01—Abstract
Summary
Summary of the 10-K filed April 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Ross Stores, Inc. (ROST) operates a robust off-price retail model with two primary brands: Ross Dress for Less and dd's DISCOUNTS.
The company reported increased sales for fiscal year 2024, driven by comparable store sales growth and the opening of new locations. Management highlights the company's flexible business model, which they believe positions it well to navigate economic uncertainties and capitalize on opportunities to offer compelling value to consumers. Strategic priorities include maintaining a strong assortment of recognizable brands at significant discounts, localized merchandising, an engaging store experience, and disciplined real estate growth.
The company also continues to invest in its information systems and supply chain to support future growth and operational efficiency. Financially, Ross Stores demonstrated solid performance with operating income as a percentage of sales improving year-over-year. The company actively returned capital to shareholders through share repurchases and dividends, supported by strong operating cash flows.
Significant capital expenditures are planned for fiscal year 2025, primarily focused on new store development and supply chain enhancements. The company maintains a strong liquidity position with substantial cash balances and an available revolving credit facility, indicating financial stability to support its strategic initiatives and return capital to investors.
02—Key points
Key Highlights
- Total store count increased to 2,186 (1,831 Ross, 355 dd's DISCOUNTS) by February 1, 2025, with plans to open approximately 90 new stores in fiscal year 2025.
- Sales for fiscal year 2024 increased by 3.7% to $21.1 billion, with comparable store sales growing by 3%.
- Operating income as a percentage of sales improved to 12.2% in fiscal 2024, up from 11.3% in fiscal 2023, driven by lower cost of goods sold and SG&A expenses.
- Diluted earnings per share increased to $6.32 in fiscal 2024, compared to $5.56 in fiscal 2023, largely due to increased net earnings and a reduction in outstanding shares.
- The company repurchased $1.05 billion of its common stock in fiscal 2024, demonstrating a commitment to returning capital to shareholders.
- Packaway inventory accounted for approximately 41% of total inventories at the end of fiscal 2024, a slight increase from 40% in the prior year, indicating continued strategic sourcing.
- Planned capital expenditures for fiscal 2025 are projected at approximately $855 million, a significant increase from fiscal 2024, reflecting investments in new distribution centers, store improvements, and IT systems.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Ross Stores, Inc. kept $0.10.
- Revenue$21.13B100.0%
- Cost of revenue−$15.26B72.2%
- Gross profit$5.87B27.8%
- Operating costs−$3.28B15.5%
- Operating income$2.59B12.2%
- Interest, other & tax−$494.9M2.3%
- Net income$2.09B9.9%
Where FY2025 revenue went
$21.13B- Cost of revenue: $15.26B, 72% of revenue
- SG&A: $3.28B, 16% of revenue
- Net income: $2.09B, 9.9% of revenue
- Interest, other & tax: $494.9M, 2.3% of revenue
Kept 9.9% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed April 1, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $21.13B$20.38B | +3.7% |
| Cost of Revenue | $15.26B$14.80B | +3.1% |
| Gross Profit | $5.87B$5.58B | +5.3% |
| SG&A Expenses | $3.28B$3.27B | +0.5% |
| Operating Income | $2.59B$2.31B | +12.0% |
| Net Income | $2.09B$1.87B | +11.5% |
| EPS (Basic) | $6.36$5.59 | +13.8% |
| EPS (Diluted) | $6.32$5.56 | +13.7% |
| Shares Outstanding (Basic) | 328.59M335.19M | −2.0% |
| Shares Outstanding (Diluted) | 330.98M337.43M | −1.9% |
05—Questions
Frequently Asked Questions
What is Ross Stores' primary business strategy?
Ross Stores operates as an off-price retailer, offering first-quality, in-season, name-brand, and designer apparel, accessories, footwear, and home fashions at savings of 20% to 60% off department and specialty store regular prices. The strategy focuses on providing compelling value to customers through opportunistic buying, maintaining a wide assortment of recognizable brands, and delivering an efficient in-store shopping experience.
How did Ross Stores perform financially in fiscal year 2024?
In fiscal year 2024, Ross Stores reported a 3.7% increase in sales to $21.1 billion, driven by a 3% rise in comparable store sales and the opening of 77 net new stores. The company also saw an improvement in operating income as a percentage of sales to 12.2% and a rise in diluted earnings per share to $6.32. Net earnings were $2.09 billion.
What are the company's plans for store growth and capital expenditures?
Ross Stores plans to continue its expansion by opening approximately 90 new stores in fiscal year 2025. Capital expenditures for fiscal 2025 are projected to be around $855 million, an increase from the prior year, reflecting planned investments in new distribution centers, new and existing store improvements, and IT systems to support long-term growth.
How does the company manage its inventory?
Ross Stores utilizes opportunistic buying strategies, acquiring merchandise from manufacturers through overruns, cancelled orders, and close-out purchases. A significant portion of their inventory is 'packaway,' purchased to be stored and released later, typically within six months, to align with merchandise assortment plans. Packaway inventory represented about 41% of total inventories in fiscal year 2024.
06—Continue