MW Ross Stores flash another sign that consumers are seeking discounts this fall

By Claudia Assis

Ross says sales softened in June, but rebounded 'sharply' in July

A pedestrian carries a Ross Dress For Less shopping bag in San Francisco. Ross said its May sales were strong, softened in June, but rebounded "sharply" in July.

Pinched U.S. consumers sought Ross Stores Inc.'s off-price offerings, leading the discount retailer to project sales growth for the rest of the year despite ongoing economic uncertainty.

Retail prices are poised to increase and U.S. consumers will be seeking "value" in the fall season, Ross $(ROST)$ Chief Executive Jim Conroy said Thursday as the company reported quarterly earnings.

When they do, Ross, with its loyal customer base shopping at Ross Dress for Less and DD's Discounts stores, will be ready, Conroy said.

Ross remains "intensely focused on delivering high-quality, branded merchandise at compelling price points to reinforce our value proposition and strengthen our competitive position to capture market share," the CEO said.

Earlier this week, TJX Cos. $(TJX)$, the parent company of TJ Maxx, Marshalls and other discount retailers, reported higher sales at all of its store brands and raised its guidance for the year, saying sales will likely offset tariff pressure as it saw "strong demand" at its U.S. and international businesses.

Ross Stores called for same-store comparable sales growth of 2% to 3% in both its third and fourth quarters.

That would mean per-share earnings of $1.31 to $1.37 in the third quarter, lower than consensus estimates of $1.48 a share, and of $1.74 to $1.81 for the fourth quarter, ahead of Wall Street expectations of $1.70 a share.

The guidance includes tariff impacts, Ross said.

The company is "encouraged" by better sales in the second quarter than in the first quarter, Conroy said. May sales were strong and softened in June, but rebounded sharply in July, he said.

"We were pleased to see the improved trend at the end of the quarter, particularly with the early sales performance related to the back-to-school selling season," Conroy said.

Ross remains "somewhat cautious" about the rest of the year, however, due to macroeconomic uncertainty.

The company reported second-quarter earnings of $1.56 a share on sales of $5.5 billion, including a hit of about 11 cents a share from tariff-related costs. Analysts polled by FactSet expected earnings of $1.53 a share in the quarter.

The $5.5 billion in quarterly sales, in line with expectations, was 5% higher than the $5.3 billion in the second quarter of 2024. Same-store sales rose 2% year over year, Ross said.

Shares of Ross rose more than 2% in the extended session Thursday, after ending the regular trading day down 0.5%. The stock is down about 4% this year, contrasting with gains of around 8% for the S&P 500 index SPX.

-Claudia Assis

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August 21, 2025 17:06 ET (21:06 GMT)

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