Customers Love this Low-Price Retailer, But Is the Stock a Buy?
Ross Stores (NASDAQ: ROST) had a really strong third quarter in 2023. The headline-grabbing number was 5% same-store sales growth. That was very good, but there are some nuances here. And while current shareholders should be pleased by the company's success, investors looking at the stock might want to tread with a bit of caution. Here's why.
Sales at Ross came in at $4.9 billion in the third quarter of 2023, up from $4.6 billion in the prior year. That's a roughly 6.5% increase. There are two key factors that account for that number. The first is new store openings, which lifted the top line but say little about how the existing business is performing. In fact, strong top-line growth driven by new stores can often mask weakening performance at existing stores. That's why investors need to pay attention to same-store sales growth when looking at a retailer like Ross.
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Source Fool.com
