Ross StoresFRA:RSO -2.09%90 Operating Margin % is 13.38% as of Apr. 2026, which is 9% above its 10-year median of 12.29. GuruFocus rates FRA:RSO with a GF Score™ of 90/100 and a GF Value™ of €153.10 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Ross Stores ranks better than 83.78% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ross Stores's Operating Income for the
three
months ended in Apr. 2026 was €687 Mil. Ross Stores's Revenue for the
three
months ended in Apr. 2026 was €5,139 Mil. Therefore, Ross Stores's Operating Margin % for the quarter that ended in Apr. 2026 was 13.38%.
Good Sign:
Ross Stores Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Ross Stores's Operating Margin % or its related term are showing as below:
FRA:RSO'
s Operating Margin % Range Over the Past 10 Years
Min: 1.51 Med: 12.29 Max: 14.49
Current: 12.22
FRA:RSO's Operating Margin % is ranked better than 83.78% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs FRA:RSO: 12.22
Ross Stores's 5-Year Average Operating Margin % Growth Rate was 34.50% per year.
Ross Stores's Operating Income for the
three
months ended in Apr. 2026 was €687 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was €2,484 Mil.
Ross Stores (FRA:RSO) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ross Stores Operating Margin % Related Terms
Ross Stores Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ross Stores's Operating 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.
FRA:RSO vs BURL, LULU, GAP: Operating Margin % Comparison
For the Apparel Retail subindustry, Ross Stores's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ross Stores's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ross Stores's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Ross Stores (FRA:RSO) has a Operating Margin % of 13.38% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ross Stores and its competitors. This is near median its historical median of 12.29. Over the past decade, Ross Stores' Operating Margin % has ranged from 1.51 to 14.49. According to the industry distribution chart, Ross Stores ranks #183 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 16.2%.
Is Ross Stores' Operating Margin % too high?
Ross Stores' current Operating Margin % of 13.38% is near median its 10-year median of 12.29. Over the past 10 years, this metric has ranged from a low of 1.51 to a high of 14.49. The Retail - Cyclical industry median Operating Margin % is 3.91. Ross Stores' value of 13.38% is 242.6% above this industry median. Based on the distribution chart, Ross Stores ranks #183 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ross Stores has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ross Stores' Operating Margin % compare to BURL and LULU?
According to the Retail - Cyclical industry distribution chart, Ross Stores ranks #183 out of 1128 companies for Operating Margin %. This places Ross Stores in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Ross Stores' value of 13.38% is 242.6% above this benchmark. Historically, Ross Stores' own Operating Margin % has ranged from 1.51 to 14.49 over the past decade. While the company's 10-year median is 12.29 vs. the industry median of 3.91, Ross Stores has consistently been above 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 Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ross Stores's current Operating Margin % of 13.38% is 242.6% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ross Stores and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ross Stores's current Operating Margin % is 13.38%, which is near median its own 10-year median of 12.29. 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 (FRA:RSO) is currently considered Significantly Overvalued. The stock's GF Value™ is €153.10, compared to a current price of €201.40 — trading 31.5% above its estimated fair value. The current Operating Margin % is 13.38%, which is near median its 10-year median of 12.29 and 242.6% above the Retail - Cyclical industry median of 3.91. Ross Stores' overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ross Stores (FRA:RSO), the current Operating Margin % is 13.38% 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 (FRA:RSO) Overvalued in 2026?
Based on GuruFocus' analysis, Ross Stores stock appears to be overvalued.
The current stock price of €201.40 is trading 31.5% above its estimated GF Value™ of €153.10.
GuruFocus considers Ross Stores to be Significantly Overvalued.
Key valuation signals for FRA:RSO:
Operating Margin %: 13.38% (near median its 10-year median of 12.29)
GF Value™: €153.10 vs. price of €201.40 (31.5% above fair value)
Industry Position: 242.6% above the Retail - Cyclical median (#183 of 1128)
No single metric tells the full story. See the FRA:RSO 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.
90GF Score
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