Shares of Ross Stores Inc.ROST jumped 3.1% after the company announced that it achieved its target of introducing 90 new stores in fiscal 2015 (70 Ross and 20 dd's DISCOUNTS stores).
The company, which remains on track with its store expansion plans, opened 26 new stores in September and October. These include 19 Ross Dress For Less and 7 dd's DISCOUNTS stores spanning 14 states. The company had inaugurated 27 new stores, including 19 Ross Dress For Less and 8 dd's DISCOUNTS stores in Jul 2015.
The new store openings are in line with the company's strategy of expanding its presence in both existing as well as newer markets.
Ross is particularly focused on expanding in the Midwest region, as is evident from the fact that in October, it introduced three stores in Wisconsin - in the Midwest region. This also extended Ross's footprint to 34 states. Prior to this, in July, Ross opened eight stores in the markets of Illinois, Kentucky, Kansas and Indiana, all in the Midwest region.
Including the latest store openings, the company operates 1,276 Ross Dress For Less stores in 34 states, the District of Columbia and Guam, while 172 dd's DISCOUNTS locations in 15 states.
Looking ahead, we remain confident of the company's growth potential and believe that it can successfully accomplish its goal of expanding store base to 2,500 over the long term. This will comprise 2,000 Ross Dress For Less and 500 dd's DISCOUNTS stores.
Additionally, we believe that the company's business remains underpenetrated in the 34 states where it serves, and its prospects to substantially grow its store base in these markets appear promising.
Ross currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the retail-discount space worth considering include Burlington Stores, Inc. BURL , Big Lots Inc. BIG and Target Corp. TGT , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report