Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Ross Stores delivered solid FY2025 results with revenue growing 7.7% to $22.75B and operating cash flow surging 28.4% to $3.03B, though operating margin compressed slightly to 11.9% as SG&A costs rose faster than revenue.
Revenue
$22.75B
+7.67% YoY
EPS (Diluted)
$6.61
+4.59% YoY
Operating Income
$2.71B
+4.71% YoY
Source: SEC XBRL
Ross Stores (ROST) reported FY2025 revenue of $22.75B, up 7.7% year over year. Operating margin was 11.9%, down 0.3 points from 12.2% a year earlier. Operating cash flow was $3.03B, up 28.4% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.02 | 1.76 | Beat +14.5% |
| Mar 2026 | 2.00 | 1.94 | Beat +3.0% |
| Dec 2025 | 1.58 | 1.44 | Beat +10.1% |
| Sep 2025 | 1.56 | 1.57 | Miss -0.4% |
Compiled by AI from this SEC filing
Total revenues increased 7.7% year-over-year to $22.75B in FY2025, up from $21.13B in FY2024, reflecting continued consumer demand for off-price retail and likely contributions from new store openings alongside comparable store sales gains.
Source: 10-K Income Statement
SG&A expenses rose 9.5% to $3.60B, outpacing revenue growth of 7.7%, which contributed to a modest operating margin compression of approximately 34 basis points to 11.9% from 12.2% in the prior year.
Source: 10-K Income Statement
Operating cash flow surged 28.4% to $3.03B from $2.36B in the prior year, demonstrating robust cash conversion and working capital efficiency, providing ample liquidity to fund capital expenditures and shareholder returns.
Source: 10-K Cash Flow Statement
Long-term debt declined 31.5% to $1.52B from $2.21B, while stockholders' equity grew 12.3% to $6.19B, reflecting a materially stronger balance sheet and reduced financial leverage heading into FY2026.
Source: 10-K Balance Sheet
Ross Stores repurchased approximately $1.05B in shares during FY2025, nearly identical to the $1.05B repurchased in FY2024, underscoring management's commitment to returning capital to shareholders on a disciplined and consistent basis.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
SG&A expenses grew 9.5% in FY2025 versus revenue growth of 7.7%, creating margin headwinds. If wage inflation, store operating costs, or distribution expenses continue to rise faster than top-line growth, operating margins could face further compression beyond the 34 bps decline already observed.
Source: 10-K Income Statement
Cost of revenue grew 7.8% to $16.45B, slightly outpacing revenue growth, indicating modest pressure on merchandise margins. As an off-price retailer, Ross depends on opportunistic buying; any disruption to the availability of closeout or excess inventory from vendors could impair its value proposition and gross margins.
Source: 10-K Income Statement
Cash and equivalents fell 2.9% to $4.59B despite strong operating cash flow, as financing outflows of $2.34B (including $1.05B in buybacks and debt repayment) and investing outflows of $819M consumed liquidity. Continued aggressive capital deployment could reduce financial flexibility in a downturn.
Source: 10-K Balance Sheet & Cash Flow Statement
While Ross benefits from trade-down behavior during economic stress, a prolonged consumer spending slowdown or shift in discretionary spending patterns could reduce store traffic and comparable sales growth. The company's performance is closely tied to the health of the low-to-middle income consumer segment.
Source: 10-K Income Statement
Ross's off-price model requires efficient inventory sourcing and rapid merchandise turnover. Disruptions in global supply chains, port congestion, or changes in vendor excess inventory availability could limit the company's ability to offer compelling value to customers and sustain comparable sales momentum.
Source: 10-K Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 22.75 $B | 21.13 $B | +7.67% |
Cost of Revenue $B | 16.45 $B | 15.26 $B | +7.78% |
Operating Income $B | 2.71 $B | 2.59 $B | +4.71% |
Net Income $B | 2.15 $B | 2.09 $B | +2.60% |
EPS (Basic) $ | 6.66 $ | 6.36 $ | +4.72% |
EPS (Diluted) $ | 6.61 $ | 6.32 $ | +4.59% |
SG&A Expense $B | 3.60 $B | 3.28 $B | +9.53% |
Answers draw on this SEC filing and the data on this page
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