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Ross Stores Opens 28 Outlets: Achieves Q1 Expansion Target

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Off-price retailer, Ross Stores Inc.ROST is moving on the right track with its store expansion plans as it opened 28 new stores in February and March. This includes 22 Ross Dress For Less and 6 dd's DISCOUNTS stores in 15 different states.

These new store openings signify the first leg of expansion under the company's fiscal 2016 plan to add about 90 stores (70 Ross Dress For Less and 20 dd's DISCOUNTS). With this, the company also achieved its store expansion target for the first quarter of fiscal 2016.

Including the latest store openings, Ross Dress For Less now operates 1,295 stores in 34 states, the District of Columbia and Guam, while dd's DISCOUNTS operates 178 locations in 15 states.

The new stores conform to the company's strategy of expanding its presence in both existing as well as newer markets that commenced in 2011.

Looking ahead, we remain confident about the company's growth potential and believe that it can successfully attain its target of expanding store base to 2,500 over the longer term. This will comprise 2,000 Ross Dress For Less and 500 dd's DISCOUNTS stores.

Additionally, we believe the company is underpenetrated in the 34 states it serves and holds promise to substantially grow its store base in these markets.

Further, this Zacks Rank #3 (Hold) company ended fiscal 2015 on a spectacular note, with better-than-expected top- and bottom-line results for the fourth quarter. Earnings surged 10% year over year to 66 cents per share, coming ahead of the guided range of 60-63 cents as well as the Zacks Consensus Estimate of 64 cents.

Total sales increased nearly 7% to $3,250.7 million, backed by positive response from value-focused customers to the company's extensive collection of brand bargains. Sales also surpassed the Zacks Consensus Estimate of $3,211 million.

Other stocks worth considering in the retail-discount space include Burlington Stores Inc. BURL , Dollar General Corporation DG and Target Corp. TGT , all carrying a Zacks Rank #2 (Buy).

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DOLLAR GENERAL (DG): Free Stock Analysis Report

TARGET CORP (TGT): Free Stock Analysis Report

ROSS STORES (ROST): Free Stock Analysis Report

BURLINGTON STRS (BURL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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