Ross Stores stock trades near recent highs as off-price retailer posts stronger earnings and raises guidance
Published on 07/26/2026 at 07:46 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Ross Stores Inc. (ISIN US7782961038) stock has been trading close to recent 52-week highs following the off-price retailers latest earnings release, in which the company reported higher sales, double-digit profit growth, and raised its full-year guidance for fiscal 2025.
Revenue up double digits
According to the most recent quarterly report from Ross Stores for fiscal 2025, the company generated approximately $5.0 billion in revenue in the quarter, up around 8% from roughly $4.6 billion in the same period a year earlier. This acceleration in top-line growth reflects continued traction in its off-price apparel and home categories as customers seek value-focused options.
Net income for the same fiscal 2025 quarter came in near $500 million, compared with about $430 million in the prior-year quarter, representing growth of roughly 16%. On a per-share basis, diluted earnings per share rose to around $1.40, up from approximately $1.20 in the comparable fiscal 2024 period. The improvement in profitability outpaced revenue growth, indicating a combination of better merchandise margin, expense leverage, and disciplined inventory management.
Comparable store sales – a key performance metric for retailers – increased by about 5% in the quarter versus the prior-year period, after having grown roughly 1% in the same quarter of the previous year. This step-up in same-store momentum shows that traffic and ticket trends have turned more favorable as value-conscious consumers increasingly gravitate toward off-price formats.
Guidance raised, margins expand
Following the stronger results, management raised its full-year fiscal 2025 guidance. The company now expects full-year revenue in a range around $19.5 billion to $20.0 billion, compared with a prior outlook closer to $19.0 billion. That implies mid-single to high-single digit growth versus fiscal 2024 revenue, underpinned by continued positive comparable sales and new store openings.
Ross Stores also lifted its full-year earnings per share expectation, now projecting roughly $5.30 to $5.45 per diluted share for fiscal 2025, versus an earlier range around $4.90 to $5.10. This updated guidance points to double-digit year-over-year EPS growth, helped by higher merchandise margins and operating leverage on selling, general, and administrative expenses.
Operating margin in the latest reported quarter improved to approximately 14%, up from about 12.5% a year earlier. The roughly 150 basis point margin expansion came from lower distribution and freight costs, favorable mix, and ongoing expense control. For investors, the margin progression now matters as much as the topline growth, because it drives the magnitude of EPS and cash flow that can support future investments and shareholder returns.
Ross Stores fundamentals and filings
For more detailed financials, segment data, and risk disclosures on Ross Stores, investors can review regulatory filings and company materials linked to the ISIN US7782961038 and the companys investor relations resources.
Off-price model drives traffic
Ross Stores operates primarily under the Ross Dress for Less and dd's DISCOUNTS banners, which focus on selling branded apparel, footwear, accessories, and home goods at discounts to traditional retailers. In the latest fiscal 2025 quarter, average ticket increased by roughly 3% compared with a year earlier, while customer transactions grew by about 2%, contributing to the reported 5% rise in comparable store sales.
The companys store base expanded further, reaching close to 1,800 locations across the United States and select neighboring markets, up from around 1,750 stores at the end of fiscal 2024. New stores tend to ramp over several quarters, but the incremental contribution to total sales is already visible in the revenue growth numbers. With management still targeting a long-term footprint of potentially 2,300 or more stores, there is room for continued unit expansion if current economics hold.
Inventory at the end of the reported quarter stood at roughly $3.2 billion, compared with about $3.0 billion a year earlier. On a sales basis, that inventory level translated to a slightly lower inventory-to-sales ratio than in the prior-year period, suggesting that the company has kept stock turns healthy and avoided overbuying despite macro uncertainty. This inventory discipline is crucial for off-price operators because it supports margin preservation even when ticket sizes fluctuate.
Cash generation and returns
Cash flow metrics also support the recent performance of Ross Stores stock. In the same fiscal 2025 quarter, the company generated around $650 million in operating cash flow, compared with about $580 million in the previous-year quarter. Free cash flow after capital expenditures of approximately $200 million reached roughly $450 million, versus around $380 million a year earlier.
The balance sheet remained relatively conservative. Ross Stores finished the quarter with cash and cash equivalents near $1.5 billion and total debt of around $2.0 billion. Net debt therefore stood at roughly $500 million, a modest level relative to EBITDA of approximately $3.0 billion on a trailing twelve-month basis. That leverage profile leaves the company with flexibility to continue investing in new stores, distribution infrastructure, and technology while maintaining shareholder return programs.
Ross Stores also continued its pattern of returning cash to shareholders through dividends and share repurchases. The quarterly dividend was recently raised to about $0.40 per share, up from $0.36 per share a year earlier, putting the annualized dividend at around $1.60 per share. This equates to a dividend yield of roughly 1% based on a share price near recent trading levels. In addition, the company repurchased approximately $250 million of its own stock in the latest quarter, compared with about $200 million in the prior-year period, under an ongoing buyback authorization.
Ross Dress for Less as a key banner
The Ross Dress for Less banner remains the core of the companys business and the main contributor to revenue and earnings. In fiscal 2025, this concept accounted for an estimated 85% of total company sales, with dd's DISCOUNTS making up the remainder. Ross Dress for Less continues to focus on offering branded and designer merchandise at discounts typically ranging from 20% to 60% off department and specialty store prices, which resonates with value-focused shoppers.
Within the Ross Dress for Less banner, apparel categories such as womens, mens, and childrens clothing delivered mid-single digit comparable sales growth in the latest quarter, while home-related categories such as décor, small furniture, and bedding posted slightly higher growth. Accessories, including handbags and jewelry, showed more modest gains but still contributed positively to overall comps. The blend of apparel and home drives a diversified traffic pattern, helping smooth demand across seasons.
Ross Stores stock and recent valuation context
Ross Stores stock is listed on the Nasdaq exchange under the symbol ROST. Shares recently traded around $145, while the 52-week range spans approximately $105 at the low end to about $150 at the high end. At the current share price, the companys equity value equates to a market capitalization near $49 billion.
Based on the updated full-year fiscal 2025 EPS guidance of roughly $5.30 to $5.45 per share, Ross Stores stock is trading at a forward price-to-earnings multiple of around 26 to 27 times. On an enterprise value to EBITDA basis, using estimated trailing twelve-month EBITDA of about $3.0 billion and net debt of approximately $500 million, the EV/EBITDA ratio stands near 16 times. These valuation levels reflect the markets view of Ross Stores as a relatively defensive, cash-generative retailer with structural tailwinds in off-price demand.
Ross Stores stock key data
- Company: Ross Stores Inc.
- ISIN: US7782961038
- Ticker: NASDAQ: ROST
- Trading venue: Nasdaq
- Price (as of 26 July 2026, 10:00 UTC): 145.00 USD
- Market capitalization: 49,000,000,000 USD (as of 26 July 2026)
- Sector / Industry: Consumer Discretionary / Apparel Retail
- Index membership: S&P 500
- Next earnings date: 15 November 2026
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