Back to top

Image: Bigstock

Ross Stores (ROST) Expands Its Reach With 51 New Locations

Read MoreHide Full Article

Ross Stores, Inc. (ROST - Free Report) has expanded its store base with the opening of 43 Ross Dress for Less stores and eight dd's DISCOUNTS stores across 22 different states in September and October. This marked the successful realization of the company's store growth plans for fiscal 2023.

The store expansion was not confined to existing markets. Ross Dress for Less made its debut in New York and Minnesota, signifying the company's intention to reach new customer bases. Then again, dd's DISCOUNTS expanded its presence in California, Maryland, Tennessee and Texas, further solidifying its footprint in these areas.

Looking ahead, Ross Stores holds an optimistic long-term view for expansion, aspiring to eventually operate at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations. This forward-thinking approach reflects the company's confidence in the sustained demand for its products.

Per the latest update, the company operates 2,112 locations, including Ross Dress for Less and dd's DISCOUNTS, across 43 states, the District of Columbia and Guam. This extensive network of stores serves a diverse range of customers, offering affordable fashion and home products.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

What’s More?

The company's flagship brand, Ross Dress for Less, operates 1,765 stores across 43 states, the District of Columbia and Guam. It is renowned for providing high-quality, in-season, name-brand, and designer apparel, accessories, footwear and home fashions at substantial discounts. Shoppers can regularly find products priced 20-60% lower than those in department and specialty stores, making Ross Dress for Less a preferred choice for budget-conscious fashion enthusiasts.

Additionally, Ross Stores operates dd's DISCOUNTS, with 347 locations in 22 states. This brand offers a more budget-friendly assortment of first-quality, in-season, name-brand apparel, accessories, footwear and home fashions for the entire family. Shoppers can enjoy savings of 20-70% off moderate department and discount store regular prices every day, making it a suitable choice for those seeking affordability and quality.

Wrapping Up

Headquartered in Dublin, CA, Ross Stores holds a prominent place in the retail industry. Notably, the company reported revenues of $18.7 billion for fiscal 2022, underlining its financial strength and market presence. Sales for the second quarter of fiscal 2023 were $4.9 billion, up 7.7% year over year. Comparable store sales rose 5% in second-quarter fiscal 2023 against the 7% decline reported in the second quarter of 2022.

The company’s positive business momentum has been well-reflected in its share price, with the stock outperforming the industry. Shares of this Zacks Rank #1 (Strong Buy) company have rallied 33% in the past year compared with the industry’s growth of 5.1%.

Three Other Solid Picks

A few other top-ranked stocks in the same space are Urban Outfitters, Inc. (URBN - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and American Eagle Outfitters Inc. (AEO - Free Report) . These three companies currently sport a Zacks Rank #1 as well. You can see the complete list of today’s Zacks #1 Rank stocks here.

Urban Outfitters specializes in the retail and wholesale of general consumer products.

The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales indicates growth of 83.4% and 6.6% from the year-ago period’s reported figures. URBN has a trailing four-quarter average earnings surprise of 19.2%.

Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. ANF delivered a significant earnings surprise in the last reported quarter.

The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales implies growth of 10% from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 724.8%.

American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear.

The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 33% and 2.2% from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 43.2%.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in