Ross Stores (ROST) Stock Forecast & Price Target

Ross Stores has demonstrated a strong sales performance, achieving a 4.6% increase in total sales to $5.53 billion, which is in line with market expectations and within the company’s guidance range of 2%-6%. The company has further projected robust sales growth of 6%-8% year-over-year, indicating optimism that exceeds previous consensus estimates. Positive trends across key merchandise categories and geographic regions, notably in cosmetics and leading performances in the Southeast and Midwest, enhance the company's outlook by showcasing broad-based sales momentum.

Ross Stores is projecting a decline in earnings per share (EPS) for the third quarter, estimating a range of $1.31-$1.37 compared to last year's EPS of $1.48, indicating potential challenges in profitability. Additionally, the company reported a significant decrease in net interest income, forecasted at approximately $27 million, down from $43 million the previous year, which reflects broader financial pressures. Operating margins are also experiencing downward pressure, with a forecasted decrease of around 150 basis points to 10.5%, suggesting potential inefficiencies and increased costs amidst stagnant SG&A expenses as a percentage of sales.