Ross Stores issues cautious outlook for 2025, citing economic headwinds
Ross Dress for Less Store Credits: Ross Stores, Inc. Discount retailer Ross Stores issued a cautious outlook for the year, forecasting annual sales and profit below analysts’ expectations. The company joins larger peers in signalling a slowdown in consumer demand as inflationary pressures weigh on spending. Additional risks loom with potential tariff impositions and immigration crackdowns. For fiscal 2025, Ross expects comparable sales to range from a 1 percent decline to a 2 percent increase, with earnings per share projected between 5.95 dollars and 6.55 dollars—both trailing Wall Street estimates. The first quarter is poised for a sharper downturn, with comparable sales expected to fall 3 percent, a stark contrast to the 3 percent growth in the same period last year. The company also anticipates lingering supply chain disruptions tied to initial tariff announcements. “While we were pleased with our 2024 results, including a strong holiday season, sales trends softened in late January and into February,” said CEO Jim Conroy. “We believe a mix of unseasonable weather and heightened macroeconomic and geopolitical volatility has negatively affected customer traffic.” In the fourth quarter, earnings per share declined to 1.79 dollars, with net income falling to 587 million dollars. Sales totalled 5.9 billion dollars, though comparable store sales still posted a 3 percent increase. For the full fiscal year, earnings per share rose to 6.32 dollars, with net income climbing to 2.1 billion dollars on total sales of 21.1 billion dollars. Comparable store sales grew 3 percent, though this marked a slowdown from the 5 percent gain in fiscal 2023. Despite the uncertain outlook, Ross remains committed to shareholder returns. The board authorised a 10 percent increase in its quarterly cash dividend to 0.405 dollars per share. “As we navigate a challenging external environment, we will continue seeking opportunities to drive growth while carefully managing the factors within our control,” Conroy added.
Discount retailer Ross Stores issued a cautious outlook for the year, forecasting annual sales and profit below analysts’ expectations. The company joins larger peers in signalling a slowdown in consumer demand as inflationary pressures weigh on spending. Additional risks loom with potential tariff impositions and immigration crackdowns.
For fiscal 2025, Ross expects comparable sales to range from a 1 percent decline to a 2 percent increase, with earnings per share projected between 5.95 dollars and 6.55 dollars—both trailing Wall Street estimates. The first quarter is poised for a sharper downturn, with comparable sales expected to fall 3 percent, a stark contrast to the 3 percent growth in the same period last year. The company also anticipates lingering supply chain disruptions tied to initial tariff announcements.
“While we were pleased with our 2024 results, including a strong holiday season, sales trends softened in late January and into February,” said CEO Jim Conroy. “We believe a mix of unseasonable weather and heightened macroeconomic and geopolitical volatility has negatively affected customer traffic.”
In the fourth quarter, earnings per share declined to 1.79 dollars, with net income falling to 587 million dollars. Sales totalled 5.9 billion dollars, though comparable store sales still posted a 3 percent increase.
For the full fiscal year, earnings per share rose to 6.32 dollars, with net income climbing to 2.1 billion dollars on total sales of 21.1 billion dollars. Comparable store sales grew 3 percent, though this marked a slowdown from the 5 percent gain in fiscal 2023.
Despite the uncertain outlook, Ross remains committed to shareholder returns. The board authorised a 10 percent increase in its quarterly cash dividend to 0.405 dollars per share.
“As we navigate a challenging external environment, we will continue seeking opportunities to drive growth while carefully managing the factors within our control,” Conroy added.
