A Peek at Ross Stores's Future Earnings
Ross Stores (NASDAQ:ROST) will release its quarterly earnings report on Thursday, 2025-11-20. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Ross Stores to report an earnings per share (EPS) of $1.41.
The market awaits Ross Stores's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings History Snapshot
Last quarter the company beat EPS by $0.03, which was followed by a 1.12% increase in the share price the next day.
Here's a look at Ross Stores's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.53 | 1.43 | 1.66 | 1.40 |
| EPS Actual | 1.56 | 1.47 | 1.79 | 1.48 |
| Price Change % | 1.00 | -10.00 | 2.00 | 2.00 |
Stock Performance
Shares of Ross Stores were trading at $159.9 as of November 18. Over the last 52-week period, shares are up 11.85%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Ross Stores
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Ross Stores.
The consensus rating for Ross Stores is Outperform, based on 13 analyst ratings. With an average one-year price target of $163.0, there's a potential 1.94% upside.
Comparing Ratings with Competitors
In this analysis, we delve into the analyst ratings and average 1-year price targets of Burlington Stores, Gap and Urban Outfitters, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Burlington Stores, with an average 1-year price target of $343.07, suggesting a potential 114.55% upside.
- Analysts currently favor an Neutral trajectory for Gap, with an average 1-year price target of $25.88, suggesting a potential 83.81% downside.
- Analysts currently favor an Neutral trajectory for Urban Outfitters, with an average 1-year price target of $81.1, suggesting a potential 49.28% downside.
Analysis Summary for Peers
The peer analysis summary offers a detailed examination of key metrics for Burlington Stores, Gap and Urban Outfitters, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Ross Stores | Outperform | 4.57% | $1.53B | 8.98% |
| Burlington Stores | Outperform | 9.72% | $1.19B | 6.73% |
| Gap | Neutral | 0.13% | $1.54B | 6.40% |
| Urban Outfitters | Neutral | 11.30% | $566.16M | 5.74% |
Key Takeaway:
Ross Stores is positioned in the middle for Consensus rating among its peers. It ranks second for Revenue Growth. In terms of Gross Profit, Ross Stores is at the top among its peers. For Return on Equity, Ross Stores is also at the top compared to its peers.
Unveiling the Story Behind Ross Stores
Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The company opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are often filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,850 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates around 360 DD's Discounts chains targeting lower-income shoppers.
Ross Stores's Economic Impact: An Analysis
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, Ross Stores showcased positive performance, achieving a revenue growth rate of 4.57% as of 31 July, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Net Margin: Ross Stores's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 9.19%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.98%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Ross Stores's ROA excels beyond industry benchmarks, reaching 3.53%. This signifies efficient management of assets and strong financial health.
Debt Management: Ross Stores's debt-to-equity ratio is below the industry average at 0.88, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Ross Stores visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.