01—Abstract
Summary
Summary of the 10-K filed April 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Ross Stores, Inc. (ROST) operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS banners.
For the fiscal year ended February 3, 2024, the company reported strong sales growth of 9.0%, reaching $20.4 billiona. This growth was driven by a 5% increase in comparable store sales and the addition of 94 net new stores, alongside the benefit of a 53-week fiscal year. Net earnings increased to $1.87 billion, with diluted earnings per share rising to $5.56 from $4.38 in the prior year.
The company continues to execute its strategy of offering value and convenience, focusing on opportunistic buying and efficient operations. Management expresses confidence in continued market share gains despite ongoing macroeconomic uncertainties and expects to open approximately 90 new stores in fiscal year 2024, supported by robust operating cash flow and a strong liquidity position. The company maintained a solid financial foundation, with total assets growing to $14.3 billionb and substantial cash and cash equivalents of $4.9 billion.
Ross Stores also demonstrated a commitment to returning value to shareholders through share repurchases, totaling $950 millionc in fiscal year 2023 under its $1.9 billion program, and dividend payments of $454.8 million. A new $2.1 billion share repurchase program was approved for fiscal years 2024-2025, signaling continued confidence in the company's financial outlook and commitment to shareholder returns.
02—Key points
Key Highlights
- Total sales increased by 9.0% to $20.4 billion for fiscal year 2023.
- Comparable store sales grew by 5% year-over-year.
- Net earnings rose to $1.87 billion, and diluted EPS increased to $5.56.
- The company opened 94 net new stores, expanding its total store count to 2,109.
- Operating cash flow remained strong at $2.5 billion.
- Shareholders received $454.8 million in dividends and $950 million in share repurchases during fiscal year 2023.
- A new $2.1 billion share repurchase program was authorized through fiscal year 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Ross Stores, Inc. kept $0.09.
- Revenue$20.38B100.0%
- Cost of revenue−$14.80B72.6%
- Gross profit$5.58B27.4%
- Operating costs−$3.27B16.0%
- Operating income$2.31B11.3%
- Interest, other & tax−$433.1M2.1%
- Net income$1.87B9.2%
Where FY2024 revenue went
$20.38B- Cost of revenue: $14.80B, 73% of revenue
- SG&A: $3.27B, 16% of revenue
- Net income: $1.87B, 9.2% of revenue
- Interest, other & tax: $433.1M, 2.1% of revenue
Kept 9.2% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed April 2, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $20.38B$18.70B | +9.0% |
| Cost of Revenue | $14.80B$13.95B | +6.1% |
| Gross Profit | $5.58B$4.75B | +17.4% |
| SG&A Expenses | $3.27B$2.76B | +18.4% |
| Operating Expenses | $17.91B$16.71B | +7.2% |
| Operating Income | $2.31B$1.99B | +15.9% |
| Net Income | $1.87B$1.51B | +24.0% |
| EPS (Basic) | $5.59$4.40 | +27.0% |
| EPS (Diluted) | $5.56$4.38 | +26.9% |
| Shares Outstanding (Basic) | 335.19M343.45M | −2.4% |
| Shares Outstanding (Diluted) | 337.43M345.22M | −2.3% |
05—Questions
Frequently Asked Questions
What is the company's primary business model?
Ross Stores, Inc. operates as an off-price retailer, offering first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at significant discounts compared to department and specialty store prices. They operate two main brands: Ross Dress for Less and dd's DISCOUNTS.
How did the company perform in terms of sales and profitability in the most recent fiscal year?
For the fiscal year ended February 3, 2024, Ross Stores reported a 9.0% increase in sales to $20.4 billion. Net earnings increased to $1.87 billion, with diluted earnings per share rising to $5.56 from $4.38 in the prior year. Comparable store sales also grew by 5%.
What is the company's strategy for growth?
The company's growth strategy focuses on opening additional stores based on market penetration, local demographics, competition, and expected profitability. They also evaluate opportunistic real estate acquisitions and potential new store locations. For fiscal year 2024, they plan to open approximately 90 new stores.
How is the company returning capital to shareholders?
Ross Stores returns capital to shareholders through a combination of quarterly cash dividends and stock repurchases. In fiscal year 2023, they paid $454.8 million in dividends and repurchased $950 million of its common stock. They also have a new two-year program approved to repurchase up to $2.1 billion of common stock through fiscal year 2025.
06—Continue