Ross Stores (ROST) Stock Forecast & Price Target

Ross Stores has demonstrated strong performance in Q2, with total sales increasing by 4.6% to $5.53 billion, aligning closely with the market consensus and falling within the company’s guidance of 2%-6%. The company experienced positive comparable store sales driven by increased customer traffic and higher average basket sizes, resulting in modest upticks in both Average Unit Retail (AUR) and Units Per Transaction (UPT). Additionally, Ross has set an optimistic sales guidance for the year, projecting a growth of 5%-7% year-over-year, which reflects confidence in maintaining its operational momentum amid a competitive retail landscape.

Ross Stores is experiencing a decline in earnings per share (EPS), with projected figures for the third quarter ranging from $1.31 to $1.37, down from $1.48 in the previous year. Additionally, the company's net interest income is expected to decrease significantly to approximately $27 million, compared to $43 million reported last year, indicating potential financial stress. These factors, combined with external pressures such as tariffs impacting earnings, contribute to a negative outlook on Ross Stores's stock performance.