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Will Ross Stores' Store Expansions and Other Initiatives Aid?
ZACKSยท 2025-10-20 14:16
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]