Update shared on27 Aug 2025
Fair value Increased 3.33%Ross Stores’ analyst price target was raised to $158.88, reflecting increased confidence from strong Q2 results, easing tariff pressures, improved earnings visibility, and expectations for margin expansion, particularly as consumer demand strengthens.
Analyst Commentary
- Solid Q2 results, with comps accelerating and demand ramping up, leading to increased confidence in near-term performance.
- Tariff pressures are easing faster than anticipated, with effective mitigation strategies expected to further abate margin impact through Q3 and Q4.
- Improved earnings visibility and reinstatement of FY25 guidance after previous withdrawal, providing reassurance to investors.
- Shift in pack-away expense timing and easing cost headwinds seen as supportive for Q4 profitability.
- Expectations for accelerated comparable sales and EBIT margin expansion over the next three years, particularly benefiting from stronger lower-to-middle income consumer demand.
What's in the News
- Ross Stores provided earnings guidance projecting comparable store sales growth of 2–3% and 2025 EPS of $6.08 to $6.21, both below the prior year's results.
- The company repurchased 1.9 million shares for $262 million, completing 3.37% buyback under its ongoing program.
- Ross opened 28 Ross Dress for Less and three dd’s DISCOUNTS stores across 16 states and Puerto Rico, progressing toward its goal of 90 new stores in fiscal 2025.
- New store openings announced in Ashwaubenon, San Francisco, and Adrian (MI), with each location supporting local employment and charitable donations.
Valuation Changes
Summary of Valuation Changes for Ross Stores
- The Consensus Analyst Price Target has risen slightly from $153.76 to $158.88.
- The Future P/E for Ross Stores has fallen slightly from 26.36x to 25.13x.
- The Consensus Revenue Growth forecasts for Ross Stores has risen slightly from 5.0% per annum to 5.1% per annum.
Disclaimer
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