On this page of StockholderLetter.com we present the latest annual shareholder letter from ROSS STORES, INC. — ticker symbol ROST. Reading current and past ROST letters to shareholders can bring important insights into the investment thesis.

 •  4/6/2026 Letter Continued (Full PDF)
 •  4/3/2023 ROST Stockholder Letter
 •  4/8/2024 ROST Stockholder Letter
 •  4/7/2025 ROST Stockholder Letter
 •  More "Apparel Stores" Category Stockholder Letters
 •  ROST Benford's Law Stock Score = 73

ROST Shareholder/Stockholder Letter Transcript:

SUSTAINABLE CHOICE. REDUCE, REUSE
AND RECYCLE. To minimize our environmental
impact, the Ross Stores, Inc. 2025 Annual Report was
printed on paper containing fibers from environmentally
appropriate, socially beneficial, and economically
viable forest resources.
Ross Stores, Inc. 2025 Annual Report
Ross Stores, Inc.
5130 Hacienda Drive
Dublin, CA 94568-7579
(925) 965-4400
www.rossstores.com
2025 Annual Report

We are pleased to deliver a solid performance for fiscal 2025. While the first half
presented challenges amid a dynamic macroeconomic environment, including the impact
of tariffs and broader consumer uncertainty, we remained focused on executing our
strategy and managing the business with discipline. As the year progressed, underlying
trends steadily improved, reflecting the strength of our merchandising efforts, enhanced
marketing programs, and improved shopping experience. This momentum built
throughout the back half of the year and culminated in a strong finish, positioning
us well as we move into the year ahead.
FINANCIAL RESULTS Total sales for the year increased 8% to a record $22.8 billion,
up from $21.1 billion last year. Comparable store sales grew 5% on top of a solid 3% gain
in fiscal 2024.
Operating margin for fiscal 2025 was 11.9% versus 12.2% in the prior year, which
included approximately 30 basis points gain from a packaway facility sale. Excluding last
year   s facility sale and this year   s tariff-related costs of about 30 basis points, operating
margin for fiscal 2025 would have increased approximately 30 basis points compared
to the prior year.
Net income for the year was $2.1 billion, similar to last year. Earnings per share were
$6.61, up from $6.32 in the prior year. Excluding the $0.14 per share gain from the
previously mentioned facility sale last year and the approximate $0.16 per share impact
from tariff-related costs this year, earnings per share grew 10%.
dd   s DISCOUNTS In 2025, dd   s DISCOUNTS posted healthy sales gains as the
chain   s value and fashion offerings continued to resonate with shoppers. We are
pleased with the chain   s consistent performance over the past two years. As a result,
we have been strengthening our pipeline and look forward to reaccelerating store
growth beginning in 2026.
STORE GROWTH Regarding our store expansion program, 2025 was an exciting year
of continued growth. Ross Dress for Less opened 80 new locations across the country,
growing in long   established regions while also entering vibrant new markets such as
Connecticut, New York Metro, and Puerto Rico. We also strengthened Ross    presence
in key core states, including California, Florida, and Texas, reinforcing the strong demand
for our value-focused offerings. dd   s DISCOUNTS continued its steady growth with
10 new stores, extending our presence across high   growth Sunbelt states and Georgia.
Inclusive of nine closures, we ended the year with 2,267 stores, consisting of 1,904 Ross
Dress for Less across 44 states, the District of Columbia, Guam, and Puerto Rico, and
363 dd   s DISCOUNTS locations in 22 states, demonstrating our ongoing success in
bringing great value to more communities nationwide.
To Our Stockholders
Corporate Data
CORPORATE HEADQUARTERS
TRANSFER AGENT AND REGISTRAR
Ross Stores, Inc.
5130 Hacienda Drive
Dublin, CA 94568-7579
(925) 965-4400
Computershare
P.O. Box 43006
Providence, RI 02940-3006
CORPORATE WEBSITE
www.rossstores.com
or
Overnight Correspondence:
150 Royall Street, Suite 101
Canton, MA 02021
Inquiries by:
NEW YORK BUYING OFFICE
Ross Stores, Inc.
1372 Broadway
New York, NY 10018-6141
WEBSITE
LOS ANGELES BUYING OFFICE
ONLINE
Ross Stores, Inc.
110 East 9th Street, Suite A-979
Los Angeles, CA 90079-1711
https://www-us.computershare.com/investor/Contact
ANNUAL REPORT (FORM 10-K)
A copy of the Company   s 2025 Annual
Report on Form 10-K as filed with the
Securities and Exchange Commission
is available on our corporate website,
or without charge, by contacting
the following:
Investor Relations Department
Ross Stores, Inc.
5130 Hacienda Drive
Dublin, CA 94568-7579
www.computershare.com/investor
or
TELEPHONE
1-866-455-3120 (domestic holders)
1-800-231-5469 (TDD#)
1-201-680-6578 (foreign holders)
1-201-680-6610 (foreign TDD#)

2025 Annual Report 1

Looking ahead, many of the merchandising, marketing, and in-store initiatives that helped
drive comparable sales growth in 2025 also had a positive impact on our new store
productivity, which further bolsters our confidence in accelerating store opening plans
going forward. As a result, we are planning to open 110 new locations in 2026, which
represents 5% growth versus last year.
Over the long term, we remain confident in the potential to grow Ross and dd   s chains to
2,900 and 700 stores, respectively, and expand our reach to even more customers over
time. This represents a combined opportunity of 3,600 stores, offering significant runway
for continued expansion relative to our current footprint.
CONSISTENT CASH FLOWS FUND GROWTH AND STOCK REPURCHASES
AND DIVIDENDS Operating cash flows helped to fund new store growth and additional
infrastructure improvements in 2025. We invested approximately $819 million in capital
projects during the year, including $421 million to open new locations and refresh and
enhance existing stores and $398 million for distribution, information technology, and
other projects. We ended the year with about $4.6 billion in cash and $1.5 billion in debt.
To maximize our ability to capture profitable market share, we plan to continue investing
over the next several years in our stores, through accelerated new store growth as well
as enhancements to our existing fleet to deliver an improved customer experience. In
addition, we will invest in our supply chain and merchant processes to support long-term
expansion. We also expect to invest in technology to further increase efficiency across
our business.
During fiscal 2025, the Company repurchased a total of 7.1 million shares of common
stock for an aggregate purchase price of $1.05 billion, completing the two-year
$2.1 billion program announced in March 2024, as planned.
Our Board of Directors recently approved a new two-year $2.55 billion stock repurchase
authorization, or approximately $1.275 billion each year for fiscal years 2026 and 2027.
This new plan represents a 21% increase over the recently completed repurchase program.
In addition, the Board also approved a 10% increase in our quarterly cash dividend
to $0.445.
2 Ross Stores, Inc.

2025 Annual Report 3

4/6/2026 Letter Continued (Full PDF)

 

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