Ross Stores, Inc. (NASDAQ: ROST) Q1 2025 Earnings Call | 05/23/2025

About this video

Ross Stores, Inc. (NASDAQ: ROST) reported Q1 2025 results on May 23, 2025, delivering a solid quarter that slightly exceeded Wall Street expectations despite ongoing margin pressures and macroeconomic uncertainties. Net sales rose 3% year-over-year to $5.0 billion, surpassing analyst estimates and reflecting continued consumer demand for off-price retail. Earnings per share (EPS) increased to $1.47 from $1.46 a year ago, beating consensus forecasts by 2.5%. Net income for the quarter was $479 million, down from $488 million in Q1 2024, as higher freight costs and the initial impact of new tariffs weighed on profitability. Operating margin held steady at 12.2% year-over-year, while comparable store sales remained flat, compared to a 3% increase in the same period last year. The company opened 19 new stores during the quarter, bringing its total to 2,205 locations, and continued to expand its packaway inventory strategy, with inventory levels up 8% overall and average store inventory up 4%. Ross Stores repurchased 2 million shares for $263 million and remains on track to complete $1.05 billion in buybacks for 2025. Despite the earnings beat, the stock fell sharply in aftermarket trading, reflecting investor caution over the company’s decision to withdraw its annual guidance due to macroeconomic headwinds and anticipated tariff impacts. Management now expects Q2 2025 EPS in the range of $1.40 to $1.55, including a $0.11–$0.16 per share cost impact from tariffs, and projects comparable store sales to be flat to up 3%. Ross Stores remains committed to its value-driven model and disciplined cost management, but is closely monitoring inflation, tariffs, and consumer spending trends. The company continues to invest in new store openings and operational efficiency to support long-term growth, even as it navigates a more challenging retail environment. Outlook: Q2 2025 EPS guidance: $1.40–$1.55, with comparable store sales expected to be flat to up 3%. Full-year guidance withdrawn due to macroeconomic and tariff uncertainties. Continued focus on inventory management, store expansion, and shareholder returns. About Inside Ticker: For more expert analysis and real-time updates on Ross Stores, Inc. (NASDAQ: ROST) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #RossStores #ROST #EarningsCall #Q12025 #Retail #OffPrice #RevenueGrowth #Tariffs #StockMarket #InsideTicker