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.

"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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