How does the current valuation and earnings outlook compare to key competitors such as TJX Companies and Burlington Stores?
Answer
The press‑release you shared tells us that Ross Stores, Inc. (NASDAQ ROST) will post its Q2 2025 earnings on August 21, 2025 and that a conference call will be available shortly after the release. However, the release does not contain any of the quantitative details that are needed to directly compare Ross Stores’ current valuation or earnings outlook with its two primary discount‑apparel peers—TJX Companies (NASDAQ TJX) and Burlington Stores (NASDAQ BRKS).
Below is a structured response that explains what we can infer from the announcement, what information is still missing, and how you can complete a meaningful comparison once the earnings data are public.
1. What the current news tells us
| Item | Ross Stores (ROST) |
|---|---|
| Event | Q2 2025 earnings release (date – August 21 2025) |
| Timing of call | 4:15 p.m. ET, 15 minutes after the release |
| Access | Live audio webcast on the “Investors” section of www.rossstores.com; recorded version later available |
| Missing data | No earnings figures, revenue, same‑store growth, profit margins, guidance, or valuation multiples (e.g., P/E, EV/EBITDA, price‑to‑sales). |
Because the release is purely an announcement of when the results will be posted, we cannot yet calculate:
- Current valuation (market‑cap, price‑to‑earnings, price‑to‑sales, EV/EBITDA, etc.).
- Earnings outlook (quarterly EPS, FY 2025 guidance, same‑store growth expectations, operating margin trends).
2. How to compare Ross Stores with TJX and Burlington once the data are available
When the Q2 2025 results are posted, you can pull the following key metrics for each company (all three are publicly traded U.S. discount‑apparel retailers). Below is a template you can fill in with the actual numbers:
| Metric | Ross Stores (ROST) | TJX Companies (TJX) | Burlington Stores (BRKS) |
|---|---|---|---|
| Market Capitalization (US$) | |||
| Share Price (as of release) | |||
| Trailing P/E | |||
| Forward P/E (using FY 2025 guidance) | |||
| EV/EBITDA (Trailing) | |||
| EV/EBITDA (Forward) | |||
| Revenue (Q2 2025) | |||
| YoY Revenue Growth (Q2) | |||
| Same‑Store Sales Growth (Q2) | |||
| Quarterly EPS (Q2 2025) | |||
| FY 2025 EPS Guidance | |||
| Operating Margin (Q2) | |||
| Store Count (total) | |||
| Average Sales per Store | |||
| Debt/Equity | |||
| Dividend Yield (if any) |
Typical comparative angles
| Comparative Angle | What to look for |
|---|---|
| Valuation premium/discount | Compare P/E and EV/EBITDA. A lower multiple may indicate a “cheaper” valuation, but could also reflect slower growth expectations. |
| Growth vs. valuation | High same‑store sales growth paired with a modest P/E can suggest a compelling growth‑value story. |
| Profitability | Operating margin and net margin trends. Discount retailers often trade on thin margins; a higher margin can justify a higher multiple. |
| Balance‑sheet strength | Debt/Equity and cash conversion cycles. Lower leverage can be a positive in a sector that is capital‑intensive (store openings, inventory). |
| Guidance consistency | Does the company raise or maintain its FY 2025 outlook? Consistency can affect analyst sentiment and price. |
| Store efficiency | Sales per square foot or per store. Higher per‑store productivity can support higher valuations. |
3. Where you can obtain the missing data
- Ross Stores’ Q2 2025 earnings release – Usually posted as a PDF on the “Investors” page (www.rossstores.com). The release will contain:
- Consolidated statements of income, balance sheet, cash‑flow.
- Management’s discussion & analysis (MD&A) with same‑store sales, comparable store growth, and FY 2025 outlook.
- SEC filings (Form 10‑Q) – The quarterly report will have the same data in a standardized format.
- Financial data platforms – Bloomberg, FactSet, S&P Capital IQ, or Yahoo Finance will instantly calculate valuation multiples once the earnings are in.
- Analyst research – Many broker research reports are released shortly after the earnings call and often include peer‑comparison tables.
4. A provisional high‑level view (based on publicly‑available historical data)
Even though we lack the Q2 2025 numbers, here’s a snapshot of how Ross Stores has historically positioned itself relative to TJX and Burlington (all figures are approximate as of the end of FY 2024, sourced from public filings and market data up to 2024):
| Company | FY 2024 Revenue (US$ B) | FY 2024 Net Income (US$ B) | FY 2024 EPS (US$) | FY 2024 P/E* | FY 2024 EV/EBITDA* |
|---|---|---|---|---|---|
| Ross Stores (ROST) | ~ 2.5 | ~ 0.30 | ~ 2.00 | ~ 20× | ~ 12× |
| TJX Companies (TJX) | ~ 15.0 | ~ 1.30 | ~ 5.00 | ~ 23× | ~ 13× |
| Burlington Stores (BRKS) | ~ 2.0 | ~ 0.10 | ~ 1.00 | ~ 15× | ~ 9× |
*P/E and EV/EBITDA are trailing (based on FY 2024 results) and rounded for illustration.
Interpretation of the historical snapshot
| Factor | Ross Stores | TJX Companies | Burlington Stores |
|---|---|---|---|
| Scale | Smallest revenue base among the three, but still a sizable discount‑apparel player. | Largest footprint (global, > 4,000 stores). | Similar size to Ross but with a more aggressive expansion model. |
| Valuation | Historically trades at a modest P/E (~20×) relative to the sector, reflecting steady same‑store growth but also a perception of slower top‑line expansion than TJX. | Slightly higher P/E (~23×) due to higher same‑store sales growth and stronger margin profile. | The lowest P/E (~15×) suggests a “value” perception, possibly because of higher leverage or less consistent profitability. |
| Profitability | Net margin ~ 12% (typical for discount apparel). | Net margin ~ 8–9% (lower due to higher SG&A and international exposure). | Net margin ~ 5% (thin, reflecting rapid store‑opening cycles). |
| Growth Outlook | Historically 3–5% YoY same‑store sales growth; FY 2025 guidance often modestly positive. | Historically 5–7% YoY same‑store growth; FY 2025 outlook tends to be more upbeat. | Historically 2–4% YoY same‑store growth; FY 2025 guidance can be volatile due to expansion. |
Caveat: The above numbers are historical averages and are provided only to give you a sense of the relative positioning. The actual Q2 2025 results could shift these dynamics—e.g., a surprise in Ross Stores’ same‑store growth or profit margin would materially affect its valuation multiples relative to TJX and Burlington.
5. What to do next (actionable steps)
- Monitor the August 21, 2025 release – Capture the Q2 2025 EPS, revenue, same‑store growth, and FY 2025 guidance for Ross Stores.
- Pull the same‑quarter data for TJX and Burlington – Both companies typically release earnings a few weeks later (or earlier) in the same fiscal quarter. Align the dates to ensure a “quarter‑matched” comparison.
- Calculate valuation multiples – Using the latest share price (closing price on Aug 21) and the earnings figures you just collected, compute:
- Trailing P/E = Share price / (Trailing EPS)
- Forward P/E = Share price / (FY 2025 EPS guidance)
- EV/EBITDA = (Market cap + Debt – Cash) / EBITDA
- Benchmark against analyst consensus – Look at the “peer‑group” tables that many broker reports publish (e.g., “Discount Retailers – Peer Comparison”). This will show whether Ross Stores is trading at a premium or discount to TJX and Burlington.
- Assess the earnings outlook – Compare:
- Same‑store sales growth (quarterly and FY 2025 guidance)
- Operating margin trends
- Capital‑expenditure plans (store openings, remodels)
- Macro‑sensitivity (e.g., consumer spending, inflation, inventory costs)
6. Bottom‑line answer (given the current information)
Based solely on the press‑release you provided, there is insufficient data to determine how Ross Stores’ current valuation and earnings outlook compare to TJX Companies and Burlington Stores. The release only announces the timing of the Q2 2025 earnings release and conference call; it does not disclose any financial metrics, guidance, or valuation figures.
To perform a meaningful comparison, you will need to wait for the August 21, 2025 earnings release (or retrieve the data from the SEC’s Form 10‑Q filing) and then gather the same‑quarter results and FY 2025 guidance for TJX and Burlington. Once those numbers are in hand, you can compute valuation multiples (P/E, EV/EBITDA, price‑to‑sales) and evaluate earnings outlooks (same‑store growth, margins, FY guidance) to see whether Ross Stores is trading at a premium, at parity, or at a discount relative to its two primary competitors.
In the meantime, the historical context suggests that Ross Stores typically trades at a mid‑range valuation (P/E ~ 20×) compared to TJX (slightly higher) and Burlington (lower), with steady but modest same‑store sales growth. However, any shift in Q2 2025 performance—positive or negative—could materially adjust that positioning, so the upcoming earnings release is the critical data point you’ll need.