With shifting consumer trends, digital expansion, cost cuts, and tariff challenges, find out whether Ross Stores or Dollar Tree is a better pick now.
I maintain a hold rating on Ross Stores due to persistent consumer weakness and new tariff headwinds impacting margins and earnings visibility. Despite a solid Q1'25 and strong April sales cadence, management's withdrawal of FY25 guidance signals ongoing uncertainty in demand and profitability. ROST's heavy reliance on Chinese imports exposes it to significant tariff risks, with mitigation strategies unlikely to offset near-term margin pressures.
A new economic regime is hitting the stock market's future like never before. With the developing trade tariffs rolled out by President Trump recently, economists and analysts are now scrambling to find a path forward when it comes to growth and activity, not to mention margins and earnings for companies exposed to the new costs that will come about from tariffs in the coming months and quarters.
Investors with an interest in Retail - Discount Stores stocks have likely encountered both Dollar General (DG) and Ross Stores (ROST). But which of these two stocks is more attractive to value investors?
ROST posts strong Q1 results, exceeding estimates as sales pick up pace and cosmetics lead category gains.
Initiating Ross Stores with a 'Buy' rating and $160 fair value, despite flat Q1 SSS and weak near-term guidance. Tariffs and weak consumer confidence are near-term headwinds, but Ross's off-price model and store expansion support long-term growth. Ross's generous capital allocation—strong free cash flow, dividends, and buybacks—reinforces shareholder value.
Ross Stores, Inc. (NASDAQ:ROST ) Q1 2025 Earnings Conference Call May 21, 2025 4:15 PM ET Company Participants James Conroy - Chief Executive Officer Adam Orvos - Executive Vice President and Chief Financial Officer Michael Hartshorn - Group President and Chief Operating Officer Conference Call Participants Matthew Boss - JPMorgan Lorraine Hutchinson - Bank of America Mark Altschwager - Baird Tracy Kogan - Citigroup Michael Binetti - Evercore ISI Alexandra Straton - Morgan Stanley Chuck Grom - Gordon Haskett Brooke Roach - Goldman Sachs Juliana Duque - Wells Fargo Securities Simeon Siegel - BMO Capital Markets Dana Telsey - Telsey Advisory Group Aneesha Sherman - Bernstein Marni Shapiro - The Retail Tracker Laura Champine - Loop Capital Markets Corey Tarlowe - Jefferies Jessica Taylor - Deutsche Bank Angus Kelleher-Ferguson - Barclays Operator Good afternoon and welcome to the Ross Stores First Quarter 2025 Earnings Release Conference Call. The call will begin with prepared comments by management followed by a question-and-answer session.
Ross Stores (ROST) came out with quarterly earnings of $1.47 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.46 per share a year ago.
The discount department store chain said it was off to a slow start in the first quarter, and withdrew its full-year outlook as tariffs are expected to drag on earnings.
Ross Stores (NASDAQ: ROST) is set to announce its fiscal first-quarter earnings on Thursday, May 22, 2025, with analysts forecasting earnings of $1.43 per share and $4.96 billion in revenue. This would indicate a 3% decrease in earnings year-over-year and a 2% increase in sales compared to last year's figures of $1.47 per share and $4.86 billion in revenue.
Evaluate the expected performance of Ross Stores (ROST) for the quarter ended April 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
ROST's Q1 results are likely to reflect solid execution of its off-price model and store expansion strategy, though macroeconomic challenges may weigh.