Ross Stores vs Target: Revenue, Profit and Business Model
Ross Stores had $22.8B of annual revenue in FY2025 and $2.1B of net income. Target had $104.8B of annual revenue in FY2025 and $3.7B of net income.
Latest financial snapshot
Ross Stores
- Latest annual revenue
- $22.8B (FY2025)
- Net income
- $2.1B
- Net margin
- 9.4%
- Revenue growth
- +6.5% a year, FY2016–FY2025
Target
- Latest annual revenue
- $104.8B (FY2025)
- Net income
- $3.7B
- Net margin
- 3.5%
- Revenue growth
- +4.5% a year, FY2016–FY2025
Financial summary
Ross Stores
Ross grew sales from $12.9 billion in fiscal 2016 to $22.8 billion in fiscal 2025, with a sharp dip to $12.5 billion in pandemic-hit fiscal 2020. Net income reached $2.1 billion in fiscal 2025. Fiscal 2026 accelerated: Q1 sales rose 21% to $6.0 billion on 17% comps, and Q2 sales rose 13% to $6.3 billion on 10% comps. Q2 net income of $851 million included about $253 million in IEEPA tariff refunds, worth roughly $0.60 per share. Ross plans to repurchase $1.275 billion of stock in fiscal 2026 under a two-year $2.55 billion authorization approved in March 2026. Ross Stores, Inc. is a major American chain of off-price department stores, commanding a market valuation typically exceeding $40 billion.
Target
Target's net sales fell from $109.120 billion in fiscal 2022 to $104.780 billion in fiscal 2025, while net earnings fell from $4.091 billion in fiscal 2024 to $3.705 billion in fiscal 2025. FY2025 operating income was $5.117 billion, a 4.9% margin; operating cash flow was $6.562 billion and capital expenditures were $3.727 billion. These are annual figures for the year ended January 31, 2026. The separate Q2 FY2026 release reports $26.539 billion of quarterly net sales, up 5.3%, with comparable sales up 3.8%. GAAP diluted EPS was $4.11, including $1.65 per share from $994 million of pretax tariff refunds. Target said EPS rose about 20% excluding those refunds. Its August outlook for FY2026 called for net-sales growth around 5% and EPS of $9.90 to $10.90, including the Q2 refund benefit; guidance is a company forecast, not a completed-year result.
Revenue and profit by year
Ross Stores
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $22.8B | $2.1B | 9.4% | +7.7% | Source |
| FY2024 | $21.1B | $2.1B | 9.9% | +3.7% | Source |
| FY2023 | $20.4B | $1.9B | 9.2% | +9.0% | Source |
| FY2022 | $18.7B | $1.5B | 8.1% | -1.2% | Source |
| FY2021 | $18.9B | $1.7B | 9.1% | +50.9% | Source |
| FY2020 | $12.5B | $85.4M | 0.7% | -21.9% | Source |
| FY2019 | $16B | $1.7B | 10.4% | +7.0% | Source |
| FY2018 | $15B | $1.6B | 10.6% | +6.0% | Source |
| FY2017 | $14.1B | $1.4B | 9.6% | +9.9% | Source |
| FY2016 | $12.9B | $1.1B | 8.7% | — | Source |
Target
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $104.8B | $3.7B | 3.5% | -1.7% | Source |
| FY2024 | $106.6B | $4.1B | 3.8% | -0.8% | Source |
| FY2023 | $107.4B | $4.1B | 3.9% | -1.6% | Source |
| FY2022 | $109.1B | $2.8B | 2.5% | +2.9% | Source |
| FY2021 | $106B | $6.9B | 6.6% | +13.3% | Source |
| FY2020 | $93.6B | $4.4B | 4.7% | +19.8% | Source |
| FY2019 | $78.1B | $3.3B | 4.2% | +3.7% | Source |
| FY2018 | $75.4B | $2.9B | 3.9% | +3.6% | Source |
| FY2017 | $72.7B | $2.9B | 4.0% | +3.5% | Source |
| FY2016 | $70.3B | $2.7B | 3.9% | — | Source |
Where the revenue comes from
Ross Stores
- Ross Dress for Less
Not formally reported
Off-price stores selling branded apparel, footwear, home goods and accessories bought from manufacturer overruns, canceled orders and closeouts.
- dd's DISCOUNTS
Not formally reported
The second store banner. Ross earns nearly all revenue from in-store merchandise sales at the two chains and does not sell merchandise online.
Target
- Stores and digital merchandise
Primary revenue source
Sales of food, essentials, apparel, beauty, home, electronics, toys and seasonal products through stores and digital channels.
- Owned brands
Strategic margin driver
Target-owned and exclusive brands that support margin and differentiation.
- Same-day services and Shipt
Growth and retention stream
Delivery, pickup, Drive Up and Target Circle 360 services that deepen loyalty.
- Roundel retail media
High-margin supplemental stream
Advertising revenue from brands using Target's retail media network.
Business model and strategy
Ross Stores
How it makes money
Ross earns nearly all revenue from in-store merchandise sales at Ross Dress for Less and dd's DISCOUNTS. More than 800 merchants buy branded apparel, footwear, home goods and accessories from manufacturer overruns, canceled orders and closeouts. Part of that buying is held as packaway inventory for later seasons.
Growth strategy
Growth comes mainly from new stores and comparable store sales. Ross raised its 2026 opening plan to 115 locations after opening 64 in the first half. Under CEO Jim Conroy, the company has added marketing, brand-forward merchandise and in-store experience changes, and management credits traffic from both new and existing customers for the 2026 comp gains.
Competitive advantage
Ross's edge is buying scale plus low operating cost. A large merchant team and long vendor relationships give it access to branded closeout goods, and lean store formats let it price 20% to 60% below department store regular prices while still earning a double-digit operating margin. Staying store-only avoids the shipping and returns cost that weighs on online sellers of low-ticket apparel.
Target
How it makes money
Target runs a general-merchandise, big-box retail model that pairs low-margin essentials (groceries, household basics) to drive store traffic with higher-margin discretionary categories (apparel, home decor, and private-label brands) to drive profit -- the classic 'basket size' strategy.
Growth strategy
Target is focusing on merchandising authority, guest experience, technology acceleration, team and community strength, stores-as-hubs, same-day fulfillment, retail media and owned-brand renewal.
Competitive advantage
Target's advantage is the mix of curated merchandise, owned brands, convenient stores, same-day fulfillment and a brand position between discount utility and design-led retail.
Questions about Ross Stores vs Target
Which company has higher revenue — Ross Stores, Inc. or Target Corporation?
Ross Stores, Inc. had $22.8B (FY2025), while Target Corporation had $104.8B (FY2025). By latest annual revenue, Target Corporation is the larger business, with Ross Stores, Inc. showing a smaller revenue base.
What is the market cap of Ross Stores, Inc. vs Target Corporation?
Ross Stores, Inc. has a market capitalisation of $73.7B. A public market cap figure for Target Corporation was not available (it may be privately held).
How does revenue per employee compare for Ross Stores, Inc. and Target Corporation?
Ross Stores, Inc. has $205k / employee in revenue per employee, while Target Corporation has $252k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Ross Stores, Inc. and Target Corporation make money?
Ross Stores, Inc. and Target Corporation generate revenue in fundamentally different ways. Ross Stores, Inc.: Ross earns nearly all revenue from in-store merchandise sales at Ross Dress for Less and dd's DISCOUNTS. Target Corporation: Target runs a general-merchandise, big-box retail model that pairs low-margin essentials (groceries, household basics) to drive store traffic with higher-margin discretionary categories (apparel, home decor, and private-label brands) to drive profit -- the classic 'basket size' strategy.
Is Ross Stores, Inc. bigger than Target Corporation?
By last reported revenue, Target Corporation ($104.8B (FY2025)) is the larger company compared to Ross Stores, Inc. ($22.8B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Ross Stores vs Target overview