Discount apparel and home goods retailer Ross Stores Inc. is set to release second-quarter earnings on Thursday, with Wall Street expecting a 24.36% year-over-year increase in earnings per share to $1.94 and an 11.21% rise in revenue to $6.15 billion.
The outlook follows a first-quarter report in May that exceeded expectations, with revenue of $6.01 billion topping forecasts by 7.14% and adjusted EPS of $2.02 beating the $1.71 consensus by 18.13%. Same-store sales growth of 17% marked the strongest performance in the company’s 40-year history, underscoring sustained consumer demand for value-driven retail amid broader economic uncertainty.
Ross Stores’ stock closed Wednesday at $234.69, near its 52-week high of $257, with a market capitalization of $75.28 billion. Analysts at UBS and elsewhere have cited the retailer’s improved access to branded merchandise, expanded assortments, and strategic inventory investments as key drivers of its outperformance. The company opened 47 new stores in June and July, bringing its year-to-date total to roughly 110 locations, with plans to continue expanding its footprint.
Consensus price targets reflect optimism, with a median target of $257.50 implying a 9.7% upside from current levels. The stock’s forward price-to-earnings ratio stands at 30.49, while projected annual EPS growth is estimated at 16.44%. Among 20 analysts covering the stock, 14 rate it a Buy, with EPS estimates rising 1.11% over the past two months and revenue estimates increasing by 0.38% in the same period.
Gross profit margins have remained robust at 32.74% over the trailing 12 months, supported by disciplined merchandising and cost controls. Analysts at UBS have highlighted opportunities for Ross to further gain market share through enhanced marketing and in-store execution, particularly as consumers across income levels prioritize value in their spending decisions.
