Ross Stores, Inc. (ROST)

Ross Stores, Inc. has experienced positive stock momentum in the past six months. The company reported better-than-expected revenue in Q3 CY2025, with sales up 10.4% year-on-year to $5.6 billion, and GAAP profit of $1.58 per share, exceeding analyst estimates. Comparable store sales rose by a robust 7% in Q3 2025. Following these strong results, Ross Stores raised its annual profit forecast for fiscal year 2025, anticipating resilient demand for its discounted goods ahead of the holiday season. Analysts have responded positively, with several firms raising their price targets for ROST in late 2025 and early 2026, and the stock received an upgrade to a "Buy" rating from Zacks Rank in December 2025. The stock price increased by 26.16% between January 10, 2025, and January 9, 2026.

Demand for Ross Stores' products generally exhibits seasonality, with the fourth quarter (holiday season) being particularly important for off-price retailers. The company strategically manages its inventory, including a "packaway" strategy where deeply discounted, out-of-season merchandise is stored for future sale, to meet demand during peak seasons and maintain fresh inventory. This approach helps the company capture demand during crucial periods like the holiday season.

Ross Stores, Inc. operates in the Retail-Wholesale sector, specifically in the Apparel and Accessory Retail industry, and is a significant player in the Discount Department Stores industry. The company offers a wide assortment of in-season, first-quality, name-brand, and designer apparel, footwear, and accessories for the entire family, as well as home fashions. Ross Dress for Less primarily targets middle-income households, while dd's DISCOUNTS caters to moderate-income households.

As of July 2024, Ross Stores operates 1,795 Ross Dress for Less stores across 43 U.S. states, Washington, D.C., Puerto Rico, and Guam. The company also runs over 353 dd's DISCOUNTS stores in 22 states, predominantly in Sun Belt states. Key states with a high concentration of Ross stores include California, Texas, and Florida. The company maintains buying offices in New York and Los Angeles and operates several distribution centers across the United States, including locations in California, South Carolina, and Pennsylvania.

Ross Stores has maintained a strong brand reputation, built on its disciplined inventory buying, steady store expansion, and consistent returns on capital. The company's off-price model is considered resilient and tends to perform well even during economic downturns, as consumers seek value. In the past year, the company's reputation has been positively impacted by its strong financial performance, including a 7% surge in comparable store sales in Q3 2025, demonstrating its relevance as consumers focus on budgets. The successful expansion into new, high-density urban markets, such as the New York Metro area, has also validated the company's value proposition in diverse environments. There have been no widely reported events negatively affecting Ross Stores' reputation in the past year.

Ross Stores, Inc. is overwhelmingly controlled by institutional money managers, who hold a significant majority of the company's shares, with estimates ranging from approximately 48.37% to 86.86% of the stock. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., State Street Corp, JPMorgan Chase & Co, PRIMECAP Management Company, Geode Capital Management, LLC, Fidelity Management & Research, Millennium Management, D.E. Shaw, First Eagle Investment, T. Rowe Price Associates, Invesco Capital Management, and Robeco Institutional Asset Management B.V. Individual investors and insiders hold a smaller, but still significant, portion of the total shares.