Ross Stores, Inc. stock research
FY2025 Q3
Ross Stores (ROST) Gross Margin — Quarter Ended Nov 1, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher in both comparisons. Gross margin improved sequentially but weakened relative to the year-ago period.
Gross margin takeaway
Quarter ended Nov 1, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher in both comparisons. Gross margin improved sequentially but weakened relative to the year-ago period.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue from the prior quarter, leading to an improved gross margin.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.0%
Gross profit
$1.6B
Revenue
$5.6B
Cost of revenue
$4.0B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| 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% |
| Nov 1, 2025 | $5.6B | $1.6B | $4.0B | 28.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 2, 2025
+0.4 pts
Year-over-year change
Nov 2, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue from the prior quarter, leading to an improved gross margin.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as it has increased in both comparisons.