Ross Stores, Inc. stock research
FY2025 Q2
Ross Stores (ROST) Gross Margin — Quarter Ended Aug 2, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but flat versus the year-ago period. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened slightly from the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Aug 2, 2025 · FY2025 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but flat versus the year-ago period. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened slightly from the prior quarter and the same quarter last year.
- The gross margin declined from the prior quarter and the year-ago quarter, as the increase in cost of revenue outpaced the growth in revenue. The relationship between revenue and cost of revenue was the primary observable factor in the margin change.
- Compared to the immediately preceding quarter, revenue was higher but gross margin was lower. Compared to the same quarter one year earlier, revenue was higher while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.6%
Gross profit
$1.5B
Revenue
$5.5B
Cost of revenue
$4.0B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| 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% |
| Aug 2, 2025 | $5.5B | $1.5B | $4.0B | 27.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2025
-0.5 pts
Year-over-year change
Aug 3, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined from the prior quarter and the year-ago quarter, as the increase in cost of revenue outpaced the growth in revenue. The relationship between revenue and cost of revenue was the primary observable factor in the margin change.
Compared to the immediately preceding quarter, revenue was higher but gross margin was lower. Compared to the same quarter one year earlier, revenue was higher while gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has exceeded revenue growth in both comparisons.