Ross Stores: EPS Rises, Revenue Dips
Ross Stores reported strong earnings, but revenue and a cautious outlook indicate potential challenges ahead.
Ross Stores (NASDAQ:ROST), known for its off-price retail model, released fourth-quarter earnings for the fiscal year ending Feb. 3, 2025, on March 4, 2025. EPS exceeded analyst expectations, reaching $1.79 compared to the forecasted $1.66, aided by a one-time sale. However, revenue fell short at $5.9 billion, missing both the estimated $5.943 billion and the prior year's $6 billion. Despite these mixed results, Ross maintained a stable operating margin, underpinning its strategic strength in cost management.
Source: Analyst estimates for the quarter provided by FactSet.
Ross Stores stands as a leader in the off-price retail sector. Its unique model revolves around buying excess inventory and offering substantial discounts on well-known brands. In recent times, Ross focused on expanding its footprint through the addition of new stores, growing from 2,109 locations last year to 2,186 by the end of the current fiscal year.
