The subject of this research is the analysis of the profitability of 12 leading retail companies in Bosnia and Herzegovina in the period from 2021 to 2023. The aim of the paper is to identify the key factors that positively or negatively affect the profitability of these companies. The research used panel regression analysis on a sample of 36 observations. Profitability was measured by return on assets (ROA) as the dependent variable, while the independent variables included leverage, long-term financial stability, previous profitability, and sales revenue growth rate. The results show that the observed retail companies achieved an average profitability of 5.44% in 2021, and an average ROA of 6.67% was recorded in 2023. The analysis indicates that leverage and long-term financial stability have a significant impact on profitability, while previous profitability and sales revenue growth do not show a significant impact. These findings can be useful for decision-making by management and business owners in the retail sector, as well as for other stakeholders.