If Ross Dress for Less is your go-to for deals, you might want to brace yourself. The off-price department store just reported a dip in profits, and now, a Ross price hike might be on the way.
What’s behind the possible increase?
Ross just released its Q1 2025 earnings report, and the numbers are a mixed bag.
While sales held steady compared to this time last year, net income dropped nearly 2%, landing at $479 million. That may not sound like a crisis, but in retail, even a small drop can mean big changes ahead.
In a recent earnings call, CEO Jim Conroy said the quarter got off to a “slower start” during February’s spring selling season and pointed to “prolonged inflation” as the root of the issue. It’s starting to hit their customers, especially when it comes to how and what they’re buying.
“In terms of customer behavior, perhaps you could say there’s a little bit of a shift towards more functional items versus discretionary items,” Conroy explained.
In other words, people are sticking to the basics and skipping the extras.
A Ross price hike ahead?
Ross operates on thin margins, so any dip in spending makes a difference. If inflation continues, a price hike might be one of the only ways the retailer can protect its bottom line, especially as more customers pull back on non-essentials.
Right now, no price increases have been confirmed. But based on the earnings call and recent performance, it sounds like Ross is already thinking ahead.
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