We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ross Stores Progresses Well on Store Expansion & Other Strategic Plans
Read MoreHide Full Article
Ross Stores, Inc. (ROST - Free Report) has been benefiting from initiatives, including store expansion plans and its off-price retailing model. It has been offering branded and designer goods at discounted prices. This has helped it maintain customer loyalty and adapt to changing consumer preferences. ROST has been expanding its foothold by introducing stores and extending its capabilities.
Let’s delve deeper.
ROST’s Solid Strategies Boost Sales
Ross Stores’ consistent execution of store expansions over the years is quite appealing. The company has concluded its store expansion plans for fiscal 2024 by opening 47 stores. These new stores are likely to capture extra sales and boost overall profits. ROST has been expanding its foothold by introducing stores and extending its capabilities.
Ross Stores has been reinforcing its presence across both the existing and new markets. The aforesaid openings highlight its efforts to expand stores are quite on track. This also indicates the company's continued expansion strategy. Management expects to expand “Ross Dress for Less” to 2,900 stores and dd’s DISCOUNTS to 700 stores in the long term.
In addition, the company operates a chain of off-price retail apparel and home accessories stores, which targets value-conscious shoppers. ROST has a proven business model as the competitive bargains it offers continue to make its stores attractive destinations for customers.
The off-price model offers a strong value proposition and micro-merchandising that drive better product allocation and margins. Ross Stores continues to gain from positive customer response for its merchandise across both banners.
ROST Stock’s Valuation
Ross Stores stock is trading at an appealing valuation relative to the industry. Going by the price/earnings ratio, the stock is currently trading at 22.37 on a forward 12-month basis, lower than 30.37 for the industry. Also, the stock is trading lower than its high of 26.70.
Image Source: Zacks Investment Research
Final Words on ROST
The aforementioned tailwinds have been bolstering ROST’s comparable-store sales, which rose 1% in the third quarter of fiscal 2024 on increased customer traffic and basket size. This indicates that a higher number of shoppers visited Ross Stores and purchased more items per visit. This led to a sales improvement of 7% year over year in the same quarter.
Analysts seem quite optimistic about the company. For fiscal 2025, the Zacks Consensus Estimate for ROST’s sales and EPS implies growth of 5.6% and 8.2%, respectively, year over year.
Shares of this apparel and accessories dealer have gained 5.7% compared with the industry’s 8.4% growth in the past six months. ROST currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 13.6% from the year-ago figure. DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.
Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 6.8%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 13.4% from the year-ago figure.
Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2. ANF delivered an earnings surprise of 16.8% in the last reported quarter.
The consensus estimate for Abercrombie’s current financial-year sales indicates growth of 13% from the year-ago figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ross Stores Progresses Well on Store Expansion & Other Strategic Plans
Ross Stores, Inc. (ROST - Free Report) has been benefiting from initiatives, including store expansion plans and its off-price retailing model. It has been offering branded and designer goods at discounted prices. This has helped it maintain customer loyalty and adapt to changing consumer preferences. ROST has been expanding its foothold by introducing stores and extending its capabilities.
Let’s delve deeper.
ROST’s Solid Strategies Boost Sales
Ross Stores’ consistent execution of store expansions over the years is quite appealing. The company has concluded its store expansion plans for fiscal 2024 by opening 47 stores. These new stores are likely to capture extra sales and boost overall profits. ROST has been expanding its foothold by introducing stores and extending its capabilities.
Ross Stores has been reinforcing its presence across both the existing and new markets. The aforesaid openings highlight its efforts to expand stores are quite on track. This also indicates the company's continued expansion strategy. Management expects to expand “Ross Dress for Less” to 2,900 stores and dd’s DISCOUNTS to 700 stores in the long term.
In addition, the company operates a chain of off-price retail apparel and home accessories stores, which targets value-conscious shoppers. ROST has a proven business model as the competitive bargains it offers continue to make its stores attractive destinations for customers.
The off-price model offers a strong value proposition and micro-merchandising that drive better product allocation and margins. Ross Stores continues to gain from positive customer response for its merchandise across both banners.
ROST Stock’s Valuation
Ross Stores stock is trading at an appealing valuation relative to the industry. Going by the price/earnings ratio, the stock is currently trading at 22.37 on a forward 12-month basis, lower than 30.37 for the industry. Also, the stock is trading lower than its high of 26.70.
Image Source: Zacks Investment Research
Final Words on ROST
The aforementioned tailwinds have been bolstering ROST’s comparable-store sales, which rose 1% in the third quarter of fiscal 2024 on increased customer traffic and basket size. This indicates that a higher number of shoppers visited Ross Stores and purchased more items per visit. This led to a sales improvement of 7% year over year in the same quarter.
Analysts seem quite optimistic about the company. For fiscal 2025, the Zacks Consensus Estimate for ROST’s sales and EPS implies growth of 5.6% and 8.2%, respectively, year over year.
Shares of this apparel and accessories dealer have gained 5.7% compared with the industry’s 8.4% growth in the past six months. ROST currently carries a Zacks Rank #2 (Buy).
Other Solid Picks From the Industry
We have highlighted three other top-ranked stocks, namely Deckers (DECK - Free Report) , Boot Barn (BOOT - Free Report) and Abercombie (ANF - Free Report) .
Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 13.6% from the year-ago figure. DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.
Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 6.8%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 13.4% from the year-ago figure.
Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2. ANF delivered an earnings surprise of 16.8% in the last reported quarter.
The consensus estimate for Abercrombie’s current financial-year sales indicates growth of 13% from the year-ago figure.