- Ross Stores reported earnings per share (EPS) of $1.58 for the third quarter, surpassing last year’s $1.48 and well above the estimated $1.40.
- Total sales for the quarter reached $5.60 billion, representing a 10% year-over-year increase and exceeding the forecasted $5.41 billion.
- Ross Stores expanded its store locations to 2,273, slightly more than the estimated count of 2,272, marking a 1.8% increase quarter-over-quarter.
- Merchandise inventories increased by 9.4% year-over-year to $3.13 billion, surpassing the estimated $2.93 billion.
- Strong top-line performance and effective expense management led to a higher-than-expected operating margin of 11.6% for the quarter.
- For the upcoming period ending January 31, 2026, Ross Stores has adjusted its forecast, expecting a 3% to 4% increase in comparable store sales and projecting EPS between $1.77 and $1.85.
- Ross Stores is optimistic about holiday season sales, focusing on delivering quality, branded merchandise at exceptional value.
- The company has revised its full fiscal year 2025 EPS guidance to a range of $6.38 to $6.46, despite a negative tariff-related cost impact of approximately $0.16 per share.
- Share prices increased by 4.5% in post-market trading, reaching $167.77.
- Analyst ratings include 14 buys, 6 holds, and 1 sell.
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Ross Stores Inc on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely examining Ross Stores Inc and its performance in the first quarter of fiscal 2025. In their report titled “Ross Stores: Flexible Off-Price Business Model As a Critical Driver For Its Future Performance!“, Baptista Research highlights a mixed scenario for the company. While total sales saw a 3% increase to $5 billion and earnings per share improved to $1.47 from $1.46 in the previous year, Ross Stores faced challenges with flat comparable store sales, impacting overall performance.
Baptista Research‘s bullish sentiment reflects optimism in Ross Stores’ flexible off-price business model as a key driver for its future success. The analysis sheds light on both growth opportunities and obstacles that the company is navigating, offering valuable insights for investors interested in understanding the intricacies of Ross Stores Inc‘s operating environment.
A look at Ross Stores Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
Based on the Smartkarma Smart Scores, Ross Stores Inc has a positive long-term outlook ahead. With strong momentum and growth scores of 5 and 4 respectively, the company is showing promising signs of continuous expansion and market performance. In addition, the resilience score of 3 indicates a solid ability to withstand economic fluctuations. Although the value and dividend scores are not as high, the overall outlook for Ross Stores Inc appears optimistic.
Ross Stores, Inc. operates two brands of off-price retail stores offering a variety of name brand and designer apparel, accessories, footwear, and home fashions at discounted prices. This positioning in the market has allowed the company to maintain its competitiveness and appeal to value-conscious consumers. With a focus on growth and momentum, Ross Stores Inc is set to capitalize on its strengths and navigate the retail industry successfully in the long term.
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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