Who Owns Ross Stores?

Ross Stores is an American discount department chain store based in Dublin, California. It operates under the name Ross Dress for Less. The modern RossDressForLess was founded in Aug 1982 by Stuart Moldaw.

However, Morris Ross opened the first Ross Department Store in 1950 in San Bruno, California. In Nov 2023, Ross Stores raised its annual earnings forecast after beating Q3 sales and profit expectations. [1]

Ross is America’s largest off-price apparel and home fashion chain. The retailer is investing in its retail network expansion. In Feb 2024, the company opened 11 Ross Dress for Less stores in 11 states. The chain focused on expanding its presence in newer markets, including Michigan and New York. As of Mar 2024, Ross had 2,127 stores in 43 states, DC, and Guam. [2]

Ross offers high-quality designer apparel, accessories, footwear, and home fashions at 20%-60% off department and specialty store prices. The chain uses an off-price-store model and a flexible purchasing strategy to acquire lower-priced merchandise.

Most department stores sign contracts with suppliers, with a clause that allows them to return unsold items to designers or manufacturers. Ross acquires returned or excess inventory at throwaway prices, allowing the company to offer value for money to customers. This strategy gives Ross an edge over rivals. [3]

One thing that differentiates Ross from competitors is its business strategy. The chain doesn’t have an e-commerce platform or sell products online, reducing its operation costs. Then, it passes the cost benefits to customers to increase their savings.

In Feb 2024, Ross announced its plans to add around 90 new stores within a year. The company set a long-term target of at least 2,900 Ross Dress for Less locations. But who owns Ross Stores? [4]

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Who is Ross Stores’ Parent Company?

Ross Dress for Less is the flagship brand and wholly owned subsidiary of Ross Stores, Inc., a public company trading on NASDAQ as ROST. Ross Stores, Inc. is part of the S&P 500, Fortune 500, and Nasdaq 100 (ROST).

In Aug 2023, the company appointed Stephen Brinkley as its new President of Operations. Brinkley will report to COO and Group President Michael Hartshorn. [5]

Ross Dress for Less isn’t the only Ross Stores, Inc. chain. The parent company also operates DD’s DISCOUNTS, offering moderately-priced apparel, accessories, footwear, and home fashions at savings of 20%-70% off department and discount store regular prices.

In Feb 2024, Ross Stores, Inc. opened seven DD’s DISCOUNTS focused on the existing markets of California, Florida, and Texas. The parent company now operates 352 DD’s DISCOUNTS in 22 states. It plans to expand DD’s retail network to 700 stores, with 15 openings for 2024. [6]

Ross Stores is committed to expanding Ross Dress for Less and DD’s DISCOUNTS. The parent company is focusing on new and existing markets to catalyze growth. In 2023, Ross Stores, Inc. opened eight DD’s DISCOUNTS along with 43 Ross Dress for Less stores across 22 states between Sep and Oct.

The company achieved its 2023 target of 97 new locations. Ross Dress for Less launched its first stores in New York and Minnesota, while DD’s expanded its footprint in California, Maryland, Tennessee, and Texas. [7]

Image Credit: the blowup

Ross Stores Ownership History

Ross Stores was founded by Morris Ross, who opened the chain’s first store in 1950 in San Bruno, California. He was the sole owner and managed everything, from buying merchandise to bookkeeping for his.

By 1958, Morris had expanded the business into a nine-unit chain. Morris sold his store to William Isackson and pivoted to real estate development. Isackson added 5 Ross department stores, expanding the chain’s market presence to 6 locations.

In 1982, investors led by Mervyn’s founder, Mervin Morris, acquired six Ross Department Stores in San Francisco. The new owners changed the chain’s format to off-price retail units and expanded it to 107 stores within three years. This move converted Ross Department Stores to Ross Dress for Less. [8]

Ross Stores went public in Aug 1985 and started trading on NASDAQ under the ROST ticker symbol. The IPO transferred the company’s ownership to the general public and institutions. In the early 1990s, Ross made strategic investments in the buying organization to strengthen its ability to acquire the best bargains.

These initiatives helped Ross increase sales and profits between 1996 and 2000. In 2004, Ross launched DD’s DISCOUNTS to offer moderate-priced products. Ross Dress for Less entered new markets in the Southeast and Mid-Atlantic in the 2000s and the Midwest in 2011. [9]

Ross Stores moved its headquarters twice from Newark to Pleasanton in 2003 and from Pleasanton to Dublin in 2014. The chain acquired a purchasing office in New York and opened two distribution centers to fuel its expansion.

In 2014, Barbara Rentler became the 25^th female CEO of a Fortune 500 company after succeeding Michael Balmuth. Ross Stores, Inc. celebrated its 40^th anniversary in 2022, with 1,693 Ross Dress for Less stores and 322 DD’s DISCOUNTS. The company employed 101,000 associates. [10]

Image Credit: Markus Winkler

Ross Stores’ Shareholder Structure

Ross Stores, Inc. is a public company listed on NASDAQ as ROST. As of Dec 2023, Ross had 351,107,087 Stock A shares with one vote. This figure includes 328,251,593 free-float shares. The company owns the remaining Stock A shares. [11]

Companies buy and sell shares of their businesses to improve stock value, raise capital, or balance their portfolio. In 2023, Ross Stores repurchased 1.9 million shares for $247 million in Q4 and 8.2 million for $950 million in the fiscal year. Its Board of Directors approved a new $2.1 billion stock repurchase authorization for 2024 and 2025. [12]

Ross Stores’ shareholder structure has 1,401 institutions. As of Dec 2023, Vanguard Group was Ross Stores’ largest institutional shareholder, with 8.59%. This stake represents 28.92 million shares. Blackrock is Ross Stores’ second-largest institutional shareholder with 7.9%, followed by Price (T.Rowe) Associates at 5.32%, State Street Corp at 4.17%, Primecap Management at 3.18%, and JP Morgan Chase at 2.57%. Other top players include FMR LLC, Geode Capital, Goldman Sachs, and Bank of America. [13]

Ross Stores’ insiders, like the CEO, COO, CFO, and Directors, own 2.1% of the company. In Apr 2024, CEO Barbara Rentler was the top insider shareholder with 360,650 shares. COO Michael Hartshorn is second with 119,962, followed by CFO Adam Orvos at 75,214, Officer Karen Fleming at 65,608, CMO Brian Morrow at 62,711, and President Michael Kobayashi at 61,657. [14]

Insiders buy and sell shares to balance their portfolios or address liquidity issues. However, analysts view insiders’ transactions as a reflection of the company’s health. In Mar 2024, DD’s DISCOUNTS President and CMO Brian Morrow sold 10,734 Ross Stores shares. The transaction was valued at $1,567,164. Morrow has sold 36,679 shares within a year, with zero stock purchases. [15]

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