Ross Stores Inc. (ROST - Analyst Report) remains focused on staying on the growth trajectory through the constant expansion of its two divisions – Ross Dress for Less and dd’s DISCOUNTS stores. In connection with this, the company’s dd’s DISCOUNTS division announced plans to open three new stores in Texas, one each in Killeen, Harrisburg and Rosenberg.
While the Killeen store will be housed in the Killeen Marketplace at Central Texas Expressway and Illinois Avenue – north of Austin, the new Harrisburg store will be located in the Harrisburg Plaza at Harrisburg Boulevard and Wayside Drive – just southeast of downtown Houston. Notably, the dd’s DISCOUNTS store in Killeen will join the Ross Dress for Less store, which also operates in the same mall. Both these stores span over 22,000 square feet each.
Finally, the Rosenberg store that spreads across 20,000 square feet will find place in the Rose-Rich Shopping Center at Avenue H and Lane Drive, southwest of Houston. The three aforementioned stores, which are slated to open on Sep 24, 2016, will take the dd’s DISCOUNTS’ store count in Texas to 42, whereas its total count across the 14 states where it operates, will rise to 191.
As mentioned above, Ross Stores has been consistently focused on ramping up expansion. Evidently, in the last reported quarter, the company opened 31 new stores including 24 Ross Dress For Less and 7 dd's DISCOUNTS stores, thus completing its planned store expansions for the quarter. This also marked the second leg of expansion under the company’s fiscal 2016 plan to add about 90 stores (70 Ross Dress For Less and 20 dd's DISCOUNTS).
Well this is not it. In the third quarter of fiscal 2016, the company intends to open about 34 new stores, comprising 25 Ross and 9 dd’s DISCOUNTS stores. Such actions make us confident of the company’s growth potential and its ability to successfully attain the target of expanding its store count to 2,500, comprising 2,000 Ross and 500 dd’s DISCOUNTS stores, over the longer term.
While Ross stores currently operates roughly 1,500 off-price home fashion and apparel stores across 34 states, the District of Columbia and Guam, the aforementioned factors indicate that there exists immense store growth potential for the company, going forward. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apart from Ross Stores, there are many other players like Dick's Sporting Goods Inc. (DKS - Analyst Report) , Nordstrom Inc. (JWN - Analyst Report) and DSW Inc. (DSW - Snapshot Report) , which are firing on all cylinders with regard to expansion of store base.
While Dick's Sporting with a Zacks Rank #3 (Hold) operates as a full-line sporting goods retailer through more than 645 stores, Nordstrom is a leading fashion specialty retailer that currently operates 334 stores and carries a Zacks Rank #2. DSW Inc., also carrying a Zacks Rank #3, is a footwear and accessories retailer, with its store count likely to approach the 500 mark soon. Notably, all three aforementioned stocks have witnessed an uptrend in the Zacks Consensus Estimate for fiscal 2016, over the past 60 days.
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