10-KPeriod: FY2024

ROSS STORES, INC. Annual Report, Year Ended Feb 3, 2024

Filed April 2, 2024For Securities:ROST

Summary

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 billion. 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 billion 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 million 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.

Financial Highlights

49 data points
Beta

Revenue

$20.38B

27.4% Gross Margin

Net Income

$1.87B

9.2% Net Margin

EPS (Diluted)

$5.56

Total Assets

$14.30B

Cash & Equivalents

$4.94B

Free Cash Flow

$1.75B

Financial Statements
Beta
Revenue$20.38B
Cost of Revenue$14.80B
Gross Profit$5.58B
SG&A Expenses$3.27B
Operating Expenses$17.91B
Operating Income$2.31B
Net Income$1.87B
EPS (Basic)$5.59
EPS (Diluted)$5.56
Shares Outstanding (Basic)335.19M
Shares Outstanding (Diluted)337.43M

Key Highlights

  • 1Total sales increased by 9.0% to $20.4 billion for fiscal year 2023.
  • 2Comparable store sales grew by 5% year-over-year.
  • 3Net earnings rose to $1.87 billion, and diluted EPS increased to $5.56.
  • 4The company opened 94 net new stores, expanding its total store count to 2,109.
  • 5Operating cash flow remained strong at $2.5 billion.
  • 6Shareholders received $454.8 million in dividends and $950 million in share repurchases during fiscal year 2023.
  • 7A new $2.1 billion share repurchase program was authorized through fiscal year 2025.

Frequently Asked Questions

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.

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%.

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.

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.