Ross Stores Faces Slower Growth With Shifts In Lower-Income Customers Preference, Says Analyst

Telsey Advisory analyst Dana Telsey maintained a Market Perform rating on Ross Stores and reduced the price target from $175 to $150. Despite reporting a slight drop in 4Q24 EPS, the company outperformed earnings expectations, driven by a one-time gain. However, the FY25 outlook and 1Q25 guidance fell short of consensus due to slowed sales growth and challenges with lower-income consumers.