Ross Stores Earnings Preview: Analyst Expectations and Industry Comparison

Ross Stores is set to release its Q1 2025 earnings on Thursday, August 21. Analysts expect an EPS of $1.53. The company has a track record of beating EPS estimates, but this has led to a 9.85% drop in share price on the following day. Shares are currently trading at $147.88, down 1.75% over the last 52-week period. The consensus rating from 11 analysts is Outperform with an average 1-year price target of $151.18, indicating a potential 2.23% upside.

Ross Stores (ROST) is set to release its Q1 2025 earnings on Thursday, August 21. Analysts expect an earnings per share (EPS) of $1.53. The company has a track record of beating EPS estimates, but this has led to a 9.85% drop in share price on the following day. Shares are currently trading at $147.88, down 1.75% over the last 52-week period. The consensus rating from 11 analysts is Outperform with an average 1-year price target of $151.18, indicating a potential 2.23% upside.

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.

Analysts expect Ross Stores to report an EPS of $1.52 per share, reflecting a decline of 4.4% compared to the same period last year. Revenues are forecasted to be $5.53 billion, representing a year-over-year increase of 4.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

The average prediction of analysts places 'Comparable store sales - YoY change' at 1.7%. Compared to the present estimate, the company reported 4.0% in the same quarter last year. The combined assessment of analysts suggests that 'Store count at end of period' will likely reach 2,234. The estimate is in contrast to the year-ago figure of 2,148. Analysts expect 'Number of stores opened' to come in at 31. Compared to the present estimate, the company reported 24 in the same quarter last year.

Ross Stores' financial strength is reflected in its exceptional Return on Equity (ROE), which exceeds industry averages. With a remarkable ROE of 8.65%, the company showcases efficient use of equity capital and strong financial health. Ross Stores' 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. The company's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.9.

Ross Stores' stock has returned +13.1% over the past month, compared to the Zacks S&P 500 composite's +3.5% change. Currently, ROST carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future.

[1] https://www.benzinga.com/insights/earnings/25/08/47234822/earnings-preview-for-ross-stores
[2] https://finance.yahoo.com/news/gear-ross-stores-rost-q2-131502597.html
[3] https://finance.yahoo.com/quote/ROST/
[4] https://www.marketbeat.com/instant-alerts/filing-azimuth-capital-investment-management-llc-reduces-holdings-in-ross-stores-inc-nasdaqrost-2025-08-15/