Ross Stores, Inc. (NasdaqGS:ROST) recently opened 16 Ross Dress for Less stores and three dd's DISCOUNTS stores, contributing to its growth strategy of adding approximately 90 stores within fiscal 2025. Despite this expansion, Ross Stores saw its stock price decline by 3% last week. This downward movement coincided with broader market turbulence, as the Dow Jones and S&P 500 also experienced declines due to heightened trade tensions following tariff announcements from the Trump administration. Furthermore, Ross Stores reported a slight year-over-year decline in fourth-quarter earnings, with EPS down for the quarter despite an increase for the full year. This reflects broader concerns about economic uncertainties, which likely influenced market sentiment. Additionally, the company's recent 10% increase in its quarterly dividend may not have been enough to counteract the impact of these challenges on investor confidence amidst general market volatility.

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Ross Stores, Inc. has seen its total returns, including dividends, rise by 86.89% over the past five years, showcasing a robust performance in an evolving market. This period of growth included notable events such as strategic business expansions, including the addition of new stores like the Bonita Springs location, and enhanced shareholder returns through dividend hikes, such as the recent 10% increase payable on March 31, 2025.

While the company's earnings growth has been strong historically, recent financial results revealed sales challenges; the fourth quarter saw sales and net income declines compared to the previous year. Furthermore, despite high-quality earnings, Ross Stores' shares have recently underperformed relative to both the US market and industry over the past year. The recent share repurchase plan demonstrated an effort to increase shareholder value amid these challenges. As of today, Ross Stores is trading below its estimated fair value, indicating potential future opportunities amidst ongoing market conditions.

• See whether Ross Stores' current market price aligns with its intrinsic value in our detailed report
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:ROST.

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