Ross Stores (ROST) risk factors, FY2025 10-K

Ross Stores's FY2025 10-K, filed Apr 01, 2025, lists 18 risk factors in 3 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
183 groups
Section length
5k wordsItem 1A

Ross Stores's biggest risks in the FY2025 10-K

  • Heavy reliance on foreign-manufactured apparel and home goods exposes the business to U.S. trade and tariff policy shifts.
  • Geographic concentration creates significant vulnerability to natural or man-made disasters in California, Texas, and Florida.
  • Opportunistic off-price buying strategies depend heavily on maintaining brand name merchandise availability at desirable discounts.

The risks most specific to Ross Stores

  • MACROECONOMIC AND RETAIL INDUSTRY BUSINESS RISKS

    Changes and uncertainty in U.S. trade or tax policy regarding apparel and home-related merchandise produced in other countries could adversely affect our business

    Changes in U.S. trade and tax policies could negatively impact the apparel and home-related merchandise manufactured overseas that we rely on.

  • MACROECONOMIC AND RETAIL INDUSTRY BUSINESS RISKS

    Competitive pressures in the apparel and home-related merchandise retailing industry are high

    Intense competition in off-price retail and low barriers to entry could hurt our market share.

  • MACROECONOMIC AND RETAIL INDUSTRY BUSINESS RISKS

    Unexpected changes in the level of consumer spending on or preferences for apparel and home-related merchandise could adversely affect us

    Unpredictable shifts in consumer spending and preferences for apparel and home goods can harm our sales.

  • STRATEGIC RISKS

    We depend on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of our buyers to source and purchase merchandise to enable us to offer customers a wide assortment of merchandise at competitive prices

    Our off-price model depends on sourcing branded merchandise at steep discounts through opportunistic buying and lean inventories.

  • STRATEGIC RISKS

    Our inability to continually attract, train, and retain associates with the retail talent necessary to execute our off-price retail strategies, as well as labor shortages, increased turnover, or increased labor costs could adversely affect our operating results

    Labor shortages, turnover, and rising wages in our stores and distribution centers could increase costs and hurt operations.

  • STRATEGIC RISKS

    We need to obtain acceptable new store sites with favorable consumer demographics to achieve our planned growth

    We compete for new retail real estate locations with favorable demographics to execute our store growth strategy.

  • STRATEGIC RISKS

    We are subject to risks associated with importing and selling merchandise produced in other countries

    Importing foreign merchandise exposes us to tariffs, shipping constraints, inflation, and supply chain disruptions.

  • OPERATIONAL RISKS

    In order to achieve our planned gross margins, we must effectively manage our inventories, markdowns, and inventory shortage

    Inaccurate inventory forecasting can force heavy markdowns or cause stockouts that reduce profit margins.

  • OPERATIONAL RISKS

    A natural or man-made disaster in a region where we have a concentration of stores, offices, or a distribution center could harm our business

    Nearly 50 percent of our stores and half of our distribution capacity are concentrated in California, Texas, and Florida.

  • OPERATIONAL RISKS

    Consumer problems or legal issues involving the quality, safety, or authenticity of products we sell could harm our reputation, result in lost sales, and/or increase our costs

    Our opportunistic buying model involves new vendors and product categories, increasing product safety and regulatory risks.

All 18 risk factors

Headings as the filing states them, in filing order.

MACROECONOMIC AND RETAIL INDUSTRY BUSINESS RISKS

  1. 01Changes and uncertainty in U.S. trade or tax policy regarding apparel and home-related merchandise produced in other countries could adversely affect our business
  2. 02Competitive pressures in the apparel and home-related merchandise retailing industry are high
  3. 03Unexpected changes in the level of consumer spending on or preferences for apparel and home-related merchandise could adversely affect us
  4. 04Adverse or unseasonable weather may affect shopping patterns and consumer demand for seasonal apparel and other merchandise, and may result in temporary store closures and disruptions in deliveries of merchandise to our stores
  5. 05We may experience volatility in sales and earnings

STRATEGIC RISKS

  1. 06We depend on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of our buyers to source and purchase merchandise to enable us to offer customers a wide assortment of merchandise at competitive prices
  2. 07Our inability to continually attract, train, and retain associates with the retail talent necessary to execute our off-price retail strategies, as well as labor shortages, increased turnover, or increased labor costs could adversely affect our operating results
  3. 08We need to obtain acceptable new store sites with favorable consumer demographics to achieve our planned growth
  4. 09To achieve growth, we need to expand in existing markets and enter new geographic markets
  5. 10We are subject to risks associated with importing and selling merchandise produced in other countries
  6. 11Our ability to effectively advertise and market our business could impact customer traffic and demand for our merchandise

OPERATIONAL RISKS

  1. 12In order to achieve our planned gross margins, we must effectively manage our inventories, markdowns, and inventory shortage
  2. 13Disruptions in our supply chain or in our information systems could impact our ability to process sales and to deliver product to our stores in a timely and cost-effective manner
  3. 14Damage to our corporate reputation or brands could adversely affect our sales and operating results
  4. 15To support our continuing operations, our new store and distribution center growth plans and other capital investment plans, our stock repurchase program, our debt repayments, and our quarterly dividends, we must maintain sufficient liquidity
  5. 16A natural or man-made disaster in a region where we have a concentration of stores, offices, or a distribution center could harm our business
  6. 17Consumer problems or legal issues involving the quality, safety, or authenticity of products we sell could harm our reputation, result in lost sales, and/or increase our costs
  7. 18An adverse outcome in various legal, regulatory, or tax matters could damage our reputation or brand and increase our costs

Other Ross Stores 10-Ks

  • FY2026 10-K risk factors
    18 risks1 new1 dropped3 reworded

    China tariff exposure and foreign sourcing risks dominate trade policy updates.

    Filed Mar 31, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.