Ross Stores meets Street with Q2 net income, sales
Ross Stores Inc. delivered expected profit and revenue results during the second quarter of fiscal 2025.
The parent company of off-price retailers Ross Dress for Less and DD’s Discounts reported net earnings of $508 million, down roughly 4% from $527.1 million in the first quarter of fiscal 2024. Earnings per share totaled $1.57, down from $1.60 year over year.
Included in Ross Stores’ second-quarter earnings is an approximate $0.11 per share negative impact from tariff-related costs. Total sales for the 2025 second quarter increased 5% to $5.5 billion, up from $5.3 billion for the same period in 2024, with comparable store sales up 2% from the prior year.
All of these results were in line with Wall Street expectations. The company remains on track to buy back a total of $1.05 billion in common stock during fiscal 2025 and complete the program as planned.
“We are encouraged by the sequential improvement in sales trends relative to the first quarter,” said Jim Conroy, CEO of Ross Stores. “During the second quarter, sales in May were strong and softened in June, before rebounding sharply in July. Earnings modestly exceeded the high end of our guidance range, mainly due to lower-than-expected tariff-related costs.”
[READ MORE: Ross details 2025 store expansion]
Fiscal 2025 guidance
For both the third and fourth quarters of fiscal 2025, Ross Stores is planning comparable store sales growth of 2% to 3%. If the second half of 2025 performs in line with these sales projections, earnings per share for the third quarter are projected to be $1.31 to $1.37 compared to $1.48 in the third quarter of the previous year, and $1.74 to $1.81 for the fourth quarter compared to $1.79 in 2024.
These guidance ranges include an approximate $0.07 to $0.08 and $0.04 to $0.06 per share cost impact from the announced tariffs for the third and fourth quarters, respectively.
Earnings per share for the 52 weeks ending Jan. 31, 2026 are now planned to be in the range of $6.08 to $6.21 compared to $6.32 the previous year. For fiscal 2025, Ross Stores anticipates approximately $0.22 to $0.25 per share impact from announced trade policies.
"We expect the current uncertainty in the macro and geopolitical environments to persist through the remainder of the year," said Conroy. “In addition, we anticipate pricing across retail will move higher as we progress through the year, which will lead consumers to seek more value this fall season. As a result, we remain intensely focused on delivering high-quality, branded merchandise at compelling price points to reinforce our value proposition and strengthen our competitive position to capture market share."
Ross Stores operates 1,873 locations in 44 states, the District of Columbia, Guam, and Puerto Rico. The company also operates 360 DD’s Discounts stores in 22 states.
