Operating through Ross Dress for Less and dd’s DISCOUNTS outlets, Ross Stores Inc. (ROST - Free Report) has been strongly focused on its store expansion strategy, to keep itself on the growth trajectory. This is well-evident from the store growth activities undertaken by Ross Stores in the past.
Evidently, this off-price retailer opened 34 new stores in September and October, which include 25 Ross Dress For Less and 9 dd's DISCOUNTS stores in 16 different states. In fact, by introducing stores in North and South Dakota, and Colorado – Ross Stores also marked its presence in two more states.
The new stores conform to the company’s strategy of expanding its presence in both existing as well as newer markets that commenced in 2011.
On delving deeper into Ross Stores’ expansion strategy, we note that in the last reported quarter, the company opened 31 new stores including 24 Ross Dress For Less and 7 dd's DISCOUNTS. This had 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. Notably, with the recently opened 34 new locations, the company achieved its total expansion target for fiscal 2016.
Including the latest store openings, Ross Dress For Less now operates 1,342 stores in 36 states, the District of Columbia and Guam, while dd's DISCOUNTS has 193 locations in 15 states.
Well, the aforementioned factors indicate that there is still immense room for growth, going forward. Also, these activities make us positive on this Zacks Rank #2 (Buy) 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.
Stocks that Warrant a Look
Other well-ranked stocks in the retail sector include Burlington Stores Inc. (BURL - Free Report) , with a Zacks Rank #1 (Strong Buy), Big Lots Inc. (BIG - Free Report) and L Brands Inc. (LB - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores has a positive record of earnings surprises in the trailing four quarters with an average beat of 16.1%. The stock has seen positive estimate revisions in the last 60 days.
Big Lots has an average earnings beat of 8% in the last four quarters and estimates have witnessed an uptrend in the last 60 days.
L Brands has to its credit a favorable surprise trend with an average beat of 8.6% in the trailing four quarters and estimates have moved up in the last 30 days.
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