Ross Stores (ROST) Stock Forecast & Price Target

Ross Stores has demonstrated a strong financial performance, with total sales increasing by 4.6% to $5.53 billion, aligning closely with both consensus expectations and the company’s own guidance range of 2%-6%. The favorable comp sales growth can be attributed to an uptick in customer traffic and a rise in average basket size, resulting in slight increases in average unit retail (AUR) and units per transaction (UPT). Looking ahead, Ross Stores has provided an optimistic sales growth forecast of 5%-7% year-over-year, indicating a robust outlook for continued sales expansion amidst a competitive retail environment.

Ross Stores is projecting third-quarter earnings per share (EPS) in the range of $1.31 to $1.37, reflecting a decrease from the previous year’s EPS of $1.48 and indicating a potential decline in profitability. Additionally, net interest income is expected to drop significantly to approximately $27 million, down from $43 million last year, suggesting challenges in financial performance. The presence of an $0.11 headwind from tariffs in the prior quarter further underscores the pressures that may affect the company’s bottom line going forward.