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ROSS STORES, INC. 8-K Report, Financial Results (May 22, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 22, 2025
Period End
May 22, 2025
Security
ROST
In the record · 2016–202610-K1110-Q338-K97

ROST filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 97 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’20Jul ’20
  2. Leadership change8-K · Dec ’22Dec ’22
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed May 22, 2025. Cited figures are marked; the original filing is the authoritative source.

Ross Stores reported first-quarter fiscal 2025 results (13 weeks ended May 3, 2025) that were essentially flat year over year.

Sales rose 2.6% to $4.98 billiona, but comparable store sales were flat. Operating margin held at about 12.2%, and diluted EPS edged up to $1.47 from $1.46. Net income fell 1.8% to $479 million from $488 million, and the EPS gain came from a lower share count after buybacks.

Management described a slow February that improved sharply in each later month of the quarter, and said the quarter came in at the high end of its expectations. The main investor focus is guidance. Management withdrew its annual sales and earnings outlook, citing elevated tariffs and macroeconomic and geopolitical uncertainty, and provided only second-quarter guidance.

For the quarter ending August 2, 2025, it projects flat to up 3% comparable store sales, lapping a 4% gain, and EPS of $1.40 to $1.55b, versus $1.59 a year earlier. That range includes an estimated $0.11 to $0.16 per share tariff cost. Management noted that more than half of the goods it sells originate from China, though it directly imports only a small share.

Capital allocation remains shareholder-focused. The company repurchased $263 millionc of stock (2.0 million shares) in the quarter, is on track for $1.05 billion of buybacks in fiscal 2025 under its $2.1 billion two-year program, and repaid $700 million of long-term debt. Cash fell to $3.78 billion from $4.65 billion a year earlier, and total debt fell to about $1.5 billion from about $2.5 billion.

Store count rose to 2,205 from 2,127, and capital expenditures increased about 52% to $207 milliond. Merchandise inventory grew about 8.5% year over year, which is faster than sales growth and should be monitored.

02—Key points

Key Highlights

  1. Sales rose 2.6% to $4.98 billion, but comparable store sales were flat year over year.
  2. Diluted EPS was $1.47 versus $1.46, while net income declined 1.8% to $479 million from $488 million; the EPS gain reflects a lower share count.
  3. Operating margin was about 12.2%, flat year over year, with operating income up 2.6% to $606 million.
  4. Management withdrew its full-year fiscal 2025 sales and earnings guidance, giving only Q2 outlook due to tariff and macro uncertainty.
  5. Q2 guidance: comparable store sales flat to up 3%, and EPS of $1.40 to $1.55 versus $1.59 last year, including a $0.11 to $0.16 tariff cost impact.
  6. The company repurchased $263 million of stock and remains on track for $1.05 billion of buybacks in fiscal 2025.
  7. Debt was reduced by $700 million, cash declined to $3.78 billion, and merchandise inventory rose about 8.5% year over year.

03—Questions

Frequently Asked Questions

  1. Why did Ross withdraw its full-year fiscal 2025 guidance?

    Management said that heightened inflation and evolving trade policies make the outlook highly unpredictable. Because tariff announcements have been changing frequently, it chose to provide only a second-quarter outlook and withdrew its prior annual sales and earnings guidance.

  2. How much of the company's merchandise is exposed to tariffs?

    Ross directly imports only a small portion of its merchandise, but more than half of the goods it sells originate from China. Management expects profitability pressure if elevated tariffs persist, and it estimates a $0.11 to $0.16 per share cost impact in Q2 from announced tariffs.

  3. Is the company still returning capital to shareholders?

    Yes. Ross repurchased $263 million of common stock in Q1 and expects to buy back $1.05 billion in fiscal 2025 under its two-year $2.1 billion authorization. It also paid $133 million in dividends during the quarter and repaid $700 million of long-term debt.

  4. What does the Q2 outlook imply for earnings compared with last year?

    Q2 EPS is projected at $1.40 to $1.55, compared with $1.59 in the prior-year quarter. At the midpoint of about $1.48, EPS would decline roughly 7%, with comparable store sales projected flat to up 3% against a 4% gain last year.

  5. Are there any balance sheet concerns to watch?

    Inventory grew about 8.5% year over year, outpacing the 2.6% sales increase, which could pressure margins if markdowns become necessary. Cash also declined to $3.78 billion from $4.65 billion, partly due to the debt repayment and buybacks, although total debt fell to roughly $1.5 billion from about $2.5 billion.

04—Continue

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