1.59 in the previous year, but exceeded the estimate of $1.53.
- Comparable sales increased by 2% from the previous year, though below the 4% rise from the previous year, but above the estimate of +1.9%.
- Total sales for the second quarter were $5.53 billion, reflecting a 4.6% increase year-over-year, slightly under the estimate of $5.54 billion.
- Merchandise inventories totaled $2.61 billion, up by 4.7% year-over-year, matching the estimate.
- Operating margin decreased by 95 basis points to 11.5% due to tariff-related costs.
- Sales performance met expectations, while earnings slightly surpassed the high end of the guidance range due to lower-than-expected tariff costs.
- Projected EPS for the third quarter is between $1.31 and $1.37, down from $1.48 in the same quarter last year.
- Fourth quarter earnings are expected to range from $1.74 to $1.81, compared to $1.79 in 2024.
- Annual EPS for the fiscal year ending January 31, 2026, is anticipated to be between $6.08 and $6.21, down from $6.32 the prior year.
- Ross Stores is adopting a cautious approach to business planning due to macroeconomic uncertainties.
- Analyst ratings: 13 buy recommendations, 6 hold, and 1 sell.
Ross Stores Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are keeping a close eye on Ross Stores Inc. Two recent reports shed light on the company’s performance and future prospects. In one report titled “Ross Stores: Flexible Off-Price Business Model As a Critical Driver For Its Future Performance!” by Baptista Research, it was noted that Ross Stores experienced a mixed first quarter of fiscal 2025. While total sales rose by 3% to $5 billion and earnings per share improved, comparable store sales remained flat, presenting a challenge.
Another report by Baptista Research titled “Ross Stores Inc.: Brand Strategy Impact & An Improved Competitive Position Contributing To Stock’s Potential Growth!” highlighted the company’s fourth-quarter and fiscal year 2024 results. With sales of $5.9 billion and a 3% gain in comparable store sales, Ross Stores showcased a positive performance. However, a slight decrease in earnings per share compared to the previous year was observed. Analysts are optimistic about Ross Stores’ brand strategy and competitive position contributing to its future growth potential.
A look at Ross Stores Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing Smartkarma Smart Scores have assigned Ross Stores Inc a positive long-term outlook based on its strong scores in Growth and Momentum. With a score of 4 in Growth, the company is expected to experience solid expansion in the future, while a score of 4 in Momentum indicates the stock’s potential for continued upward price movement. Combined with a Resilience score of 3, Ross Stores Inc shows promising durability in the face of market fluctuations. However, its Value and Dividend scores of 2 suggest some room for improvement in these areas.
Ross Stores, Inc. operates two off-price retail brands, offering discounted name-brand and designer apparel, accessories, footwear, and home fashions. With a focus on delivering value to customers through its off-price strategy, Ross Stores Inc has positioned itself as a key player in the retail sector. Investors should consider the company’s strong Growth and Momentum scores as indicators of its potential for long-term success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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