Earnings Summary: Ross Stores Q2 FY25 earnings drop despite higher revenues

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Ross Stores Inc. (NASDAQ: ROST), which operates a chain of off-price apparel and home accessories stores, has reported mixed results for the second quarter of fiscal 2025.

  • Net income declined to $508 million or $1.56 per share in Q2 from $527 million or $1.59 per share in the year-ago quarter
  • Total sales increased 5% in the second quarter to $5.5 billion from $5.3 billion in the corresponding quarter of FY24
  • In Q2, operating margin decreased 95 basis points to 11.5% compared to the prior-year period, primarily reflecting tariff-related costs
  • During the quarter, the company repurchased a total of 1.9 million shares for an aggregate price of $262 million
  • For both the third and fourth quarters, Ross is targeting comparable store sales growth of up 2% to 3%.
  • Earnings per share for the third quarter are projected to be between $1.31 and $1.37, versus $1.48 last year
  • For the fourth quarter, the management projects earnings per share in the range of $1.74 to $1.81
  • For fiscal 2025, the company forecasts earnings per share in the range of $6.08 to $6.21, versus $6.32 last year