Core Points - Ross Stores, Inc. announced a quarterly cash dividend of $0.405 per common share, payable on December 31, 2025, to stockholders of record as of December 9, 2025 [1][8] - The company reported fiscal 2024 revenues of $21.1 billion and operates 1,909 Ross Dress for Less locations and 364 dd's DISCOUNTS stores across the United States [2][8] Company Overview - Ross Stores, Inc. is a member of the S&P 500, Fortune 500, and Nasdaq 100, headquartered in Dublin, California [2] - The company offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions at savings of 20% to 60% off regular prices [2] - dd's DISCOUNTS stores feature a more moderately-priced assortment with savings of 20% to 70% off regular prices [2] Upcoming Events - Ross Stores plans to release its third quarter 2025 earnings results on November 20, 2025, at approximately 4:00 p.m. Eastern time, with a conference call scheduled for 4:15 p.m. Eastern time [6]

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Core Viewpoint - Ross Stores, Inc. is expected to report year-over-year revenue growth for Q3 fiscal 2025, with projected revenues of $5.41 billion, reflecting a 6.7% increase from the previous year [1]. Revenue and Earnings Estimates - The consensus estimate for earnings per share (EPS) is $1.40, which represents a decline of 5.4% from $1.48 in the same quarter last year [1]. - The company has a trailing four-quarter earnings surprise average of 5.1%, with a 2.6% surprise in the last reported quarter [2]. Factors Influencing Q3 Results - Broad-based strength across merchandise categories and solid customer response are expected to support performance [3]. - The off-price retail model is anticipated to attract value-focused shoppers, while a micro-merchandising strategy enhances inventory allocation [4]. - The company expects comparable sales growth of 2-3% for Q3, with a projected 2.9% growth [5]. Economic and Geopolitical Considerations - Ross Stores is cautious about ongoing macroeconomic and geopolitical uncertainties, which may impact consumer spending and profitability [6][7]. - The company anticipates a decline in EPS to $1.31-$1.37, with tariff impacts contributing approximately seven to eight cents to this decline [7]. Earnings Prediction Model - The Zacks model indicates a potential earnings beat for Ross Stores, supported by a positive Earnings ESP of +3.41% and a Zacks Rank of 3 [8]. Stock Performance and Valuation - Ross Stores is trading at a forward price-to-earnings ratio of 24.10X, lower than the industry average of 29.88X [9]. - The stock has gained 10.1% over the past three months, contrasting with a 1.6% decline in the industry [9].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Ross Stores despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Ross Stores is expected to report quarterly earnings of $1.40 per share, reflecting a year-over-year decrease of 5.4% [3]. - Revenue projections stand at $5.41 billion, indicating a 6.7% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.11% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for Ross Stores is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.41% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Ross Stores currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Ross Stores exceeded the expected earnings of $1.52 per share, achieving actual earnings of $1.56, resulting in a surprise of +2.63% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Industry Comparison - Target, a competitor in the discount retail sector, is expected to report earnings of $1.76 per share, reflecting a year-over-year decline of 4.9% [18]. - Target's revenue is projected at $25.36 billion, down 1.2% from the previous year, with a negative Earnings ESP of -3.07% and a Zacks Rank of 4 [19].

Core Insights - The article compares Dollar General (DG) and Ross Stores (ROST) to determine which stock is more undervalued for investors interested in retail discount stores [1] Group 1: Zacks Rank and Earnings Estimates - Dollar General has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Ross Stores, which has a Zacks Rank of 3 (Hold) [3] - The improving analyst outlook for Dollar General suggests a stronger potential for earnings growth [3] Group 2: Valuation Metrics - Dollar General has a forward P/E ratio of 16.26, significantly lower than Ross Stores' forward P/E of 26.20, indicating that DG may be undervalued [5] - The PEG ratio for Dollar General is 2.10, while Ross Stores has a PEG ratio of 3.12, further suggesting that DG is a better value option [5] - Dollar General's P/B ratio is 2.74, compared to Ross Stores' P/B of 9.2, reinforcing the notion that DG is more attractively priced [6] Group 3: Value Grades - Based on various fundamental metrics, Dollar General has earned a Value grade of A, while Ross Stores has a Value grade of C, indicating a stronger value proposition for DG [6]

Core Insights - Ross Stores, Inc. (ROST) is enhancing shopper experience and driving growth through strategic initiatives, including store openings and expansions, resulting in increased comparable store sales [1][3] Store Expansion - The company completed its fiscal 2025 store-expansion plans by opening 40 new stores, including 36 Ross Dress for Less and 4 dd's DISCOUNTS outlets across 17 states [2] - In the current fiscal year, Ross Stores has added a total of 90 new stores, bringing the total to 2,273 locations across 44 states, the District of Columbia, Guam, and Puerto Rico [2] Growth Projections - Ross Stores aims to achieve at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS stores in the long term, indicating a strong commitment to growth through store expansion [3] - In the second quarter of fiscal 2025, the company's revenue increased by 5% year over year, supported by a 2% gain in comparable store sales, with expectations of 2-3% comps growth in the third and fourth quarters [3] Marketing and Customer Engagement - The company's marketing strategy emphasizes its off-price model and consistent value through various channels, including digital platforms and traditional advertising, to strengthen its position as a leading off-price retailer [4] - Ross Stores is focused on attracting and retaining a diverse customer base that seeks high-quality merchandise at affordable prices [4] Long-term Outlook - Ross Stores is well-positioned for long-term growth, supported by steady store openings, effective execution, and financial resilience [5]

Core Insights - Ross Stores Inc. is expanding its footprint while many retailers are contracting, having opened 36 Ross Dress for Less locations and 4 dd's Discounts stores across 17 states in September and October, completing its growth plans for fiscal 2025 [1] - The company plans to open 90 new locations by the end of the year, reinforcing its brand presence in existing and new markets [2] - Ross is adding stores in the Midwest and Northeast, including Michigan, New Jersey, and New York, while also expanding in sunbelt states [3] Expansion Strategy - The company is focusing on expanding dd's in core markets like California and Texas, with a long-term goal of reaching at least 2,900 Ross Dress for Less and 700 dd's Discounts locations [5] - Ross Stores is seen as an outlier in the retail sector, which is experiencing significant store closures, as it continues to grow its presence [5] Market Context - The retail industry is facing a 274% spike in layoffs in 2025, with major retailers like Macy's and Kohl's closing underperforming stores to boost profitability [3][7] - Off-price retail has been a growth segment, with Ross competing effectively against other discount retailers like T.J. Maxx and Burlington, attracting a mix of lower-income shoppers and those trading down from mid-tier retailers [8][10] - Coresight Research indicates that six of the ten retail chains opening the most stores in 2025 are discount formats, with Ross, TJX, and Burlington expected to open a combined total of 289 stores this year [11] Business Model - Ross Stores operates on a business model that allows them to purchase excess inventory at low costs and sell it at significant discounts, enabling them to open new locations with minimal outside capital [12][13] - Currently, there are 2,273 Ross Dress for Less and dd's Discounts stores operating across 44 states, the District of Columbia, Guam, and Puerto Rico [13]

Core Insights - Ross Stores, Inc. (ROST) is enhancing its market presence through new store openings and operational improvements, having recently completed its fiscal 2025 expansion plan by opening 40 new stores [1][9] - The company has added a total of 90 new stores in the current fiscal year, operating 2,273 Ross Dress for Less and 364 dd's DISCOUNTS locations across various states [2][9] - ROST is experiencing positive customer responses across its merchandise categories, contributing to sales growth and profitability [3][4] Expansion and Growth - The recent store openings include 36 Ross Dress for Less and four dd's DISCOUNTS outlets in 17 states, with a focus on expanding in the Midwest, Northeast, California, and Texas [2][3] - ROST anticipates comparable store sales (comps) growth of 2-3% for the third and fourth quarters of fiscal 2025, supported by broad-based merchandise strength [4][9] - The company has raised its long-term store-expansion targets, aiming for at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS stores [5] Financial Performance - In the second quarter of fiscal 2025, ROST's top line improved by 5% year over year, with a 2% gain in comps [4] - Projections indicate comparable sales growth of 2.9% in the third quarter and 2.0% in the fourth quarter of fiscal 2025 [4] Market Position - ROST shares have increased by 21.3% over the past three months, contrasting with a 0.3% decline in the industry [6]

Core Insights - Investors in the Retail - Discount Stores sector should consider Dollar General (DG) and Ross Stores (ROST) for potential value opportunities [1] Valuation Metrics - Dollar General has a Zacks Rank of 2 (Buy), while Ross Stores has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for DG [3] - DG has a forward P/E ratio of 16.61 compared to ROST's forward P/E of 25.02, suggesting DG is more attractively priced [5] - The PEG ratio for DG is 2.14, while ROST's PEG ratio is 2.97, indicating DG's expected earnings growth is more favorable [5] - DG's P/B ratio is 2.8, significantly lower than ROST's P/B of 8.78, further supporting DG's valuation advantage [6] - Based on various valuation metrics, DG holds a Value grade of A, while ROST has a Value grade of C, reinforcing DG as the superior value option [6]

Core Insights - Investors are encouraged to consider stocks like Deckers Outdoor, O'Reilly Automotive, and Lululemon Athletica due to their high return on invested capital (ROIC) in the competitive retail sector [1][3] Group 1: Return on Invested Capital (ROIC) - ROIC is a critical metric in the retail sector, indicating how much operating profit a company generates from every dollar invested [2] - The median ROIC for retail stocks tracked by Citi Research is 17.6%, with Deckers leading at 53%, followed by O'Reilly Automotive at 45% and Lululemon at 45% [3] Group 2: Stock Performance and Market Trends - Shares of Lululemon and Deckers have underperformed the broader market in 2025, both down approximately 50% year-to-date, while the S&P 500 has increased around 14% [4] - Analysts predict a flat profit year for Deckers ending March 2026, but expect around 10% growth in the following fiscal year, with a 25% upside implied by average sell-side analyst price targets [5] Group 3: Brand Performance - Hoka, a brand under Deckers, is noted as one of the fastest-growing in the athletic space, although there are concerns about potential growth slowdown in fiscal year 2026 [6] - O'Reilly Automotive is experiencing significant success, with shares up over 32% due to delayed new car purchases, benefiting from its efficient supply chain despite its stock being valued at nearly 33 times forward earnings, the highest in a decade [7]