Ross Stores (ROST) Stock Forecast & Price Target

Ross Stores has demonstrated a solid performance with comparable store sales growth of approximately 3.0%, surpassing analyst expectations. The company has also achieved SG&A leverage for four consecutive quarters, primarily driven by a successful packaway facility sale, indicating operational efficiencies. Furthermore, while total sales for FY25 are forecasted to grow between 1% and 5%, management's proactive approach to inventory management positions the retailer favorably in an evolving market landscape.

Ross Stores has provided a FY25E EPS guidance of $5.95-6.55, which is below the Street expectation of $6.67, marking the widest delta since FY20. The company has also forecasted a sales decline of 1% to an increase of 3% year-over-year, which is significantly below the consensus forecast of $5.128 billion, projecting a growth rate of 5.6%. Additionally, the company reported a 1.8% year-over-year sales decline in the fourth quarter, missing market expectations, coupled with indications of weakening topline trends driven by adverse weather and macroeconomic factors affecting consumer traffic.