Summary
Ross Stores, Inc. (ROST) reported its first quarter fiscal year 2025 results, showing a modest increase in sales of 2.6% year-over-year to $4.985 billion, driven primarily by the addition of new stores. While total sales grew, comparable store sales were flat, indicating that sales growth is largely dependent on store expansion rather than increased traffic or sales per store. Net earnings saw a slight decrease to $479.2 million, or $1.47 per diluted share, compared to $488.0 million, or $1.46 per diluted share, in the prior year's first quarter. The company is navigating a challenging macroeconomic environment characterized by inflation and evolving trade policies, which are impacting merchandise margins due to higher freight and potential tariff costs.
Financial Highlights
48 data points| Revenue | $4.98B |
| Cost of Revenue | $3.58B |
| Gross Profit | $1.40B |
| SG&A Expenses | $797.13M |
| Operating Income | $606.47M |
| Net Income | $479.25M |
| EPS (Basic) | $1.48 |
| EPS (Diluted) | $1.47 |
| Shares Outstanding (Basic) | 324.88M |
| Shares Outstanding (Diluted) | 327.00M |
Key Highlights
- 1Sales increased by 2.6% to $4.985 billion for the first quarter of fiscal 2025, primarily due to the opening of 78 net new stores since the prior year's first quarter.
- 2Comparable store sales were flat (0%) for the quarter, indicating no growth from existing store performance.
- 3Net earnings decreased slightly to $479.2 million from $487.9 million in the prior year's quarter. Diluted EPS was $1.47, a slight increase from $1.46.
- 4The company repurchased $262.5 million of common stock during the quarter under its $2.1 billion repurchase program, with $787.5 million remaining available as of May 3, 2025.
- 5Operating income as a percentage of sales remained stable at 12.2%, but the company anticipates a decrease in the second quarter due to lower merchandise margins from tariffs and higher distribution costs from a new distribution center.
- 6The company's cash and cash equivalents stood at $3.8 billion, providing a strong liquidity position, with an additional $1.3 billion available under its revolving credit facility.
- 7Planned capital expenditures for fiscal 2025 are projected to be approximately $855 million, primarily for new store openings and supply chain investments.