12 Best Apparel Stocks to Invest In

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

Number of Hedge Fund Holders: 62

Ross Stores, Inc. (NASDAQ:ROST) is an off-price apparel retailer that operates home fashion stores under two brands: Ross Dress for Less (Ross) and DD’s Discount. It operates over 1,764 Ross store locations in 43 US states, the District of Columbia, and Guam. The company also has over 345 DD’s Discounts stores across 22 US states. Customers can find discounted in-season designer and name-brand apparel at the company’s stores, along with footwear, accessories, and home fashion. These discounts typically vary from 20% to 60% compared to department and specialty store regular prices, giving the company a competitive market edge.

With consumers looking for discounts and deals instead of giving in to brand loyalty in the current retail environment, investors are bullish on the stock. Ross Stores, Inc. (NASDAQ:ROST) reported fiscal Q4 2024 earnings at the high end of its expectations, with sales driven by the positive responses of its customers to the improved assortments of quality branded bargains. Sales for fiscal Q4 2024 were $5.9 billion with a comparable store sales gain of 3%, on top of a 7% gain in the same period last year.

Ross Stores, Inc. (NASDAQ:ROST) reported similar positive results for the full year 2024. Its net income for fiscal 2024 rose to $2.1 billion compared to $1.9 billion last year, while total sales for the year increased to $21.1 billion, up from $20.4 billion in the prior year. These trends reflect the company’s strong operations, ranking it third on our list of the best apparel stocks to invest in.