ROSS Stores (ROST) FY2025 results: revenue $22.8 billion, up 7.7% on the year

Ross Stores runs two brands of off-price retail apparel and home fashion stores. Ross Dress for Less is the largest off-price apparel and home fashion chain in the United States, with 1,904 locations in 44 states, the District of Columbia, Guam and Puerto Rico at 31 January 2026, selling first-quality, in-season, brand name and designer apparel, accessories, footwear and home fashions at 20% to 60% off department and specialty store regular prices. dd's DISCOUNTS adds 363 stores in 22 states, more moderately priced, at 20% to 70% off moderate department and discount store regular prices. Ross targets middle income households, while a dd's DISCOUNTS store typically sits in an established shopping centre in a densely populated urban or suburban neighbourhood and serves lower to more moderate incomes.

How the buying works

New merchandise arrives three to six times a week at both chains, and buyers review their assortments weekly so they can respond to selling trends and buying opportunities. The goods are bought mostly direct from manufacturers, through overruns and cancelled orders during and at the end of a season, which the company calls close-out purchases, and through production direct from brands and factories, called upfront purchases. Buying later in the cycle than department, specialty and discount stores lets the company take advantage of imbalances between retailers' demand for products and manufacturers' supply of them. Vendors are generally not asked for promotional allowances, co-op advertising allowances, return privileges, drop shipments or delayed deliveries, which the filing describes as flexible requirements that help the buyers win bigger discounts.

Packaway and price tags

Merchandise can ship to stores in season or go into warehouses as packaway, held until a later date, sometimes the start of the same selling season the following year, though typically for less than six months. Price tags show the selling price beside the comparable value at department and specialty stores for Ross, or at moderate department and discount stores for dd's DISCOUNTS. The company buys at lower prices and marks up less than a department or specialty store, and buyers review their departments weekly for markdowns based on rate of sale, and again at the end of fashion seasons.

The store estate

There were 2,267 stores at 31 January 2026, predominantly in community and neighbourhood shopping centres in heavily populated urban and suburban areas. Where market size and real estate permit, Ross stores are clustered to raise market penetration and gain scale in marketing, distribution and field management costs. Site decisions weigh availability, demographics, competition and population density, with a preference for buildings needing minimal alteration so a store can open quickly and cheaply. The selling area follows a single floor prototype with a racetrack aisle layout, department signs below the ceiling, category and sizing markers, and registers mostly at the exits.

Offices and distribution

The primary buying offices are in New York City and Los Angeles, with a smaller one in Boston, and the two brands run separate buying organisations under their own chief merchandising officers, with over 800 merchants between them at the end of fiscal 2025. Distribution processing facilities receive and process all merchandise and ship it to regional cross-dock facilities near the stores, with separate warehouses for packaway storage. Contract carriers deliver to stores three to six times a week depending on location. Marketing mixes traditional and streaming television, digital channels and new store grand openings, with a continuing shift towards social media, digital video and digital audio.

People and competition

There were approximately 111,000 associates at 31 January 2026 across stores, distribution centres and buying and corporate offices, over 85% of them in the retail stores. Temporary associates are hired especially during peak seasons, and no associates are covered by a collective bargaining agreement. The company states that the principal competitive factors in the industry are significant discounts on brand name merchandise, a well-balanced assortment for its target customers, and store environments that are convenient and easy to shop. It describes the apparel and home fashion markets as highly fragmented and competitive, with competition from online retailers, department stores, specialty stores, discount stores, warehouse stores, other off-price retailers and manufacturer-owned outlet stores. Sales are generally higher in the second half of the year, which takes in the back-to-school and holiday seasons.

From Ross Stores' annual report on Form 10-K for the year ended 31 January 2026. The filing

Written from the 10-K filed 31 March 2026: read the full 10-K.