Ross Stores Inc.’s (ROST - Analyst Report) expansion efforts on the Ross Dress for Less and dd’s DISCOUNTS stores divisions appear to be in full swing. Evidently, the company opened a couple of new stores, one each in Florida and Colorado, over the weekend.
While this marks the company’s debut in Colorado, the new Florida store brings dd’s DISCOUNTS store count to 30 in the state, simultaneously taking its countrywide store count across 15 states to 193. Clearly, Ross Stores is well on track to achieve its target of opening nearly 20 dd’s DISCOUNTS stores in fiscal 2016.
The Colorado store, which spans an area of 20,000 square feet, is housed in Greeley, in the University Square Plaza at Highway 34 and 11th Avenue, north of Denver. On the other hand, the dd’s DISCOUNT store in Florida found place in the Cross Country Plaza at Okeechobee Boulevard and N. Military Trail. Notably, this 19,000-square foot store joined a Ross Dress for Less outlet that operates in the same mall.
As mentioned earlier, Ross Stores has been consistently focused on expanding its business in an attempt to maintain the growth trajectory. In fact, in addition to the aforementioned stores, the company opened three more dd’s DISCOUNTS stores in Texas on Sep 24 — one each in Killeen, Harrisburg and Rosenberg.
Further, in the last reported quarter, the company opened 31 new stores including 24 Ross Dress For Less and 7 dd's DISCOUNTS, thus meeting its planned store expansion target for the quarter. This had also marked the second leg of expansion under the company’s fiscal 2016 plan to add about 90 stores comprising 70 Ross Dress For Less and 20 dd's DISCOUNTS.
In the third quarter, the company intends to open about 34 new stores, 25 Ross Dress for Less and 9 dd’s DISCOUNTS. Such initiatives make us positive on the company’s growth potential and its ability to achieve the target of 2,500 stores, comprising 2,000 Ross Dress for Less and 500 dd’s DISCOUNTS, 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 is still immense room for growth, going forward. The company currently 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., again carrying a Zacks Rank #3, is a footwear and accessories retailer, which is going to hit the 500 store count 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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