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ROST Expands With 17 New Locations, Signals 2026 Growth Pipeline

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Key Takeaways

  • ROST opens 17 locations, 13 Ross Dress for Less and four dd's DISCOUNTS across 11 states.
  • ROST plans about 110 new stores in fiscal 2026, including roughly 85 Ross and 25 dd's DISCOUNTS.
  • ROST sees U.S. potential for about 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations long term.

Ross Stores, Inc. (ROST - Free Report) continues to advance its store expansion strategy, reinforcing its position in the off-price retail space. The company recently announced the opening of 17 new locations across the United States during February and March 2026, marking the first phase of its fiscal 2026 expansion plan. The latest additions include 13 Ross Dress for Less stores and four dd's DISCOUNTS outlets, reflecting the retailer’s ongoing efforts to broaden its value-focused retail footprint and capture incremental market share.

The new stores span 11 states, highlighting the company’s targeted geographic expansion strategy. Ross Dress for Less locations were added across the Mountain, Midwest and Northeast regions while strengthening the company’s presence in key Sunbelt markets. Meanwhile, dd’s DISCOUNTS expanded within its core states of California and Texas and debuted its first location in Utah. The company indicated that these openings represent the initial wave of its broader fiscal 2026 plan to launch approximately 110 stores, including around 85 Ross locations and 25 dd’s DISCOUNTS outlets, implying total unit growth of roughly 5% this year.

Management remains encouraged by the strong performance of stores opened in 2025, which has supported continued investment in new locations. According to the executive vice president of Property Development Richard Lietz, the latest openings are expected to bring both value-oriented shopping options to customers and new employment opportunities to local communities. The company also continued its long-standing philanthropic efforts by donating to local Boys & Girls Clubs of America chapters or First Book literacy partners in conjunction with each new store opening, supporting programs aimed at underserved youth.

Looking ahead, Ross Stores remains confident in its long-term store growth trajectory. Management sees significant whitespace for expansion and believes that the U.S. market can ultimately support about 2,900 Ross Dress for Less locations and 700 dd’s DISCOUNTS stores. With disciplined expansion and strong value positioning, the company appears well placed to sustain growth while reinforcing its leadership in the off-price retail segment.

What’s More?

Ross Stores operates a successful off-price retail model that focuses on offering branded apparel and home accessories at value-driven prices to middle-income shoppers. The company continues to benefit from consumers’ strong preference for value, which keeps traffic healthy across economic cycles. Its merchandising strategy, including micro-merchandising and well-curated assortments, helps improve product allocation and maintain attractive margins. Strong customer response to merchandise across categories, combined with effective marketing campaigns and in-store initiatives, has supported positive comparable sales trends and stronger customer engagement across regions.

The company is also expanding its store footprint while maintaining a solid financial position. Growth plans focus on increasing penetration in existing markets and entering new regions, with continued expansion across both the Ross Dress for Less and dd’s DISCOUNTS banners. At the same time, Ross Stores maintains a strong balance sheet with ample cash, manageable debt levels and disciplined capital allocation. Along with investing in store growth and operations, the company continues to reward shareholders through share repurchases and higher dividends, reflecting confidence in its long-term growth strategy and cash-generation capabilities.

Shares of this Zacks Rank #3 (Hold) company have gained 15.9% in the past three months compared with the industry’s growth of 10.7%.

ROST Stock's Price Performance

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Key Picks

Some better-ranked stocks are American Eagle Outfitters Inc. (AEO - Free Report) , Williams-Sonoma Inc. (WSM - Free Report) and Boot Barn Holdings Inc. (BOOT - Free Report) .

American Eagle is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15-25 years. It 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 American Eagle’s fiscal 2026 sales indicates growth of 3.6% from the year-ago reported number, while earnings suggest a year-over-year decline of 16%. AEO has a trailing four-quarter earnings surprise of 37.6%, on average.

Williams-Sonoma is a multichannel specialty retailer of premium-quality home products. It carries a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Williams-Sonoma’s fiscal 2025 sales indicates growth of 1.9% from the previous year’s reported figure, while the estimate for earnings suggests a year-over-year decline of 1%. WSM has a trailing four-quarter average earnings surprise of 8.6%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings indicates growth of 17.6% and 26%, respectively, from the year-ago reported numbers. BOOT has a trailing four-quarter earnings surprise of 4.9%, on average.

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