Will Ross Stores' Store-Expansion Strategy Help Boost Profitability?

Ross Stores, Inc. ROST continues to strengthen its presence by introducing new stores and enhancing its operational capabilities. The company is expanding across the existing and new markets while investing in infrastructure to drive long-term growth. In the latest development, ROST has concluded its store-expansion plans for fiscal 2025 by opening 40 stores recently. The company has inaugurated 36 Ross Dress for Less (Ross) and four dd's DISCOUNTS outlets in 17 various states this September and October. Including the latest openings, ROST has added 90 new stores in the current fiscal year. Together, Ross Dress for Less and dd's DISCOUNTS currently operate a total of 2,273 locations in 44 states, the District of Columbia, Guam and Puerto Rico, and 364 dd's DISCOUNTS stores across 22 states.At Ross Dress for Less, the company expanded its footprint in the Midwest and the Northeast, with store openings in Michigan, New Jersey and New York, alongside enhancing its presence in the sunbelt states. At dd's, ROST bolstered its footprint across the core markets of California and Texas. The company continues to benefit from positive customer response for its merchandise across both banners, recording broad-based strength across nearly all merchandise categories and most regions. Such openings underscore ROST’s commitment to driving growth via store expansion while enhancing overall sales and profitability. These have also been boosting comparable store sales (comps). In second-quarter fiscal 2025, the company’s top line improved 5% year over year, supported by a 2% gain in comps. For the third and fourth quarters of fiscal 2025, it anticipates comps growth of 2-3% each. Our model projects comparable sales growth of 2.9% in the third quarter and 2.0% in the fourth quarter of fiscal 2025.Ross Stores had earlier raised its store-expansion targets for the long term. With such robust store openings, management is confident of accomplishing at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS stores over time. Combined with its resilient off-price retail model, such efforts are expected to drive incremental sales and enhance overall profitability.Image Source: Zacks Investment ResearchShares of this Zacks Rank #3 (Hold) company have gained 21.3% against the industry’s 0.3% drop in the past three months.Eye These Solid Picks in RetailUrban Outfitters URBN, a lifestyle specialty retailer that offers fashion apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales indicates growth of 5.5% from the year-ago figure. URBN delivered an average earnings surprise of 24.8% in the last four quarters.Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, sporting a Zacks Rank of 1 at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.Allbirds, Inc. BIRD, a lifestyle brand, currently has a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ross Stores, Inc. (ROST): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Genesco Inc. (GCO): Free Stock Analysis Report Allbirds, Inc. (BIRD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks