What it does
Ross Stores operates two off-price apparel and home-fashion store brands: Ross Dress for Less and dd’s DISCOUNTS. The company states that both brands sell first-quality, in-season apparel, accessories, footwear, and home fashions for the family at discounts relative to other retail formats. Its merchandise also includes categories such as beauty, bed and bath, food, toys, luggage, pet accessories, electronics, jewelry, and cookware. The filing describes a store-based, self-service shopping model, with frequent receipt of new merchandise and an assortment intended to create a “treasure-hunt” experience.
Source: Ross Stores, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company generates revenue through its single reportable segment, shown in the segment table below. That segment reported $22.8 billion of revenue and represented 100.0% of company revenue. The filing says Ross and dd’s DISCOUNTS purchase a mix of advance-of-season, in-season, past-season, close-out, upfront, in-house-brand, and vendor-brand merchandise. It generally buys merchandise at lower prices than conventional retailers and sells it at discounts, while using markdown reviews to support inventory turnover and the flow of new merchandise to stores.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Reportable Segment | $21.1 billion | — | — |
Source: Ross Stores, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
Ross targets customers primarily from middle-income households, while dd’s DISCOUNTS targets households with lower to more moderate incomes. The company states that both brands target value-driven customers. As of January 31, 2026, Ross had 1,904 locations across 44 states, the District of Columbia, Guam, and Puerto Rico; dd’s DISCOUNTS had 363 stores in 22 states. Stores are located predominantly in community and neighborhood shopping centers in heavily populated urban and suburban areas. The filing also states that all of its stores are in the United States and its territories.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Reportable Segment | $21.1 billion | — | — |
Source: Ross Stores, Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov
Competition
The filing describes the retail apparel and home-fashion markets as highly fragmented and competitive. It identifies competitive factors as significant discounts on brand-name merchandise, a balanced assortment for target customers, and convenient, easy-to-shop store environments. The company states that it competes for customers, associates, store locations, and merchandise with other off-price retailers, traditional department stores, mass merchandisers, specialty stores, online and catalog businesses, and other local, regional, and national retailers. The filing does not name individual retail competitors.
Source: Ross Stores, Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov
Key risks
- Changes in the macroeconomic environment, government policy, geopolitical conditions, inflation, tariffs, and supply-chain disruptions may affect costs, consumer spending, sales, and profitability.
- Changes and uncertainty in U.S. trade or tax policy could increase costs or reduce supply; more than half of goods sold originate from China.
- Competitive pressures and the pace of change in retailing are high, including competition from online and store-based formats.
- Unexpected changes in consumer spending, trends, preferences, or demand could affect merchandising decisions and operating results.
- The company depends on the availability, quantity, and quality of brand-name merchandise at discounts, and on buyers’ ability to source and purchase it.
- Difficulty attracting, training, and retaining associates, labor shortages, turnover, or increased labor costs could affect operating results.
Source: Ross Stores, Inc. Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
As of January 31, 2026, the company had approximately 111,000 associates, including full- and part-time associates in stores, distribution centers, and buying and corporate offices; over 85% worked in retail stores. It also hires temporary associates, especially in peak seasons, and states that no associates are covered by a collective bargaining agreement. The company operates distribution processing facilities, regional cross-dock facilities, and packaway warehouses. It says shipments reach stores three to six times weekly depending on location. Sales are generally higher in the second half of the year, including back-to-school and holiday periods.
Source: Ross Stores, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov