Ross Stores Gains Market Share as Consumers Shift from Traditional Retailers

Ross Stores, Inc. (Nasdaq: ROST) is experiencing significant growth, driven by a notable shift in consumer spending away from mainstream retailers and towards off-price options. The company’s strong fourth-quarter performance, reported on March 3, 2026, highlights this trend and positions Ross for continued expansion.

Fourth Quarter and Fiscal Year 2025 Results

Ross Stores reported total sales of $6.6 billion for the fourth quarter, a 12% increase compared to $5.9 billion in the same period last year. Comparable store sales rose 9%, building on a 3% increase from the previous year. Ross Stores Investor Relations

The operating margin for the quarter reached 12.3%, exceeding expectations of 11.5% to 11.8%. Earnings per share (EPS) were $2.00, surpassing the guidance range of $1.77 to $1.85. This represents a roughly 21% increase from $1.79 per share in the same quarter last year (excluding a $0.14 per share gain from the sale of a packaway facility in 2024). Yahoo Finance

For the full fiscal year 2025, Ross Stores achieved record sales of $22.8 billion, up 8% from $21.1 billion in 2024, with comparable store sales growing by 5%. Third News

Shift in Consumer Behavior

According to Ross Stores CEO Jim Conroy, a significant portion of the company’s recent gains in market share is attributable to consumers moving away from traditional department stores and mainstream retailers. Newsbreak He noted that another large off-price retailer too had a strong quarter, indicating the broader trend is benefiting the entire sector, rather than Ross Stores taking share from a direct competitor.

“I think the share shift is more from mainstream retail, department stores and other places like that, to off-price in general, and we would just like to get our fair share or, of course, more than our fair share from that shift,” Conroy stated. Newsbreak

Strategic Initiatives and Future Outlook

Ross Stores attributes its success to strategic in-store initiatives, enhanced customer engagement, and compelling merchandise offerings, particularly during the holiday season. New marketing campaigns launched around the back-to-school season also contributed to the positive results. Newsbreak

Looking ahead, Ross Stores anticipates comparable store sales to increase by 7% to 8% in the current quarter and 3% to 4% for the full year. Newsbreak

Expansion Plans

The company plans to continue its expansion, opening 110 new stores in 2026, representing a 5% growth in its store count. Ross Stores added 90 stores in 2025, closing nine, bringing the total to 2,267 stores at the end of the fourth quarter. Newsbreak Long-term, the company aims to increase its total store count to 3,600. Newsbreak

This expansion strategy mirrors that of competitor TJX Companies, which plans to add 146 net new stores by the end of fiscal year 2027. Newsbreak

Financial Highlights

• Fourth Quarter Total Sales: $6.6 billion (up 12%)
• Fourth Quarter Comparable Store Sales: Up 9%
• Fourth Quarter EPS: $2.00
• Full Year Sales: $22.8 billion (up 8%)
• Full Year Comparable Store Sales: Up 5%

Ross Stores also announced a new two-year repurchase authorization and a 10% increase in its quarterly cash dividend. Ross Stores Investor Relations