# Ross Stores (ROST) Q2 2025 Financial Results Summary
**Release Date:** August 21, 2025
Ross Stores, Inc. has reported its financial results for the second quarter of fiscal 2025, which ended on August 2, 2025. Below is a summary of the key metrics from the report:
### Financial Highlights
– **Earnings Per Share (EPS):**
– Q2 2025: **$1.56** (compared to $1.59 in Q2 2024, a decrease of **1.9%**)
– Six months ended August 2, 2025: **$3.03** (compared to $3.05 in the same period last year, a decrease of **0.7%**)
– **Net Income:**
– Q2 2025: **$508 million** (decreased from $527 million in Q2 2024, a decline of **3.6%**)
– Six months ended August 2, 2025: **$987 million** (compared to $1 billion in the same period last year, a decline of **2.8%**)
– **Total Sales:**
– Q2 2025: **$5.5 billion** (an increase from $5.3 billion in Q2 2024, a growth of **3.8%**)
– Six months ended August 2, 2025: **$10.5 billion** (up from $10.1 billion in the prior year, a growth of **3.9%**)
– **Comparable Store Sales:**
– Q2 2025: Increased by **2%** compared to the previous year.
– Six months ended August 2, 2025: Increased by **1%** versus the same period in 2024.
– **Operating Margin:**
– Q2 2025: Decreased to **11.5%**, down by **95 basis points** from the prior year.
### Shareholder Payouts
– During Q2 2025, the company repurchased **1.9 million shares** of common stock for an aggregate price of **$262 million** under a two-year $2.1 billion authorization.
– The repurchase program is expected to total **$1.05 billion** for fiscal 2025.
– **Dividends:**
– The company paid **$265.6 million** in dividends during Q2 2025, an increase from **$245.8 million** in Q2 2024, reflecting a rise of approximately **8.1%**.
### Chief Executive Officer Comments
– **Jim Conroy** noted improved sales trends compared to Q1, citing strong sales in May, a softening in June, and a rebound in July.
– Sales performance aligns with expectations, and earnings were above guidance due to lower-than-expected tariff-related costs, which negatively affected EPS by approximately **$0.11** per share.
### Fiscal 2025 Guidance
– For the second half of 2025, Ross Stores anticipates comparable store sales growth of **2% to 3%**.
– Projected EPS ranges:
– Q3 2025: **$1.31 to $1.37** (compared to $1.48 last year, indicating a decline of **7.8% to 11.5%**)
– Q4 2025: **$1.74 to $1.81** (compared to $1.79 last year, a potential decrease of **0.6% to 3.9%**)
– Annual EPS for the year ending January 31, 2026, is anticipated to be in the range of **$6.08 to $6.21**, compared to **$6.32** last year, indicating a decrease of **1.8% to 3.8%**.
### Macro Environment Outlook
– The company remains cautious due to uncertainty in the macroeconomic environment, including potential impacts from tariffs and inflation.
– There is a focus on delivering high-quality merchandise at competitive prices to maintain its value proposition and capture market share.
### Conference Call
– A conference call is scheduled for **August 21, 2025, at 4:15 p.m. EDT** to further discuss the results and management’s outlook.
This summary provides a detailed overview of Ross Stores’ Q2 2025 financial performance and expectations going forward.
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 | |
| Sales | $5,529,133 | $5,287,105 | $10,514,034 | $10,145,968 |
| Costs and Expenses | ||||
| Cost of goods sold | 4,002,100 | 3,791,181 | 7,583,017 | 7,282,083 |
| Selling, general and administrative | 888,711 | 836,357 | 1,685,073 | 1,612,502 |
| Operating income | 638,274 | 659,233 | 1,244,944 | 1,250,383 |
| Interest income, net | -32,346 | -43,350 | -66,755 | -89,300 |
| Earnings before taxes | 670,620 | 702,583 | 1,311,199 | 1,339,083 |
| Provision for taxes on earnings | 162,625 | 175,435 | 324,255 | 324,508 |
| Net earnings | $507,995 | $527,148 | $987,244 | $1,015,575 |
| Earnings per share | ||||
| Basic | $1.57 | $1.60 | $3.05 | $3.07 |
| Diluted | $1.56 | $1.59 | $3.03 | $3.05 |
| Weighted-average shares outstanding | ||||
| Basic | 323,000 | 329,392 | 323,938 | 330,325 |
| Diluted | 324,796 | 331,511 | 325,909 | 332,620 |
| Store count at end of period | 2,233 | 2,148 | 2,233 | 2,148 |
| Assets | August 2, 2025 | August 3, 2024 |
|---|---|---|
| Cash and cash equivalents | $3,847,016 | $4,668,137 |
| Accounts receivable | 210,520 | 181,918 |
| Merchandise inventory | 2,608,485 | 2,490,558 |
| Prepaid expenses and other | 259,815 | 254,370 |
| Total current assets | 6,925,836 | 7,594,983 |
| Property and equipment, net | 3,906,340 | 3,583,535 |
| Operating lease assets | 3,374,582 | 3,234,180 |
| Other long-term assets | 288,761 | 265,323 |
| Total assets | $14,495,519 | $14,678,021 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities | ||
| Accounts payable | $2,205,613 | $2,217,227 |
| Accrued expenses and other | 655,218 | 639,703 |
| Current operating lease liabilities | 716,162 | 691,036 |
| Accrued payroll and benefits | 315,893 | 353,980 |
| Income taxes payable | — | 23,266 |
| Current portion of long-term debt | 499,122 | 949,028 |
| Total current liabilities | 4,392,008 | 4,874,240 |
| Long-term debt | 1,017,218 | 1,513,826 |
| Non-current operating lease liabilities | 2,835,481 | 2,710,239 |
| Other long-term liabilities | 279,258 | 254,487 |
| Deferred income taxes | 238,985 | 194,697 |
| Commitments and contingencies | ||
| Stockholders’ Equity | 5,732,569 | 5,130,532 |
| Total liabilities and stockholders’ equity | $14,495,519 | $14,678,021 |
