DUBLIN, Calif. - Ross Stores, Inc. (NASDAQ:ROST) has announced the appointment of James Conroy as its new Chief Executive Officer, effective February 2, 2025. Conroy, with over 25 years in the retail industry, will succeed Barbara Rentler and is set to join the company as CEO-Elect on December 2, 2024. At that time, he will also become a member of the Ross Stores Board of Directors.
Conroy's retail management experience includes his role as President and CEO of Boot Barn (NYSE:BOOT) since 2012, a prominent lifestyle retailer. He has also held executive positions at Claire's Stores, Inc., including Chief Operating Officer and Interim Co-CEO. His appointment is the culmination of an extensive search following Ross's announcement of a long-term CEO succession plan in June 2023.
Executive Chairman Michael Balmuth expressed confidence in Conroy's ability to foster profitable growth and maximize shareholder value, citing his track record in customer-centric retail strategies. Balmuth also extended gratitude to Rentler for her decade as CEO and almost 40 years with the company, acknowledging her role in establishing a strong foundation for Ross Stores' future. Rentler will transition to an advisory role to assist with merchandising strategies until March 31, 2027.
Rentler thanked the Ross Stores team for their dedication, which has contributed to the company's expansion and profitability. Conroy shared his enthusiasm for joining Ross Stores, noting the company's significant growth and strong customer-focused value offerings.
Ross Stores, an S&P 500, Fortune 500, and Nasdaq 100 company, reported fiscal 2023 revenues of $20.4 billion. The company operates Ross Dress for Less, the largest off-price apparel and home fashion chain in the U.S., and dd's DISCOUNTS stores, offering savings on first-quality, in-season merchandise.
This leadership transition is based on a press release statement and reflects Ross Stores' strategic planning for continued success in the retail sector.
In other recent news, Ross Stores, Inc. has been making significant strides in its business trajectory. The company reported a 7% increase in total sales for the second quarter, reaching $5.3 billion, and a 4% rise in comparable store sales. Earnings per share (EPS) for the quarter were $1.59, up from $1.32 in the same quarter the previous year.
Ross Stores also announced key leadership changes, with Karen Fleming and Karen Sykes stepping into the roles of President and Chief Merchandising Officer at Ross Dress for Less and dd's DISCOUNTS respectively. This move is aimed at enhancing the company's strategic execution and market share growth.
Analysts have responded positively to these developments. Citi maintained a Buy rating for Ross Stores, highlighting the company's strong consumer value focus and potential for growth. Similarly, Loop Capital raised its price target for Ross Stores from $170 to $190, keeping a Buy rating, following the company's upward revision of their full-year earnings per share (EPS) forecast by approximately 19 cents.
These recent developments demonstrate Ross Stores' commitment to strategic initiatives and financial planning, with management expressing optimism about the company's direction. The company's projections for comparable store sales growth of 2-3% for the third and fourth quarters align with both Loop Capital's and consensus estimates.
InvestingPro Insights
As Ross Stores prepares for its leadership transition, InvestingPro data provides valuable insights into the company's financial health and market position. With a market capitalization of $47.62 billion, Ross Stores stands as a prominent player in the Specialty Retail industry, as highlighted by one of the InvestingPro Tips.
The company's financial performance remains robust, with revenue reaching $21.09 billion in the last twelve months as of Q2 2025, representing a growth of 9.81%. This solid revenue growth aligns with the company's expansion strategy mentioned in the article and supports the confidence expressed in the incoming CEO, James Conroy.
Ross Stores' profitability is also noteworthy, with a gross profit margin of 32.48% and an operating income margin of 12.06% for the same period. These figures underscore the company's ability to maintain profitability while offering value to customers, a key aspect of its business model highlighted in the article.
An InvestingPro Tip indicates that Ross Stores has raised its dividend for 3 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a dividend yield of 1.02% and a dividend growth rate of 9.7% in the last twelve months. Such financial discipline may prove beneficial as the company navigates the leadership transition.
Another relevant InvestingPro Tip suggests that Ross Stores is trading at a low P/E ratio relative to near-term earnings growth. With a current P/E ratio of 23.02 and a PEG ratio of 0.73, this could indicate potential value for investors as the company moves forward under new leadership.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Ross Stores, providing a deeper understanding of the company's financial position and market outlook.
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