Ross Stores’ executives said the company will raise prices and monitor the “customer impacts” in response to the tariff regime implemented by President Donald Trump.
During its Aug. 21 earnings call, Ross Stores CEO James Conroy stated that the company has been working “tirelessly” to lessen the impact of tariffs; however, Chief Operating Officer Michael Hartshorn said prices could rise.
“In some places, we’ll move along and raise prices, test it,” Hartshorn said during the call. “It really is an area-by-area decision by the merchant, but if prices go up, it gives us the flexibility to follow for sure.”
The move from the discount chain comes as other retailers and international shippers, including Shein and Temu, navigate tariffs.
Prices on imported, low-cost goods across the board could spike soon, as a trade loophole allowing some retailers to avoid Trump’s tariff hikes is set to expire on Aug. 29.
Headquartered in Dublin, California, the discount retailer operates 1,873 Ross Dress for Less locations in 44 U.S. states, Washington D.C., Guam, and Puerto Rico, as of the company’s second quarter. It also operates 360 DD’s Discounts across 22 states.
Ross to open stores despite Trump tariff pressure
Ross Stores executives announced that the company recently opened 31 new locations and plans to expand its retail presence.
“We remain on track to open a total of approximately 90 new locations this year, comprised of about 80 Ross and 10 dd’s. As usual, these numbers do not reflect our plans to close or relocate about 10 to 15 older stores,” Ross said in an email to USA TODAY on Aug. 27.
The new stores come after the company, in March, announced it opened 16 Ross Dress for Less and three DD’s Discounts stores in more than a dozen states.
For the fall season, Ross said it remains “keenly focused on offering a substantial value gap relative to the traditional retailers and are positioning our assortments to deliver high-quality, branded merchandise at compelling price points to reinforce our strong value proposition.”
Hartshorn previously said during a May earnings call that the company would raise prices in its stores to offset the increased costs it would face from tariffs.
Ross opens 19 new stores in 14 states: Company plans to open more this year
Ross sales increase as operating income dips
Ross Stores’ latest earnings report shows comparable store sales increased by 2% year-over-year during the second quarter of this year, while customer visits in stores increased by 5.8%.
“We are encouraged with the strength at the end of quarter, particularly with the early sales performance related to the back-to-school selling season,” the company said in its email.
Sales for the quarter were driven by higher traffic, coupled with “basket size,” while prices were “up slightly” in the quarter due to the mix of goods sold, according to the company.
Despite the increases, the company’s operating income dipped about 3% year-over-year due to tariff-related costs, the report shows.
“Like most companies, we are navigating the effects of tariffs,” Ross said in its email. “We were pleased to report lower-than-expected tariff-related costs for the second quarter and expect tariff costs to moderate as we move through the year.”
Contributing: James Powell, Kathryn Palmer and Mike Snider/ USA TODAY
Natalie Neysa Alund is a senior reporter for USA TODAY. Reach her at nalund@usatoday.com and follow her on X @nataliealund.
This article originally appeared on USA TODAY: Ross says it will ‘test’ raising prices amid Trump’s tariffs
