S& P 500 hits all time highs U.S.-Japan trade deal optimism
DUBLIN, Calif. - Ross Stores, Inc. (NASDAQ:ROST), a notable player in the off-price retail sector with a market capitalization of $44.9 billion, has recently inaugurated 19 new stores across 14 states as part of its ambitious expansion plan for fiscal 2025. According to InvestingPro analysis, the company maintains strong financial health with liquid assets exceeding short-term obligations and operates with a moderate debt level. The company, which operates the Ross Dress for Less and dd’s DISCOUNTS chains, aims to open approximately 90 new stores this year, with the majority being Ross locations.
This March, the retailer has strengthened its presence in the United States by adding 16 Ross and three dd’s DISCOUNTS stores. The expansion particularly targets newer markets for Ross in Connecticut, Minnesota, New Jersey, and New York, while dd’s DISCOUNTS has grown in its existing markets of California, Georgia, and Texas.
Executive Vice President Richard Lietz expressed confidence in the growth trajectory of both brands, citing a total of 2,205 operational stores across 44 states, the District of Columbia, and Guam. According to Lietz, the company’s long-term vision includes increasing Ross locations to 2,900 and dd’s DISCOUNTS to 700 stores nationwide, leveraging the consumer demand for value and convenience. The company’s expansion strategy is supported by solid fundamentals, with InvestingPro data showing a 3.7% revenue growth and consistent profitability over the last twelve months. Subscribers can access 12 additional exclusive ProTips and comprehensive financial analysis through the Pro Research Report.
Ross Stores, Inc., headquartered in Dublin, California, is a Fortune 500 and Nasdaq 100 (NASDAQ:ROST) company with reported revenues of $21.1 billion for fiscal 2024. Ross Dress for Less is currently the largest off-price apparel and home fashion chain in the U.S., with 1,847 stores offering significant discounts on name brand and designer goods. Additionally, the company operates 358 dd’s DISCOUNTS locations, providing a more moderately-priced assortment to consumers.
The latest store openings reflect the company’s strategic efforts to expand its retail footprint and capitalize on the growing market for discount retail. Trading at a P/E ratio of 21.5 and currently near its 52-week low, Ross Stores, Inc. continues to enhance its position in the off-price retail market, aiming to meet the evolving needs of cost-conscious shoppers. For detailed valuation metrics and growth potential analysis, investors can explore the complete financial health assessment on InvestingPro.
This news is based on a press release statement from Ross Stores, Inc.
In other recent news, Ross Stores has experienced several adjustments to its stock price targets from different analyst firms. UBS revised its price target for Ross Stores to $163, down from $168, while maintaining a Neutral rating, citing stable fundamentals despite economic challenges for its core customers. TD Cowen also lowered its price target from $175 to $169 but retained a Buy rating, pointing to consistent same-store sales growth outside of the COVID-19 years. Bernstein adjusted its target to $163 from $165, maintaining a Market Perform rating, and highlighted challenges with customer traffic affecting earnings growth.
Telsey Advisory Group reduced its price target significantly to $150 from $175, keeping a Market Perform rating, due to sales and margin concerns despite some positive operating margin results. Jefferies cut its price target to $145 from $161, maintaining a Hold rating, following a strong fourth-quarter performance but expressing caution about future sales based on management’s guidance. These developments reflect a range of perspectives on Ross Stores’ performance and outlook, with analysts noting both challenges and potential opportunities in the current economic environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.