Ross Stores Announces First Quarter Earnings Results (ROST)

Ross Stores, Inc. (ROST) today announced its earnings results for the most recent quarter, revealing a diluted earnings per share of $1.47, which exceeded analysts’ expectations by $0.03. However, the company reported a significant revenue miss, with actual revenue coming in at -$34,409, falling short of the estimated $4.95 billion. This stark contrast between earnings and revenue highlights the challenges Ross Stores faced during the quarter.

Key Highlights:

• Ross Stores, Inc. reported earnings per share of $1.47 for Q1 2025, slightly up from $1.46 in Q1 2024.
• The company experienced a net income of $479 million, down from $488 million year-over-year.
• Sales for Q1 2025 totaled $5.0 billion, with comparable store sales remaining flat compared to the previous year.
• CEO Jim Conroy noted significant month-over-month improvement in sales performance throughout the quarter.
• The company repurchased 2.0 million shares for $263 million under a $2.1 billion buyback program.
• Due to macroeconomic uncertainties, the company has withdrawn its annual sales and earnings guidance, providing only a second-quarter outlook.

Summary: In its first-quarter earnings release for 2025, Ross Stores, Inc. reported earnings per share of $1.47, a slight increase from $1.46 in the same quarter last year. The company’s net income was $479 million, down from $488 million in the previous year, while sales reached $5.0 billion, with comparable store sales remaining flat. CEO Jim Conroy highlighted a significant improvement in monthly sales performance throughout the quarter, despite a slow start to the spring selling season. The company also executed a share repurchase program, buying back 2.0 million shares for $263 million.

Looking ahead, Ross Stores has withdrawn its annual sales and earnings guidance due to ongoing macroeconomic and geopolitical uncertainties, particularly concerning inflation and trade policies. For the second quarter, the company projects comparable store sales to be flat to up 3%, with earnings per share expected to be between $1.40 and $1.55. Conroy emphasized the importance of focusing on controllable factors during these uncertain times, stating, “Our focus remains on delivering value to our customers while enhancing shareholder returns through disciplined financial management.”

Ross Stores, Inc. (ROST) has shown a remarkable resilience in its stock price, with a notable increase of 12.69% over the past month alone. This upward momentum reflects investor confidence, likely buoyed by the company’s impressive two-year compound annual growth rates (CAGR) in earnings per share (EPS) at 20.81% and free cash flow at an impressive 25.74%. The price-to-earnings ratio of 24.18 suggests that while the stock may be trading at a premium, the market is willing to pay for its strong growth potential. Additionally, Ross’s return on invested capital stands at a robust 37.83%, indicating effective management and a solid business model. With a net profit margin of nearly 10%, the company demonstrates its ability to convert sales into actual profit, further enhancing its appeal to investors. Over the past year, the stock has appreciated by 16.63%, showcasing its resilience in a fluctuating market. Overall, Ross Stores appears well-positioned for continued growth, making it a compelling option for investors looking for stability and performance in the retail sector.

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brand names. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company’s Ross Dress for Less stores sell its products at department and specialty stores primarily to middle income households; and dd’s DISCOUNTS stores sell its products at department and discount stores for households with moderate income. As of July 5, 2022, it operated approximately 1,950 stores under the Ross Dress for Less and dd’s DISCOUNTS name in 40 states, the District of Columbia, and Guam. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.