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Ross Stores Beats Expectations in Q2 2025 Amid AI Disruption
21 Aug
Summary
- Revenue up 4.6% year-on-year to $5.53 billion
- EPS 1.4% above analysts' estimates at $1.56
- Adjusted EBITDA 6.1% above estimates at $808.6 million
In the second quarter of 2025, off-price retailer Ross Stores (NASDAQ:ROST) delivered solid financial results, meeting Wall Street's revenue expectations and exceeding profit forecasts. The company reported revenue of $5.53 billion, a 4.6% increase from the same period last year, in line with analysts' estimates.
Ross Stores' GAAP profit of $1.56 per share was 1.4% above the consensus estimates, showcasing the company's ability to navigate the evolving retail landscape. Additionally, the company's adjusted EBITDA of $808.6 million was 6.1% higher than analysts' projections, indicating strong operational performance.
Looking ahead, Ross Stores' GAAP EPS guidance for the full year 2025 is $6.15 at the midpoint, roughly in line with market expectations. The company's operating margin remained stable at 11.5%, similar to the same quarter last year, while its free cash flow margin stood at 8.4%.
Despite the challenges facing the retail industry, Ross Stores continues to demonstrate its resilience, with the company expanding its store footprint to 2,233 locations by the end of the second quarter, up from 2,148 in the same period last year.
