Ross Stores Inc. (ROST - Free Report) has been consistent with the execution of its store expansion plans for the past several years. After the early completion of its store opening target for fiscal 2018 in October, the company opened its first set of stores for fiscal 2019. Notably, it inaugurated 28 stores across 12 states in February 2019 and so far in March. These included 22 Ross and six dd’s DISCOUNTS stores. These store openings mark the completion of the company’s planned store expansion for first-quarter fiscal 2019.
Furthermore, this first round of store openings keeps the company on track to meet its target of inaugurating 100 stores in fiscal 2019 — including 75 Ross and 25 dd’s DISCOUNTS outlets. However, these numbers exclude its plans to relocate or close 10 existing stores during the fiscal year.
With this, the company now operates nearly 1,745 Ross stores and dd’s DISCOUNTS stores across 38 states, the District of Columbia and Guam. Over the long term, it expects to expand the Ross chain of stores to 2,400 locations alongside operating about 600 dd’s DISCOUNTS stores.
Other Strategies Bode Well
Alongside robust store-opening plans, Ross Stores continues to focus on merchandising organization through investments in workforce, processes and technology to keep itself on the growth trajectory. The company has a proven business model as the competitive bargains that it offer continue to make its stores attractive for customers from all economic backdrops.
Moreover, Ross Stores’ off-price model offers strong value proposition and micro-merchandising that drive better product allocation and margins. These actions make us confident of its growth potential alongside its ability to sustain top- and bottom-line growth trends.
In fact, these actions are reflected in the company’s share price, which reflects a 12.3% rally in the past three months, faring better than the industry’s growth of 7.4%. Currently, Ross Stores carries a Zacks Rank #3 (Hold), with a VGM Score of A.
Looking for Better-Ranked Retail Picks? Count on These
Costco Wholesale Corp. (COST - Free Report) has a long-term earnings growth rate of 9.5% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Target Corp. (TGT - Free Report) has a long-term earnings growth rate of 7%. It currently carries a Zacks Rank #2.
Zumiez Inc. (ZUMZ - Free Report) has an impressive long-term earnings growth rate of 12.5% and a Zacks Rank of 2.
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