Ross Stores, Inc.
Executive Summary
About Ross Stores, Inc. Ross Stores, Inc. Is a leading off-price apparel and home fashion retailer in the United States.
We operate through two concepts: Ross Dress for Less and dd’s DISCOUNTS.
Our off-price retailing strategy allows us to offer branded merchandise for sale at prices that typically range from 20% to 60% lower than prices at department and speciality stores.
Company Overview
Ross Stores, Inc. is the parent company of Ross Dress for dds DISCOUNTS. Usually the prices at Ross Stores, Inc. are 20 to 60 per cent lower than what you would pay at a department store. Ross Stores, Inc. is known for its lower prices.
Industry Overview
The U.S. Off-price retail performance remained solid in the US during Fiscal Year 2025. Inflation, a higher cost of living and a focus on value on the part of the consumer continue to drive customers to value-oriented retailers such as Burlington Stores, TJX Companies and Ross Stores.
Financial Performance Analysis
Currency: All figures are in USD Millions unless otherwise stated.
Financial Summary Table
Revenue Trend Data
Revenue Segment Breakdown
Key Financial Ratios
SWOT Analysis
Strengths | Weaknesses |
|---|---|
Strong off-price retail business model | Operations limited to the U.S. market |
Debt-free balance sheet | Limited e-commerce presence |
Opportunities | Threats |
|---|---|
Expansion into new U.S. markets | Intense competition from TJX and Burlington |
Growth of dd's DISCOUNTS stores | Inflation affecting consumer purchasing power |
Peer / Competitor Comparison
Company | Revenue (USD Billion) | Operating Margin | Stores |
|---|---|---|---|
Ross Stores | 21.1 | 11.2% | 2,200+ |
TJX Companies | 56.4 | 11.6% | 5,000+ |
Burlington Stores | 10.6 | 8.5% | 1,100+ |
Nordstrom | 15.0 | 4.2% | 350+ |
Conclusion
The retailer's 2025 financial year proved to be another year of steady growth for Ross Stores despite inflationary challenges and tight consumer spending. While some difficulties such as increasing operating expenses, worker shortages, and fierce competition are ongoing, Ross Stores is perfectly poised to seize the long-term opportunity the off-price retail sector offers, and solid finances, capital discipline, and its operating structure give a promising look into the future of the business.
References & Sources
- Ross Stores annual report
- Ross Stores Investor Relations