Ross StoresMEX:ROST 79 Gross Margin % is 29.61% as of Apr. 2026, which is 7% above its 10-year median of 27.75. GuruFocus rates MEX:ROST with a GF Score™ of 79/100 and a GF Value™ of MXN3,342.67 (Modestly Overvalued). Among 1,117 Retail - Cyclical companies, Ross Stores ranks worse than 65.89% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ross Stores's Gross Profit for the
three
months ended in Apr. 2026 was MXN31,177 Mil. Ross Stores's Revenue for the
three
months ended in Apr. 2026 was MXN105,280 Mil. Therefore, Ross Stores's Gross Margin % for the quarter that ended in Apr. 2026 was 29.61%.
The historical rank and industry rank for Ross Stores's Gross Margin % or its related term are showing as below:
MEX:ROST'
s Gross Margin % Range Over the Past 10 Years
Min: 21.49 Med: 27.75 Max: 28.95
Current: 28.09
During the past 13 years, the highestGross Margin % of Ross Stores was 28.95%. The lowest was 21.49%. And the median was 27.75%.
MEX:ROST's Gross Margin % is ranked worse than 65.89% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs MEX:ROST: 28.09
Ross Stores had a gross margin of 29.61% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ross Stores was 4.00% per year.
Ross Stores (MEX:ROST) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ross Stores had a gross margin of 29.61% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ross Stores Gross Margin % Related Terms
Ross Stores Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ross Stores's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ROST vs BURL, LULU, GAP: Gross Margin % Comparison
For the Apparel Retail subindustry, Ross Stores's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ross Stores Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ross Stores's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ross Stores (MEX:ROST) has a Gross Margin % of 29.61% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ross Stores and its competitors. This is near median its historical median of 27.75. Over the past decade, Ross Stores' Gross Margin % has ranged from 21.49 to 28.95. According to the industry distribution chart, Ross Stores ranks #736 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 65.9%.
Is Ross Stores' Gross Margin % too high?
Ross Stores' current Gross Margin % of 29.61% is near median its 10-year median of 27.75. Over the past 10 years, this metric has ranged from a low of 21.49 to a high of 28.95. The Retail - Cyclical industry median Gross Margin % is 36.23. Ross Stores' value of 29.61% is 18.3% below this industry median. Based on the distribution chart, Ross Stores ranks #736 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Ross Stores has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ross Stores' Gross Margin % compare to BURL and LULU?
According to the Retail - Cyclical industry distribution chart, Ross Stores ranks #736 out of 1117 companies for Gross Margin %. This places Ross Stores in the lower half of its industry. The industry median Gross Margin % is 36.23. Ross Stores' value of 29.61% is 18.3% below this benchmark. Historically, Ross Stores' own Gross Margin % has ranged from 21.49 to 28.95 over the past decade. While the company's 10-year median is 27.75 vs. the industry median of 36.23, Ross Stores has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ross Stores's current Gross Margin % of 29.61% is 18.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ross Stores and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ross Stores's current Gross Margin % is 29.61%, which is near median its own 10-year median of 27.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ross Stores stock overvalued right now?
Based on GuruFocus' analysis, Ross Stores (MEX:ROST) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN3,342.67, compared to a current price of MXN4,100.00 — trading 22.7% above its estimated fair value. The current Gross Margin % is 29.61%, which is near median its 10-year median of 27.75 and 18.3% below the Retail - Cyclical industry median of 36.23. Ross Stores' overall GF Score™ is 79/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ross Stores (MEX:ROST), the current Gross Margin % is 29.61% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ross Stores (MEX:ROST) Overvalued in 2026?
Based on GuruFocus' analysis, Ross Stores stock appears to be overvalued.
The current stock price of MXN4,100.00 is trading 22.7% above its estimated GF Value™ of MXN3,342.67.
GuruFocus considers Ross Stores to be Modestly Overvalued.
Key valuation signals for MEX:ROST:
Gross Margin %: 29.61% (near median its 10-year median of 27.75)
GF Value™: MXN3,342.67 vs. price of MXN4,100.00 (22.7% above fair value)
Industry Position: 18.3% below the Retail - Cyclical median (#736 of 1117)
No single metric tells the full story. See the MEX:ROST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ross Stores, founded in 1982, is a US-focused off-price apparel and home fashion retailer operating more than 2,100 stores across 43 states, primarily under the Ross Dress for Less banner, with a smaller footprint through dd's Discounts. In fiscal 2025, the company generated over $22 billion in sales. Ross offers branded apparel, footwear, accessories, and home goods at a 20%-60% discount to department and specialty store prices, sourcing closeouts and excess inventory from vendors worldwide.
79GF Score
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