Ross Stores, Inc. (NASDAQ:ROST) is included among the 12 Best Retail Dividend Stocks to Buy Now. Ross Stores’ (ROST) Dividend Growth: A Key Highlight in Retail Dividend Stocks Ross Stores, Inc. (NASDAQ:ROST) operates a large off-price retail network across the US, offering clothing, home goods, shoes, and accessories at lower prices than traditional department and specialty stores. Its two main chains, Ross Dress for Less and dd’s DISCOUNTS, appeal to budget-conscious shoppers seeking brand-name products ...

Core Insights - The TJX Companies, Inc. (TJX) strengthens its position as a leading value retailer by offering a compelling mix of brand, fashion, quality, and price in global markets [1][9] - Upcoming marketing campaigns are expected to significantly drive shopper traffic and sales during the holiday season [1][4] Marketing Strategy - Management plans to implement exciting marketing campaigns to reinforce value leadership, utilizing a wider variety of media channels to reach a broader customer base [2] - The marketing approach is well-balanced across different age and income groups, with a strong emphasis on acquiring younger customers [3] - Multi-channel engagement strategies include traditional advertising, social media, and influencer partnerships to enhance consumer reach [3][9] Competitive Landscape - Key competitors include Ross Stores, Inc. (ROST) and Dollar Tree, Inc. (DLTR), both of which emphasize their off-price models and value propositions [5][6][7] - Ross Stores focuses on digital channels and traditional advertising to attract value-conscious shoppers [6] - Dollar Tree leverages modern digital capabilities and social influencers to enhance customer experience and drive store traffic [7] Financial Performance - TJX shares have increased by 15.7% year to date, outperforming the industry growth of 3.8% [8] - The company trades at a forward price-to-earnings ratio of 28.7X, compared to the industry average of 30.14X [10] - Zacks Consensus Estimates indicate year-over-year earnings growth of 7.5% for fiscal 2026 and 10% for fiscal 2027, with EPS estimates trending upward [11]

Core Insights - TJX Companies' international business is a significant growth driver, with a 5% year-over-year increase in comparable store sales in Q2 of fiscal 2026, particularly strong in Europe and Australia [1][10] - The company's profit margin for the international segment improved to 5.2%, an increase of 80 basis points from the previous year [1][10] - Management highlighted the company's established presence and leadership in international markets, which enhances its value proposition to consumers [2] Expansion Opportunities - TJX plans to open over 1,800 new stores in existing markets, including Spain, which is expected to contribute to future sales and earnings growth [3][10] - The company is also exploring growth through a joint venture in Mexico and investments in the Middle East, aiming to introduce its off-price retail model to new regions [4] Sourcing and Product Strategy - TJX's global sourcing network includes over 21,000 vendors across more than 100 countries, allowing the company to offer fresh, branded assortments in its international stores [5] Competitive Landscape - Walmart Inc. reported a 10.5% increase in international sales in Q2 of fiscal 2026, driven by growth in China, Walmex, and Flipkart, with e-commerce penetration reaching nearly 27% [6] - Best Buy Co., Inc. saw a year-over-year increase of 11.3% in international sales, although its gross margin decreased by 210 basis points [7] Financial Performance - TJX stock has increased by 6.6% over the past three months, contrasting with a 4.4% decline in the industry [8] - The forward 12-month price-to-earnings ratio for TJX is 28.29X, lower than the industry's average of 31.72X, indicating a favorable valuation [11] - Earnings estimates for fiscal 2026 and 2027 imply year-over-year growth of 7% and 10.3%, respectively, with recent upward revisions in earnings estimates [12]

Company Overview - Burlington Stores (NYSE: BURL) is an off-price department store retailer, smaller than competitors like TJX or Ross, but is in a phase of expansion [3] - The company has a current market capitalization of $18 billion and reported revenue of $11 billion over the past twelve months, with operational profits of $730 million and net income of $526 million [3] Earnings Expectations - Burlington Stores is set to announce its fiscal second-quarter earnings on August 28, 2025, with analysts expecting earnings of $1.29 per share on $2.63 billion in revenue, indicating an 11% year-over-year increase in earnings and a 6% rise in sales [2] - For Q1 FY2025, Burlington reported sales of $2.5 billion, a 6% increase year-over-year, with an EPS of $1.67, exceeding estimates [3] - The company anticipates Q2 sales growth of 5-7% and an EPS of $1.20-$1.30, reaffirming full-year EPS guidance of $8.70-$9.30 and sales growth of 6-8% [3] Historical Performance - Historically, BURL stock has dropped 55% of the time following earnings announcements, with a median one-day decline of 3.8% and a maximum recorded drop of 13% [2] - Over the past five years, positive one-day returns post-earnings occurred approximately 45% of the time, with a median of 8.7% for positive returns and -3.8% for negative returns [4] Trading Strategies - For event-driven traders, understanding historical trends may provide an advantage in positioning prior to earnings or reacting to movements post-release [3] - A strategy to assess the correlation between short-term and medium-term returns post-earnings can be employed, particularly if 1D and 5D returns show high correlation [5]

Core Viewpoint - Burlington Stores, Inc. has announced the appointment of Michael Skirvin to its Board of Directors and Audit Committee, effective November 18, 2025, which is expected to enhance the company's strategic growth oversight [1][2]. Company Overview - Burlington Stores, Inc. is a nationally recognized off-price retailer, specializing in high-quality branded apparel, footwear, accessories, and home merchandise, with Fiscal 2024 net sales of $10.6 billion [4]. - The company operates 1,115 stores across 46 states, Washington D.C., and Puerto Rico, offering discounts of up to 60% off other retailers' prices [4]. Leadership Insights - John Mahoney, Chairman of the Board, emphasized that Skirvin's extensive experience will strengthen the Board's qualifications and oversight capabilities [2]. - Michael O'Sullivan, CEO, expressed excitement about Skirvin's addition, highlighting his 30 years of experience in the off-price retail sector as beneficial for the company's Burlington 2.0 strategy [2]. Michael Skirvin's Background - Michael Skirvin served as CEO of Bob's Discount Furniture from 2016 to 2020 and held various roles at The TJX Companies from 1989 to 2010, including Senior Vice President and Chief Operating Officer [3].

Core Insights - Ross Stores, Inc. operates a chain of off-price retail apparel and home accessories stores, utilizing a successful business model that appeals to cost-conscious consumers [1] - The company is facing significant macroeconomic and geopolitical challenges, including tariff pressures and persistent inflation, which are impacting its cost structure and visibility into future performance [2][4] Financial Performance and Guidance - Management has withdrawn fiscal 2025 sales and earnings guidance due to uncertainties related to tariffs and macroeconomic conditions, leading to a more cautious outlook for the second quarter [3][10] - The Zacks Consensus Estimate for fiscal 2025 EPS indicates a year-over-year decline of 1.4%, while fiscal 2026 EPS is expected to grow by 9% [10] Market Position and Valuation - Ross Stores' shares have decreased by 15.7% year to date, contrasting with the industry's growth of 2.3% [8] - The company trades at a forward price-to-earnings ratio of 19.66X, significantly lower than the industry average of 31.86X [9] Merchandise Sourcing and Cost Pressures - More than half of Ross Stores' merchandise is sourced from China, making the company vulnerable to rising tariff-related costs [4][10] - Although the company is implementing mitigation strategies such as supply-chain diversification and vendor negotiations, these may not fully alleviate the financial pressures [5]

Core Insights - The TJX Companies, Inc. (TJX) achieved a 3% growth in comparable store sales in Q1 of fiscal 2026, driven by increased customer transactions across all divisions [1][8] - The company is positioned as a strong player in the off-price retail sector, benefiting from economic uncertainty that leads consumers to seek value [1][3] Sales Performance - HomeGoods led the sales growth with a 4% increase in comparable sales, while Marmaxx, the largest division, reported a 2% growth [2] - TJX Canada and TJX International each recorded a 5% increase in comparable sales, which helped mitigate foreign exchange pressures [2] Management Insights - Management attributes the sales performance to well-curated assortments and broad customer appeal, emphasizing close-to-need buying and sourcing flexibility [3] - The company is guiding for a 2-3% growth in comparable sales for Q2 of fiscal 2026, indicating confidence in maintaining traffic-driven performance [4][8] Competitive Landscape - In comparison, Costco reported a 5.7% growth in comparable sales, while Burlington Stores experienced flat sales in Q1 of fiscal 2025 [5][6] - TJX's ability to post positive comparable sales across various categories and regions highlights the strength of its off-price model [4] Valuation and Estimates - TJX shares have seen a slight decline of 1.7% over the past month, compared to a 1.8% decline in the industry [7] - The forward price-to-earnings ratio for TJX is 26.6X, lower than the industry average of 32.13X [10] - The Zacks Consensus Estimate indicates a year-over-year growth of 4.4% in sales and 4.7% in earnings per share for the current financial year [11]

Core Viewpoint - Wall Street has experienced a strong recovery due to easing trade tensions, particularly the U.S.-China trade truce and the U.S.-UK deal, which has fostered optimism in the stock market. However, uncertainties regarding Trump and Fed policies persist, making dividend investing an attractive option for consistent income [1]. Dividend Growth Strategy - Dividend investing provides a reliable income source, especially when focusing on stocks with a strong history of year-over-year dividend growth, which can lead to higher returns compared to simple dividend-paying stocks [2][4]. - Stocks with a solid history of dividend growth are typically mature companies, offering protection against market volatility and economic uncertainty while providing consistent payout increases [4][5]. Selection of Dividend Growth Stocks - Three dividend growth stocks identified as compelling picks are Qifu Technology Inc. (QFIN), The TJX Companies Inc. (TJX), and UGI Corporation (UGI) [3]. - Qifu Technology, a credit-tech platform in China, has an estimated earnings growth rate of 22.4% for the year and an average earnings surprise of 14.46% over the last four quarters, with a Zacks Rank of 1 and a Growth Score of B [10]. - TJX Companies, a leading off-price retailer, has an estimated earnings growth rate of 3.99% for the fiscal year ending January 2026 and an average earnings surprise of 5.47% in the past four quarters, holding a Zacks Rank of 2 and a Growth Score of A [11]. - UGI Corporation, a holding company in the energy sector, has seen a positive earnings estimate revision of 3 cents for the fiscal year ending September 2025, with a Zacks Rank of 2 and a Growth Score of B [12][13]. Investment Criteria - The selection criteria for dividend growth stocks include a 5-Year Historical Dividend Growth greater than zero, 5-Year Historical Sales Growth greater than zero, and 5-Year Historical EPS Growth greater than zero, indicating solid growth in dividends, revenues, and earnings [6][7]. - Additional criteria include a Price/Cash Flow ratio less than the industry average, a 52-Week Price Change greater than the S&P 500, and a top Zacks Rank, which collectively narrow down the stock universe to high-potential candidates [8][9].

Financial Data and Key Metrics Changes - For Q4 2024, earnings per share were $1.79 compared to $1.82 for Q4 2023, with net income at $587 million versus $610 million last year [10] - Total sales for Q4 2024 were $5.9 billion, with a comparable store sales gain of 3% on top of a 7% gain in the same period last year [10] - For fiscal 2024, earnings per share increased to $6.32 from $5.56 in fiscal 2023, with net income rising to $2.1 billion compared to $1.9 billion last year [11] - Total sales for fiscal 2024 increased to $21.1 billion, up from $20.4 billion in the prior year [11] Business Line Data and Key Metrics Changes - Cosmetics and children's merchandise were the best-performing areas during the holiday season, while DD's discounts posted healthy sales gains [14] - The operating margin for Q4 was 12.4%, flat compared to last year, with a 105 basis point benefit from the sale of a packaway facility [13][20] - Merchandise margin declined by 85 basis points due to an increased mix of quality branded assortments [21] Market Data and Key Metrics Changes - The Pacific Northwest and Texas were the strongest regions for sales performance, while California and Florida were in line with the chain average [52] - Consolidated inventories were up 12%, mainly due to higher planned packaway levels, with packaway representing 41% of total inventories compared to 40% last year [15] Company Strategy and Development Direction - The company plans to open approximately 90 new locations in fiscal 2025, including about 80 Ross and 10 DD's, while closing or relocating about 10 to 15 older stores [29] - The management believes the brand and merchandising strategies for both Ross and DD's are sound and will continue to be pursued without significant changes [40][41] - The company aims to enhance its store environment and marketing efforts, with a focus on prudent investment and potential ROI [72] Management's Comments on Operating Environment and Future Outlook - Management noted that sales trends began softening later in January and into February due to unseasonable weather and macroeconomic volatility [23] - The company expects comparable store sales for Q1 2025 to be down 3% to flat, with earnings per share projected between $1.33 and $1.47 [24] - Management remains optimistic about the potential for closeout merchandise opportunities due to the current retail environment [34] Other Important Information - The company repurchased 1.7 million shares for $262 million in Q4 2024, totaling 7.3 million shares for $1.05 billion in fiscal 2024 [16] - A 10% increase in the quarterly cash dividend to $0.405 per share was approved, payable on March 31, 2025 [17] Q&A Session Summary Question: Can you elaborate on your top strategic priorities? - The CEO indicated that the brand strategy for Ross and customer strategy for DD's are sound and will continue to be pursued, with a focus on learning the off-price model [40] Question: Can you discuss regional performance in Q4? - The Pacific Northwest and Texas were top-performing regions, while California and Florida were in line with the chain [52] Question: How do you view the impact of weather on sales? - Management noted that weather-impacted areas saw declines, but improvements were observed as weather conditions improved [46] Question: What is the outlook for merchandise margins? - Merchandise margins are expected to be relatively neutral for fiscal 2025, with ongoing adjustments based on customer feedback [64] Question: How is the company handling tariffs? - The company is monitoring tariff changes closely and plans to maintain price competitiveness while exploring closeout opportunities [110][111] Question: What is the strategy for store openings? - The company sees growth potential with existing store formats and plans to continue opening new stores in various markets [117] Question: How does the company plan to enhance marketing efforts? - The CEO acknowledged the need for improved marketing and messaging, with plans to invest in these areas over time [134]

Core Viewpoint - Ross Stores reported strong earnings with an EPS of $1.79, exceeding analyst expectations, but revenue fell short, indicating potential challenges ahead [2][6]. Financial Performance - EPS for Q4 2024 was $1.79, surpassing the estimated $1.66, aided by a one-time sale [2][6]. - Revenue reached $5.9 billion, missing the estimated $5.943 billion and down from $6 billion in the previous year, reflecting a 2% year-over-year decline [3][6]. - Operating margin remained stable at 12.4%, unchanged from the previous year [3][7]. - Net income was reported at $587 million, a decrease of 3.8% from $610 million in Q4 2023 [3]. Company Overview - Ross Stores is a leader in the off-price retail sector, focusing on buying excess inventory and offering significant discounts on well-known brands [4]. - The company expanded its store count from 2,109 to 2,186 locations over the fiscal year [4]. Strategic Initiatives - The company aims to attract cost-conscious shoppers by providing value-driven options and enhancing operational competitiveness [5]. - Ross's merchandise strategy, termed "packaway," ensures timely inventory deployment, contributing to its pricing advantage [5]. Market Dynamics - Comparable store sales increased by 3%, building on a 7% increase from the prior year, although the sales boost was moderated by an extra week in last year's period [7]. - The company faced challenges due to a dip in consumer activity around Thanksgiving, impacting sales momentum [6]. Future Outlook - For fiscal 2025, Ross projects flat to a 3% decline in comparable store sales for the first quarter, reflecting caution regarding macroeconomic conditions [8]. - Management anticipates annual EPS to range from $5.95 to $6.55, a slight contraction from the previous year's $6.32, indicating ongoing competitive pressures [8]. Investor Considerations - Investors should focus on Ross's proactive purchasing strategy, which is guided by demographic targeting and geographic positioning in urban areas [9]. - The company is navigating competitive tensions from various retail formats, particularly e-commerce, and localized factors affecting shopper behavior [9].