Companies /Consumer Cyclical

Ross Stores Inc

NASDAQ: ROST Apparel Retail
$232.63
▼ $0.77 (−0.33%) today
Markets open · 11:28am ET

Q1 2025 Earnings

Reported May 22, 2025, 4:02pm ET · SEC source
$1.47
Beat +2.46%
EPS · est. $1.43 GAAP
$5.0B
Beat +0.58%
Revenue · est. $5.0B
−13.4%
Trailing market
ROST vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%+10%May 22May 23report 4:02pm ETearnings−0.8%−1.3%
−5%0+5%+10%May 22May 23earnings−0.8%−1.3%
ROST −1.3%S&P 500 −0.8%
−5%0+5%+10%May 22May 23report 4:02pm ETearnings−1.2%−1.3%
−5%0+5%+10%May 22May 23earnings−1.2%−1.3%
ROST −1.3%NASDAQ −1.2%
−5%0+5%+10%May 21May 30report 4:02pm ETearnings+0.9%+4.0%
−5%0+5%+10%May 21May 30earnings+0.9%+4.0%
ROST +4.0%S&P 500 +0.9%
−5%0+5%+10%May 21May 30report 4:02pm ETearnings+0.9%+4.0%
−5%0+5%+10%May 21May 30earnings+0.9%+4.0%
ROST +4.0%NASDAQ +0.9%
−9.85%
Day of report
+2.94%
Next session
+3.76%
One week
−7.75%
30 days

S&P 500 over the same 30 days: +5.66%.

Did ROST Beat Earnings? Q1 2025 Results

Ross Stores delivered a modest but clean beat in its fiscal first quarter of 2025, with GAAP diluted EPS of $1.47 edging past the $1.43 consensus by 2.46%, while revenue of $4.98 billion grew 2.6% year over year and topped estimates by 0.58%, results that management characterized as landing at the high end of its own expectations. The quarter got off to a sluggish start in February before sales momentum picked up meaningfully through March and April, helping lift the final numbers despite flat comparable store sales and a slight dip in net income to $479.25 million from $488.00 million a year earlier. The dominant story, however, was not what happened in the quarter but what lies ahead: Ross withdrew its full-year fiscal 2025 guidance entirely, citing tariff-related uncertainty given that more than half of its merchandise originates from China. For Q2, the company projected EPS of $1.40 to $1.55, a range that explicitly bakes in an estimated $0.11 to $0.16 per share tariff cost headwind, underscoring how materially trade policy has clouded the near-term outlook for even off-price retailers.

Key Takeaways
  • Monthly sales performance improved sharply after slower February start
  • Operating margin of 12.2% flat year-over-year
  • Comparable store sales flat versus prior year
  • Store count grew to 2,205 from 2,127 year-over-year

“Despite the slower start to the spring selling season in February, our monthly sales performance improved sharply, month after month, for the balance of the quarter. For the first quarter, sales and earnings performed at the high end of our expectations while operating margin of 12.2% was flat year-over-year.”

Ross Stores CEO, on the earnings call

Forward Guidance & Outlook

Ross Stores withdrew its previously provided full-year fiscal 2025 sales and earnings guidance due to heightened macroeconomic and geopolitical uncertainty, most notably evolving trade policies and prolonged inflation. For Q2 (13 weeks ending August 2, 2025), comparable store sales are projected to be flat to up 3% on top of a 4% gain last year. Q2 EPS is projected at $1.40 to $1.55, versus $1.59 in the prior-year period, with the guidance range including an approximate $0.11 to $0.16 per share cost impact from announced tariffs. The company expects pressure on profitability if tariffs remain at elevated levels.

ROST YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$2.0B$4.0B$4.9B$5.0BRevenue$1.4B$1.4BGross Profit$591.1M$606.5MOperating Income$488.0M$479.2MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.