Ross favored by investors
- Investors see Ross Stores as a strong performer when consumers are financially pinched. - An analysis called Ross “the retail king of a pinched economy,” and some institutions increased positions. - Investor enthusiasm supports the idea that off-price retail benefits from stretched consumers, despite operational nuance. (investing.com)
Investors have been piling into Ross Stores as bets grow that bargain chains hold up when shoppers pull back. (rossstores.com) Ross, which runs Ross Dress for Less and dd’s DISCOUNTS, said fiscal 2025 revenue reached a record $22.8 billion and full-year earnings per share rose to $6.61. The company said it ended the year with 1,904 Ross stores and 363 dd’s DISCOUNTS locations. (rossstores.com) In the fourth quarter, sales rose 12%, comparable-store sales increased 9%, and earnings per share came in at $2.00, above the company’s guidance range of $1.77 to $1.85. Chief executive Jim Conroy said in March that business momentum “accelerated further” in the quarter. (rossstores.com) That performance has fed a familiar retail trade: off-price chains often gain traffic when inflation and tighter budgets push shoppers toward branded goods sold below department-store prices. Ross says its model depends on buying excess merchandise and passing through value in apparel and home categories. (rossstores.com) The company has also been returning more cash to shareholders. Ross said in March that it raised its quarterly cash dividend by 10% and increased its two-year stock repurchase authorization by $2.1 billion, bringing the total authorization to $3.1 billion through fiscal 2027. (marketbeat.com) Institutional ownership data point the same way. MarketBeat said 86.86% of Ross shares were held by institutions, with $9.02 billion of inflows over the last 12 months versus $7.79 billion of outflows. (marketbeat.com) Some funds have recently added to positions in new filings. MarketBeat reported on April 23 that Universal Beteiligungs und Servicegesellschaft mbH increased its fourth-quarter holding by 4.9% to 284,605 shares, worth about $51.3 million at the time of filing. (marketbeat.com) Ross is not pitching the story as recession-proof. In its investor presentation, the company said risks include inflation, tariff increases or threats of increases, supply-chain disruption, and weaker consumer confidence, all of which can pressure sales and margins even at a value retailer. (rossstores.com) The bullish case is narrower than “consumers are struggling, so Ross wins.” Investors are backing a chain that posted stronger-than-expected results, expanded shareholder payouts, and still sits in a part of retail that tends to draw more attention when wallets get tight. (investing.com)
