Ross Stores, Inc. (ROST) is listed on NASDAQ and operates in the Apparel - Retail industry (Consumer Cyclical sector).
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores primarily to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income. As of July 5, 2022, it operated approximately 1,950 stores under the Ross Dress for Less and dd's DISCOUNTS name in 40 states, the District of Columbia, and Guam. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 31 |
| Hold | 12 |
| Sell | 4 |
| Strong Sell | 0 |
Ross Stores, Inc., along with its subsidiaries, operates off-price retail stores under the brand names Ross Dress for Less and dd's DISCOUNTS. These stores primarily offer a range of products including apparel, accessories, footwear, and home fashions. Ross Dress for Less targets middle-income households, while dd's DISCOUNTS caters to households with moderate income. As of July 5, 2022, the company managed approximately 1,950 stores across 40 states, the District of Columbia, and Guam. Founded in 1957, Ross Stores, Inc. is headquartered in Dublin, California. The company focuses on providing value through discounted pricing on a variety of merchandise, positioning itself as a competitive player in the apparel and home fashion retail industry.
Over the past three fiscal years, the company has demonstrated consistent revenue growth, achieving a compound annual growth rate (CAGR) of 5.7%, with revenue rising from $20.4 billion in 2023 to $22.8 billion in 2025. This growth has been accompanied by a notable increase in earnings per share (EPS), which grew at a 9.0% CAGR, reaching $6.61 by 2025. Profitability metrics reveal a slight improvement in gross margin by 0.6 percentage points (pp) to 27.9%, while operating and net margins showed more volatility but ultimately increased by 0.6pp and 0.2pp, respectively, over the period. The company's cash generation has been robust, with operating cash flow (OCF) and free cash flow (FCF) both increasing, the latter at a 12.3% CAGR, reaching $2.2 billion in 2025. Despite some fluctuations, the free cash flow margin improved by 1.1pp to 9.7%, indicating efficient cash conversion. The company's net debt position decreased significantly from $875 million to $618 million, reflecting a strengthened balance sheet. Additionally, the interest coverage ratio improved markedly to 82.3x, underscoring strong financial health. The company also reduced its share count by approximately 4.3%, enhancing per-share value for shareholders. Overall, the company's performance over the period highlights effective scaling and improved capital efficiency, supported by strong cash flow generation and prudent financial management.
Recent news for Ross Stores, Inc. centers around analyst ratings and institutional trading activity. On April 17, Zacks Investment Research highlighted Ross Stores as one of the top stocks with high return on equity amidst a market hitting record highs. Additionally, Berkeley Inc reported holding $3.40 million in Ross Stores as of the fourth quarter, reflecting a 5% increase in their position. This was disclosed in their latest Form 13F filing with the SEC. Furthermore, Ascent Group LLC increased its holdings in Ross Stores by 1% in the fourth quarter, with their position valued at $2,123,000. Financial Planning Hawaii Inc also acquired 8,560 shares, valued at approximately $1,542,000. These transactions indicate ongoing interest and confidence in Ross Stores from institutional investors. While there were no major product launches or strategic initiatives reported, the consistent institutional interest suggests a positive outlook for the company.