Yahoo Finance·2026-03-24 20:52Retail Sector Overview - Investors are concerned about the retail sector due to short-term worries, including inflation and a weakening job market, exacerbated by the onset of the Iran war [1] - The Iran war is expected to impact the retail sector, particularly through rising energy prices and gasoline costs, but it may also present buying opportunities for long-term investors [2] Ross Stores - Ross Stores operates two discount chains: Ross and dd's Discount, offering discounts of 20% to 60% and up to 70% respectively, targeting middle-income and lower-income consumers [4] - In the fiscal fourth quarter, Ross Stores reported a 9% increase in same-store sales, with management projecting a 3% to 4% increase for the current year and earnings-per-share growth of 6% to 11% [5] - The company ended the year with 1,904 Ross Stores, an increase from 1,831, and opened eight dd's stores, bringing the total to 363 locations [6] Five Below - Five Below focuses on low-priced products aimed at teens and pre-teens, with fiscal fourth-quarter same-store sales increasing by 15.4%, following a 12.8% rise for the year [7] - Management anticipates continued growth, guiding for same-store sales to increase by 3% to 5% in 2026 [7] - The company expanded its store count significantly, adding 227 stores in 2024 and 150 in 2025, with plans to reach a total of 3,500 stores [9]