Ross Stores, Inc. (NASDAQ:ROST) Quarterly Earnings Preview

• Ross Stores, Inc. (NASDAQ:ROST) anticipates a 4.7% increase in second-quarter sales, projecting revenues of approximately $5.53 billion.
• The company expects a decrease in EPS, with guidance between $1.40 and $1.55, down from $1.59 last year due to tariffs, inflation, and consumer pressures.
• Ross Stores has a history of earnings surprises, with an average surprise of 6.1% over the last four quarters.

Ross Stores, Inc. (NASDAQ:ROST), a leading figure in the off-price retail sector, is gearing up to release its quarterly earnings on August 21, 2025. Wall Street is setting its sights on an earnings per share (EPS) of $1.52 and revenue of approximately $5.54 billion. This report will delve into the company's financial health and its standing in the market.

The company is on track to report a 4.7% increase in second-quarter sales, with revenues expected to hit around $5.53 billion. This growth is attributed to Ross Stores' commitment to offering value and expanding its store footprint. However, the EPS is projected to see a downturn, with forecasts ranging from $1.40 to $1.55, a dip from the previous year's $1.59. Factors such as tariffs, inflation, and consumer pressures are squeezing margins, leading to this anticipated decline.

Despite these hurdles, Ross Stores has consistently outperformed expectations, boasting an average earnings surprise of 6.1% over the past four quarters, including a 2.8% surprise in the most recent quarter. The Zacks Consensus Estimate for earnings stands at $1.52 per share, reflecting a 4.4% year-over-year decrease from $1.59. Over the past 30 days, this consensus estimate has been adjusted downwards by 1.3%, signaling a cautious stance from analysts.

Examining Ross Stores' financial metrics sheds light on its market valuation. The company's price-to-earnings (P/E) ratio is pegged at approximately 23.08, illustrating how the market values its earnings. The price-to-sales (P/S) ratio is about 2.28, and the enterprise value to sales (EV/S) ratio stands at roughly 2.33. These figures provide insight into how the market perceives the company's revenue and overall value.

The debt-to-equity ratio of Ross Stores is approximately 0.90, indicating a balanced approach to leveraging assets. Furthermore, the current ratio is around 1.55, showcasing the company's capability to meet short-term obligations with its short-term assets. These financial metrics underscore Ross Stores' stability and growth potential amidst prevailing challenges.