ROSTNasdaqRetail-Family Clothing StoresUS GAAP · USD

Ross Stores, Inc

Ross Stores, Inc. operates two off-price retail chains in the United States: Ross Dress for Less and dd’s DISCOUNTS. The company sells first-quality, in-season apparel, footwear, accessories, and home fashions through a large store network focused on value-oriented shopping.

Ask about the company
Revenue22.8bn USD
+7.7 %y/y
Operating profit (EBIT)2,707m USD
+4.7 %y/y
EBIT margin11.9%
−0.3 ppy/y
Net income2,145m USD
+2.6 %y/y
Free cash flow2,208m USD
+34.9 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

0510152025bn USD2021: 12.5 bn USD20212022: 18.9 bn USD20222023: 18.7 bn USD2023: EBIT 2.0 bn USD20232024: 20.4 bn USD2024: EBIT 2.3 bn USD20242025: 21.1 bn USD2025: EBIT 2.6 bn USD20252026: 22.8 bn USD2026: EBIT 2.7 bn USD202622.82.7
RevenueOperating profit (EBIT)
Ask Clarifo about Ross Stores, Inc

Business

Share of revenue
Ross Dress for Less85 %

Off-price stores selling branded apparel, footwear, accessories, and home fashions at everyday discounts.

dd’s DISCOUNTS15 %

Value-oriented off-price stores offering more moderately priced apparel and home goods.

Customers

Ross serves value-driven households that want recognizable brands and designer labels at lower prices, with a core customer base from middle-income households. dd’s DISCOUNTS targets lower- to moderate-income shoppers in densely populated urban and suburban trade areas. Both banners appeal to customers seeking a treasure-hunt shopping experience and frequent assortment changes.

Ross Dress for Less shoppers

Middle-income families and individuals buying branded apparel, footwear, accessories, and home fashions at off-price discounts.

dd’s DISCOUNTS shoppers

Lower- to moderate-income customers buying more moderately priced off-price apparel and home goods.

Family household buyers

Households purchasing clothing and home items for multiple family members in one trip.

Strategy

Ross focuses on maintaining its off-price model by buying recognizable brands at strong discounts and matching assortments to local customer demand. The company also emphasizes store clustering, supply-chain capacity, and digital marketing to support traffic, convenience, and long-term store growth.

Preserve off-price value propositionShort term

The model depends on sourcing recognizable brands and passing savings to customers.

Expand store base and market densityMedium term

More stores and clustered locations improve penetration and operating leverage.

Invest in supply chain and distributionMedium term

Off-price retail requires flexible inventory flow and rapid store replenishment.

Strengthen customer reach through marketingShort term

Digital and social channels help communicate value and drive store traffic.

Geography

Ross Stores operates entirely in the United States and its territories, with stores across 43 states, the District of Columbia, and Guam. The business is concentrated in heavily populated urban and suburban markets, with especially large store presence in California, Texas, and Florida. Its distribution and headquarters footprint is also U.S.-based, which ties performance closely to domestic consumer spending and trade policy.

Risks

Ross is exposed to U.S. consumer spending cycles, inflation, tariffs, and competitive pressure in a fragmented retail market. Because most merchandise is sourced from China and stores are concentrated in a few states, trade policy, supply-chain disruption, and regional disasters can affect inventory flow, costs, and store operations.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Tariffs on goods sourced from China and other countries1Weak consumer spending and inflation2Competitive pressure in off-price and broader retail3Regional concentration in California, Texas, and Florida4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Tariffs on goods sourced from China and other countriesImpact: HighLikelihood: High

    More than half of goods sold originate from China, so tariff changes can raise costs and pressure margins.

    Exposure: Merchandise sourcing and pricing

  2. Weak consumer spending and inflationImpact: HighLikelihood: Medium

    Value retail depends on discretionary apparel demand and customer confidence.

    Exposure: Store traffic and ticket size

  3. Competitive pressure in off-price and broader retailImpact: MediumLikelihood: Medium

    The company competes with online, department, specialty, discount, and warehouse retailers.

    Exposure: Pricing and market share

  4. Regional concentration in California, Texas, and FloridaImpact: MediumLikelihood: Medium

    A large share of stores and distribution capacity is concentrated in a few states.

    Exposure: Store and supply-chain disruption

Ask Clarifo about Ross Stores, Inc

Accounting

Judgemental items
Merchandise inventory and shortage reserve

Inventory is a major asset and shrink estimates affect cost of goods sold and gross margin.

Impact: Lower-of-cost-or-NRV and shortage accruals

Packaway inventory

Goods warehoused for later release affect inventory levels and operating cash flow timing.

Impact: Inventory balance and cash flow

Self-insurance liabilities

Workers' compensation, general liability, and health care reserves depend on claims estimates.

Impact: Operating expenses and accrued liabilities

Seasonality

Sales are typically stronger in the second half of the year, affecting quarter-to-quarter comparability.

Impact: Revenue and margin comparability

Similar listed companies

Publicly listed companies with a comparable business focus.

Torrid Holdings Inc.

CURV · Retail-Apparel & Accessory Stores

Crocs, Inc.

CROX · Rubber & Plastics Footwear

Target Corporation

TGT · Retail-Variety Stores

Citi Trends Inc

CTRN · Retail-Apparel & Accessory Stores

Dillard's, Inc

DDS · Retail-Department Stores

KOHLS Corp

KSS · Retail-Department Stores

Last updated: 24/09/2026