Ross Stores Keeps Retail Enthusiasm Going As Earnings Loom, Wall Street Watches Demand And Tariff Tension

Ross Stores (ROST) earnings are in focus this week as investors and Wall Street focus on the off-price retailer’s update on the impact from tariffs and its ability to keep up with demand at a time when higher prices have led to cautious buying behaviour from consumers. 

Ross Stores is expected to post second-quarter revenue of $5.55 billion and earnings per share (EPS) of $1.54, according to data compiled by Fiscal AI.

Retail sentiment on Ross Stores remained unchanged in the ‘bullish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits. 

Telsey Advisory Group analyst Dana Telsey noted that sales progressed nicely month-over-month throughout the second quarter, leading to the broad-based outperformance relative to consensus forecasts. The brokerage maintained its ‘market perform’ rating and $150 price target on the stock.

Telsey added that tariff pressure is expected to continue near-term, and, with a still uncertain macro and geopolitical environment, the company has been anticipating disruption across the industry from inflationary pressures resulting in higher prices and competitive closeout sales.

“While Ross Stores believes it is well-positioned to benefit from market disruption with opportunistic buys, tariff pressure near term led to a softer profitability outlook for Q2,” Telsey stated.

The analyst added that over the past few quarters, the company has made several efforts to improve its assortment by featuring more branded products. “The branded strategy is resonating, and the entire assortment has been repositioned to bring branded value to the consumer, with a material focus on the ladies’ business,” she said.

Shares of Ross Stores are down nearly 3% this year and have fallen marginally in the last 12 months.

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