Ross Stores Q2 Earnings Preview: Revenue Expected to Grow 4.8% YoY

Ross Stores (ROST) reports Q2 earnings on Thursday. Analysts expect revenue to grow 4.8% YoY to $5.54 billion and adjusted EPS of $1.54. The company has missed Wall Street's revenue estimates three times over the last two years. Ross Stores has an average analyst price target of $153.76, compared to the current share price of $148.20.

Ross Stores, Inc. (ROST) is set to report its second-quarter fiscal 2025 earnings on Thursday. Analysts are expecting the company to post a 4.8% year-over-year (YoY) growth in revenue, reaching $5.54 billion [1]. Adjusted earnings per share (EPS) are anticipated to be $1.54 [1].

Ross Stores has a history of meeting or exceeding Wall Street’s revenue estimates, but it has missed the mark three times over the past two years [2]. This quarter, analysts expect the company to continue its trend of slower growth compared to the same period last year, when revenue increased by 7.1% [2].

The company’s stock has been trading at an average analyst price target of $153.76, slightly above the current share price of $148.20 [2]. Ross Stores has been navigating challenges such as tariff headwinds, inflation, and cautious consumer spending on discretionary items. However, the company has shown resilience through its off-price retail model and micro-merchandising strategy, which optimize inventory allocation and align with regional consumer preferences [1].

Despite the challenges, Ross Stores has maintained a strong business model, driving higher traffic and boosting same-store sales growth. The company’s ability to offer value-driven bargains continues to resonate with price-conscious consumers [1].

Ross Stores has withdrawn its fiscal 2025 sales and earnings guidance due to ongoing macroeconomic and geopolitical uncertainties. The company has forecast a fiscal second-quarter EPS of $1.40-$1.55, down from the $1.59 reported in the prior-year period, largely due to the impacts of announced tariffs [1].

Investors will closely watch Ross Stores’ Q2 earnings report to gauge the company’s ability to navigate the current economic environment and its strategy for mitigating tariff-related costs. The results will provide insights into the company’s financial performance and future prospects.

References:
[1] https://finance.yahoo.com/news/ross-stores-q2-earnings-upcoming-144900002.html
[2] https://finance.yahoo.com/news/earnings-watch-ross-stores-rost-030207501.html