US' Ross Stores posts $5.53 bn sales in Q2 FY25, marks 4.6% YoY growth

The operating income for Q2 fell slightly to $638.3 million, while net earnings dipped 3.6 per cent to $508 million. Diluted earnings per share (EPS) declined to $1.56.

The company continued to expand its footprint, ending the quarter with 2,233 stores, up from 2,148 a year earlier, Ross Stores said in a press release.

For the first half (H1) of FY25, Ross Stores reported sales of $10.51 billion. Operating income in this half stood at $1.24 billion, while net earnings dipped to $987.2 million. Diluted EPS edged down to $3.03.

“We are encouraged by the sequential improvement in sales trends relative to the first quarter. During the second quarter, sales in May were strong and softened in June, before rebounding sharply in July,” said Jim Conroy, chief executive officer (CEO) at Ross Stores. “We were pleased to see the improved trend at the end of the quarter, particularly with the early sales performance related to the back-to-school selling season.”

“We ended the period with second quarter sales in line with our expectations, while earnings modestly exceeded the high end of our guidance range, mainly due to lower-than-expected tariff-related costs. Operating margin for the quarter decreased 95 basis points to 11.5 per cent compared to the prior year, primarily reflecting tariff-related costs,” added Conroy.

For the second half (H2) of FY25, Ross Stores has outlined its guidance, projecting comparable store sales growth of 2-3 per cent for both the third and fourth quarters. Earnings per share (EPS) are expected at $1.31-$1.37 in Q3, and $1.74-$1.81 in Q4. The company noted that announced tariffs will impact results by about $0.07-$0.08 per share in Q3 and $0.04-$0.06 per share in Q4.

Based on first-half performance and H2 forecasts, full-fiscal EPS ending January 31, 2026, is projected in the range of $6.08-$6.21. Trade policies are expected to cost approximately $0.22-$0.25 per share this fiscal, added the release.

“We are encouraged by the tone of the business in the second quarter and feel we are well positioned as we begin the third quarter. However, given the uncertainty associated with the macroeconomic environment, we will maintain a somewhat cautious approach to planning our business for the balance of the year,” added Conroy. “We expect the current uncertainty in the macro and geopolitical environments to persist through the remainder of the year. In addition, we anticipate pricing across retail will move higher as we progress through the year, which will lead consumers to seek more value this Fall season.”

ALCHEMPro News Desk (SG)