Dublin, Calif. – Ross Stores Inc. wrapped up its fourth quarter with results at the high end of its guidance, yet signs of a challenging retail environment emerged as sales trends softened in late January and February.
Newly appointed CEO Jim Conroy, who took the helm on Feb. 2, pointed to adverse weather conditions and broader macroeconomic factors as key contributors to the slowdown in store traffic.
Cautious Outlook for 2025
“Given the lack of visibility we have on these external factors, we believe it is prudent to take a cautious approach in forecasting our business, especially as we start the year,” Conroy stated.
As the retail landscape adapts to the new Trump administration’s tariff policies, Ross plans to employ a familiar strategy, similar to its response in 2018. According to Group President and COO Michael Hartshorn, this includes negotiating costs, adjusting the business mix, and, in some cases, raising prices, depending on market reactions.
Financial Performance & Sales Trends
For fiscal 2025, Ross anticipates total sales growth between 1% and 5%, with same-store sales declining by 1%, following a 3% gain in 2024. Conroy acknowledged that while operational improvements remain a priority, the current softness in sales is largely attributed to macroeconomic pressures impacting consumer confidence and discretionary spending.
Q4 Results at a Glance:
- Total sales: $5.9 billion (down 1.8%)
- Comparable store sales: +3% (on top of a 7% increase in Q4 2024)
- Best-performing categories: Cosmetics and children’s apparel
- Earnings per share (EPS): $1.79 for the 13 weeks ended Feb. 1, compared to $1.82 per share for the 14-week period ended Feb. 3, 2024
Expansion Plans for 2025
Ross Stores ended the quarter operating 1,831 Ross locations and 355 dd’s Discount stores. Despite the uncertain retail climate, the company remains committed to expansion, with plans to open approximately 80 new Ross stores and 10 dd’s Discount locations this year. Additionally, 10 to 15 older stores will be closed or relocated.
As the retail giant navigates evolving economic conditions, its strategic approach to pricing, cost negotiations, and store expansions will play a crucial role in maintaining stability and growth in the coming year.
