11 Best Fashion Stocks To Buy Now

2. Ross Stores, Inc. (NASDAQ:ROST)

No. of Hedge Funds as of Q2 2024: 53

Ross Stores Inc. (NASDAQ:ROST) is a home fashion and off-price apparel chain in the US. It offers name-brand and designer in-season apparel, footwear, accessories, and home fashion for a broad audience, with 20% to 60% discounts compared to regular department and specialty stores. The company operates around 1,764 locations in 43 states across the US, Guam, and the District of Columbia.

It also operates around 345 dd’s DISCOUNTS® stores in 22 states in the US, bringing the total number of Ross stores and dd’s DISCOUNTS® stores to more than 2,109. In June and July, the company announced the opening of 21 Ross stores and three dd’s DISCOUNTS® stores across 17 states in the US. This expansion is part of the company’s plans to open around 90 new stores in fiscal 2024, divided into 75 Ross and 15 dd’s DISCOUNTS® stores.

The company’s solid and profitable model is appealing to investors. Its sales increased for the 2024 year-to-date period, going from $9.4 billion in 2023 to $10.1 billion in 2024. Comparable store sales also grew by 4% in Q2 2024, primarily because of increased basket size and improved traffic. Apart from rising sales, Ross’s improved profitability also benefited from lower incentive and distribution costs. Ross Stores Inc. (NASDAQ:ROST) is taking steps to continue these improving trends by adjusting its assortments in its newer markets to resonate with a wider customer base.

Ross Stores Inc. (NASDAQ:ROST) plans to open 47 new stores in Q3, including 43 Ross and 4 dd’s DISCOUNTS® stores. Its continuous expansion strategy gives it a major competitive edge in the industry. As of Q2 2024, 53 hedge funds hold stakes in the stock, with D E Shaw holding the largest stake worth $420.48 million. It takes the second spot on our list of the best fashion stocks to buy now.

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Ross Stores, Inc. (NASDAQ:ROST) in its fourth quarter 2023 investor letter:

“In Consumer-oriented sectors, we lean towards value-oriented or specialty retailers, franchise models, as well as premium brands. Also gaining 23% over the quarter was Ross Stores, Inc. (NASDAQ:ROST), an off-price retailer featuring apparel and home fashions. Third-quarter results were solid as sales comparisons accelerated with higher levels of customer traffic across geographies. Management raised full-year guidance. We added to the position given our increased conviction at the start of the quarter.”