Ross Stores, Inc. stock research
FY2025 Q1
Ross Stores (ROST) Gross Margin — Quarter Ended May 3, 2025
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined; gross margin improved. Versus the same quarter last year, revenue and cost of revenue were higher, gross profit was stable, and gross margin was slightly higher.
Gross margin takeaway
Quarter ended May 3, 2025 · FY2025 Q1
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined; gross margin improved. Versus the same quarter last year, revenue and cost of revenue were higher, gross profit was stable, and gross margin was slightly higher.
- The gross margin improved sequentially, driven by a proportionally larger decline in cost of revenue relative to revenue. Compared to the prior year, the margin was essentially stable.
- Compared to the immediately preceding quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin improved. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was essentially unchanged, and gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.2%
Gross profit
$1.4B
Revenue
$5.0B
Cost of revenue
$3.6B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+0.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 3, 2024 | $5.3B | $1.5B | $3.8B | 28.3% |
| Nov 2, 2024 | $5.1B | $1.4B | $3.6B | 28.3% |
| Feb 1, 2025 | $5.9B | $1.6B | $4.3B | 26.5% |
| May 3, 2025 | $5.0B | $1.4B | $3.6B | 28.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2025
+1.6 pts
Year-over-year change
May 4, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially, driven by a proportionally larger decline in cost of revenue relative to revenue. Compared to the prior year, the margin was essentially stable.
Compared to the immediately preceding quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin improved. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was essentially unchanged, and gross margin was slightly higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as the sequential improvement in gross margin was driven by a sharper decline in costs.