ROST – Expanding its flywheel with strong execution on top of industry tailwinds; Initiate Buy/$270 PT

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ROST – Expanding its flywheel with strong execution on top of industry tailwinds; Initiate Buy/$270 PT

Truist Securities

Equity Research Report May 18, 2026

CONSUMER: Softlines Ross Stores, Inc. (ROST)

ROST – Expanding its flywheel with strong execution on top of Joseph Civello

212-590-0968 industry tailwinds; Initiate Buy/$270 PT

Joseph.Civello@truist.com

Craig Larsen The off-price channel offers a very attractive value prop to (1) brands (efficient inventory

212-319-2120 mgmt assistance), (2) landlords (stable & attractive traffic), and (3) shoppers (20%-60%

Craig.Larsen@truist.com off hot products in a differentiated treasure hunt experience). With a long track record of

strong/consistent execution, its scaled leadership position (second largest off-pricer in the

Scot Ciccarelli, CFA US), and a ~60% store expansion opp, we believe LT topline growth visibility for ROST is

212-319-3920 robust (with opps for efficiencies on margins as well). Further, we think traction on social

Scot.Ciccarelli@truist.com media will continue to fuel a more rapid expansion of their flywheel. Initiate Buy/$270 PT.

Strong value prop for brands – With all sales coming via brick & mortar, ROST offers

Stock Rating BUY brands a clean/economical way to clear inventories vs. other potential channels. While

Initiate we think the company’s robust social media strategy on platforms like TikTok has made

ROST somewhat of a less “invisible” option (vs peers), we believe it has meaningfully

Price Target $270.00 improved Ross’ reputation as a “cool” shopping destination. As a result, we believe partners

Initiate are becoming more comfortable collaborating on marketing efforts, especially around key

shopping events (dynamics we would not have expected to see in the off-price channel

years ago).