Summary
Ross Stores, Inc. reported a solid second quarter for fiscal year 2025, demonstrating resilience in a dynamic retail environment. Total sales increased by 5% to $5.5 billion compared to the prior year, driven by both comparable store sales growth of 2% and an increase in non-comp store sales. Diluted earnings per share were $1.56, a slight decrease from $1.59 in the same period last year, largely due to net earnings being impacted by tariff-related costs and a CEO transition, partially offset by a reduction in outstanding shares due to robust stock repurchases. The company continues its strategic store expansion, opening 31 new stores in the quarter and remaining on track to open approximately 90 new stores for the full fiscal year. While facing inflationary pressures and elevated tariffs, Ross Stores highlighted its flexible off-price business model and focus on value as key strengths for navigating the uncertain macroeconomic landscape and capturing market share. The company also reaffirmed its commitment to returning capital to shareholders through dividends and share repurchases, with $525 million remaining under its current repurchase authorization.
Financial Highlights
48 data points| Revenue | $5.53B |
| Cost of Revenue | $4.00B |
| Gross Profit | $1.53B |
| SG&A Expenses | $888.71M |
| Operating Income | $638.27M |
| Net Income | $508.00M |
| EPS (Basic) | $1.57 |
| EPS (Diluted) | $1.56 |
| Shares Outstanding (Basic) | 323.00M |
| Shares Outstanding (Diluted) | 324.80M |
Key Highlights
- 1Sales grew 5% year-over-year to $5.5 billion in the second quarter, with comparable store sales increasing by 2%.
- 2Diluted EPS was $1.56, a slight decrease from $1.59 in the prior year, impacted by tariff costs and CEO transition expenses, but bolstered by share repurchases.
- 3The company opened 31 new stores in Q2, with plans to open approximately 90 new stores for the full fiscal year, including new markets like Puerto Rico.
- 4Operating income margin decreased to 11.5% from 12.5% in the prior year, primarily due to increased cost of goods sold and SG&A expenses as a percentage of sales.
- 5Net cash provided by operating activities for the first six months was $1.1 billion, an increase from $961 million in the prior year, indicating strong operational cash generation.
- 6The company repaid $700 million of Senior Notes in April 2025, and maintained a strong liquidity position with $3.8 billion in unrestricted cash and cash equivalents.
- 7Share repurchases totaled $525 million in the first six months of fiscal 2025, demonstrating continued capital return to shareholders, with $525 million remaining authorization.