How Does Ross Stores Make its Money?
Ross Stores is the second-largest off-price retailer in the United States, operating approximately 1,800 Ross Dress for Less and 350 dd’s DISCOUNTS stores across 43 states. Off-price retailers purchase brand-name and designer merchandise at deep discounts from manufacturers and department stores, then sell it to consumers at 20-60% below regular retail prices. Ross’s treasure-hunt shopping experience — where inventory constantly changes — drives frequent store visits and impulse purchases. The off-price model has proven extremely resilient across economic cycles: in recessions, consumers trade down to off-price, and in strong economies, they continue shopping for deals. Ross targets middle-income consumers, while dd’s DISCOUNTS serves more moderate-income shoppers.
Ross Stores (ROST) Business Model
Ross Stores operates in the retail sector. Below is a summary of Ross Stores’ revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Ross Stores’ 2024 fiscal year filings with the SEC.
Ross Stores Competitors
Ross Stores’s key competitors and comparable public companies in the retail sector include TJX Companies, Costco, Walmart, and Dollar General. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Ross Stores stacks up by comparing their revenue breakdown, margins, and growth metrics.
Ross Stores Competitors
Ross Stores’s key competitors and comparable public companies in the retail sector include TJX Companies, Costco, Walmart, and Dollar General. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Ross Stores stacks up by comparing their revenue breakdown, margins, and growth metrics.
Ross Stores Competitors
Ross Stores’s key competitors and comparable public companies in the retail sector include TJX Companies, Costco, Walmart, and Dollar General. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Ross Stores stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Ross Dress for Less | $18,500 | $17,500 | +5.7% |
| dd’s DISCOUNTS | $2,400 | $2,100 | +14.3% |
| Total Revenue | $21,200 | $20,400 | +3.9% |
Ross Dress for Less — 87% of Revenue
dd’s DISCOUNTS — 11% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $21,200 | $20,400 |
| Cost of Revenue | $15,200 | $14,700 |
| Gross Profit | $6,000 | $5,700 |
| Operating Expenses | $3,200 | $3,100 |
| Operating Income | $2,800 | $2,600 |
| Net Income | $2,100 | $1,900 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 28.3%
- Operating Margin: 13.2%
- Revenue Growth: 3.9%
Is Ross Stores Profitable?
Yes, Ross Stores is profitable. The company reported net income of $2,100 on total revenue of $21,200. With an operating margin of 13.2%, Ross Stores demonstrates solid profitability for the retail sector. The gross margin of 28.3% reflects Ross Stores’ pricing power and cost structure.
What to Watch
- Comparable store sales growth as the value proposition attracts trade-down consumers
- New store opening pace toward a long-term target of 2,900+ Ross and 600+ dd’s stores
- Merchandise margin expansion through improved buying and supply chain efficiencies
- dd’s DISCOUNTS growth and profitability as it targets underserved lower-income markets
Ross Stores (ROST) Financial Summary
Ross Stores (ROST) is a retail company that generated $21,200 in total revenue in fiscal year 2024. Revenue grew 3.9% year-over-year. The company earned $2,100 in net income, making it profitable. For a deeper look at Ross Stores’ revenue breakdown, business segments, and financial performance, review the detailed analysis above.