Ross Stores Shares Plummet As It Pulls Annual Forecast: Retail Smells Buying Opportunity

Ross Stores (ROST) pulled its fiscal 2025 forecast, blaming market uncertainties and headwinds from tariffs, and guided second-quarter profit below expectations.

Shares of the off-price retailer dropped 11% in extended trading on Thursday.

Ross Stores' quarterly report is another signal of how the U.S.'s aggressive and shifting trade policy is affecting businesses, some more than others.

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"While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China," Jim Conroy said in a statement.

"As such, we expect pressure on our profitability if tariffs remain at elevated levels."

The U.S. and China recently lowered tariffs for 90 days to form a consensus on a long-term trade agreement.

Ross Stores sells brand-name apparel, footwear, and home goods at discounted prices.

The company expects second-quarter EPS of between $1.40 and $1.55. Analysts polled by FactSet are looking for EPS of $1.65.

In Q1, the company reported $1.47 EPS, on an adjusted basis, on sales of $4.98 billion. The figures were higher than Wall Street's estimates of $1.44 EPS and $4.86 billion in sales.

On Stocktwits, the retail sentiment jumped to 'extremely bullish' from 'bullish' the previous day.

One user noted that the stock's decline—and a potential dip below $130—could present a compelling buying opportunity.

Another said the company might be struggling as its stores are ill-stocked.

Ross Stores shares are up 0.6% as of their last close.

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