Summary
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.
Financial Highlights
48 data points| Revenue | $21.13B |
| Cost of Revenue | $15.26B |
| Gross Profit | $5.87B |
| SG&A Expenses | $3.28B |
| Operating Income | $2.59B |
| Net Income | $2.09B |
| EPS (Basic) | $6.36 |
| EPS (Diluted) | $6.32 |
| Shares Outstanding (Basic) | 328.59M |
| Shares Outstanding (Diluted) | 330.98M |
Key Highlights
- 1Total 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.
- 2Sales for fiscal year 2024 increased by 3.7% to $21.1 billion, with comparable store sales growing by 3%.
- 3Operating 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.
- 4Diluted 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.
- 5The company repurchased $1.05 billion of its common stock in fiscal 2024, demonstrating a commitment to returning capital to shareholders.
- 6Packaway 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.
- 7Planned 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.