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Ross Stores, Inc. (ROST), headquartered in Dublin, California, is a leading retailer of off-price apparel and home fashion accessories. Valued at $49.3 billion by market cap, the company provides designer apparel, accessories, footwear, and home goods under its flagship brands, Ross Dress for Less and dd's DISCOUNTS. The leading off-price retailer is expected to announce its fiscal fourth-quarter earnings for 2025 on Tuesday, Mar. 4.
Ahead of the event, analysts expect ROST to report a profit of $1.65 per share on a diluted basis, down 9.3% from $1.82 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For FY2025, analysts expect ROST to report an EPS of $6.17, up 11% from $5.56 in fiscal 2024. Its EPS is expected to rise 8.3% year over year to $6.68 in fiscal 2026.
ROST stock has underperformed the S&P 500’s ($SPX) 25.3% gains over the past 52 weeks, with shares up 7.6% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 32.9% gains over the same time frame.
ROST’s underperformance over the past year stems from its reliance on physical stores amid the shift to online shopping, coupled with growing competition in the discount retail sector, which has pressured margins and market share.
On Nov. 21, ROST shares closed up more than 2% after reporting its Q3 results. Its EPS of $1.48 surpassed Wall Street expectations of $1.39. However, the company’s revenue was $5.1 billion, falling short of Wall Street forecasts of $5.2 billion. ROST expects full-year EPS to be between $6.10 and $6.17.
Analysts’ consensus opinion on ROST stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 14 advise a “Strong Buy” rating, and seven give a “Hold.” ROST’s average analyst price target is $171.63, indicating a potential upside of 15% from the current price levels.
