Ross Stores Reports Second Quarter Earnings
Ross Stores (ROST) reported strong Q2 2024 results, with earnings per share of $1.59 on net income of $527 million, up from $1.32 EPS in Q2 2023. Total sales increased 7% to $5.3 billion, with comparable store sales up 4%. For the first half of 2024, EPS was $3.05 on net income of $1.0 billion, with sales growing to $10.1 billion. The company's operating margin improved by 115 basis points to 12.5%.
Ross Stores provided guidance for the second half of 2024, projecting comparable sales growth of 2% to 3% for both Q3 and Q4. The company updated its full-year 2024 EPS guidance to a range of $6.00 to $6.13, compared to $5.56 in 2023. Management remains cautious due to persistent economic pressures on their low-to-moderate income customers and challenging year-over-year comparisons.
Ross Stores (ROST) ha riportato risultati solidi per il secondo trimestre del 2024, con utili per azione di $1,59 su un reddito netto di $527 milioni, in aumento rispetto a $1,32 di EPS nel secondo trimestre del 2023. Le vendite totali sono aumentate del 7% a $5,3 miliardi, con un incremento del 4% nelle vendite nei negozi comparabili. Per la prima metà del 2024, l'EPS è stato di $3,05 su un reddito netto di $1,0 miliardo, con vendite che sono cresciute fino a $10,1 miliardi. Il margine operativo dell'azienda è migliorato di 115 punti base, attestandosi al 12,5%.
Ross Stores ha fornito indicazioni per la seconda metà del 2024, prevedendo una crescita delle vendite comparabili del 2% al 3% sia per il terzo che per il quarto trimestre. L'azienda ha aggiornato la stima dell'EPS per l'intero 2024 a un intervallo di $6,00 a $6,13, rispetto ai $5,56 del 2023. La direzione rimane cauta a causa delle pressioni economiche persistenti sui clienti a basso e medio reddito e delle sfide di confronto anno su anno.
Ross Stores (ROST) reportó resultados sólidos para el segundo trimestre de 2024, con ganancias por acción de $1.59 sobre un ingreso neto de $527 millones, un aumento respecto a $1.32 de EPS en el segundo trimestre de 2023. Las ventas totales aumentaron un 7% a $5.3 mil millones, con un incremento del 4% en las ventas de tiendas comparables. Para la primera mitad de 2024, el EPS fue de $3.05 sobre un ingreso neto de $1.0 mil millones, con ventas que crecieron hasta $10.1 mil millones. El margen operativo de la empresa mejoró en 115 puntos básicos al 12.5%.
Ross Stores proporcionó orientación para la segunda mitad de 2024, proyectando un crecimiento de ventas comparables del 2% al 3% para el tercer y cuarto trimestre. La empresa actualizó su guía de EPS para todo el año 2024 a un rango de $6.00 a $6.13, en comparación con $5.56 en 2023. La dirección se mantiene cautelosa debido a las presiones económicas persistentes sobre sus clientes de bajos y moderados ingresos y comparaciones desafiantes año tras año.
로스 스토어즈(Ross Stores, ROST)는 2024년 2분기 실적이 뛰어나다고 발표했습니다. 주당 수익이 $1.59로, 순이익이 $5억 2,700만 달러에 달하며, 이는 2023년 2분기 $1.32 대비 상승한 수치입니다. 총 매출이 7% 증가하여 $53억 달러에 이르렀습니다, 비교 가능 매장 판매는 4% 증가했습니다. 2024년 상반기 동안, EPS는 $3.05였으며 순이익은 $10억 달러, 매출은 $101억 달러로 성장했습니다. 회사의 운영 마진은 115베이시스 포인트 개선되어 12.5%에 이릅니다.
로스 스토어즈는 2024년 하반기에 대한 가이던스를 제공하며, 3분기와 4분기 모두 2%에서 3%의 비교 가능 판매 성장률을 예상합니다. 회사는 2024년 전체 EPS 가이던스를 $6.00에서 $6.13로 업데이트하였으며, 이는 2023년의 $5.56에 비해 증가한 수치입니다. 경영진은 저소득 및 중간 소득 고객에 대한 지속적인 경제적 압박과 해마다 비교하는 데 어려움이 있다며 신중한 태도를 보이고 있습니다.
Ross Stores (ROST) a annoncé de bons résultats pour le deuxième trimestre 2024, avec un bénéfice par action de 1,59 $ sur un revenu net de 527 millions $, en hausse par rapport à 1,32 $ EPS au deuxième trimestre 2023. Les ventes totales ont augmenté de 7 % pour atteindre 5,3 milliards $, avec des ventes en magasins comparables en hausse de 4 %. Pour le premier semestre 2024, l'EPS était de 3,05 $ sur un revenu net de 1,0 milliard $, les ventes atteignant 10,1 milliards $. La marge opérationnelle de l'entreprise s'est améliorée de 115 points de base pour atteindre 12,5 %.
Ross Stores a fourni des prévisions pour le deuxième semestre 2024, projetant une croissance des ventes comparables de 2 % à 3 % pour les troisième et quatrième trimestres. L'entreprise a mis à jour sa prévision d'EPS pour l'année 2024 à une fourchette de 6,00 $ à 6,13 $, par rapport à 5,56 $ en 2023. La direction reste prudente en raison des pressions économiques persistantes sur leurs clients à faible et moyen revenu et des comparaisons difficiles d'une année sur l'autre.
Ross Stores (ROST) hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, mit Gewinnen pro Aktie von 1,59 $ bei einem Nettogewinn von 527 Millionen $, was einem Anstieg von 1,32 $ EPS im zweiten Quartal 2023 entspricht. Der Gesamtumsatz stieg um 7 % auf 5,3 Milliarden $, während die vergleichbaren Verkaufszahlen um 4 % zunahmen. Für das erste Halbjahr 2024 betrug das EPS 3,05 $ bei einem Nettogewinn von 1,0 Milliarden $, und die Verkäufe wuchsen auf 10,1 Milliarden $. Die operative Marge des Unternehmens verbesserte sich um 115 Basispunkte auf 12,5 %.
Ross Stores gab eine Prognose für die zweite Hälfte von 2024 ab und rechnet mit einem Vergleichsumsatzwachstum von 2 % bis 3 % sowohl für das dritte als auch für das vierte Quartal. Das Unternehmen aktualisierte seine EPS-Prognose für das gesamte Jahr 2024 auf einen Bereich von 6,00 $ bis 6,13 $, verglichen mit 5,56 $ im Jahr 2023. Das Management bleibt aufgrund anhaltender wirtschaftlicher Belastungen für ihre einkommensschwachen und -moderaten Kunden sowie herausfordernder Vergleichswerte im Jahresvergleich vorsichtig.
- Q2 2024 EPS increased to $1.59 from $1.32 in Q2 2023
- Q2 2024 total sales grew 7% to $5.3 billion
- Comparable store sales up 4% in Q2 2024
- Operating margin improved by 115 basis points to 12.5%
- First half 2024 EPS rose to $3.05 from $2.41 in 2023
- Company on track to repurchase $1.05 billion in common stock during fiscal 2024
- Updated full-year 2024 EPS guidance range of $6.00 to $6.13, higher than $5.56 in 2023
- Management expects challenging year-over-year comparisons in the second half of 2024
- Cautious sales forecast due to persistent economic pressures on low-to-moderate income customers
- Lower merchandise margins partially offset profitability improvements
- Projected Q4 2024 EPS of $1.60 to $1.67, potentially lower than $1.82 in Q4 2023
Insights
Ross Stores' Q2 results show strong performance with EPS of
The company's share repurchase program of
Ross Stores' success amidst economic pressures highlights the strength of the off-price retail model. The consistent comparable store sales growth suggests effective merchandise strategies resonating with budget-conscious consumers. However, management's caution about H2 performance indicates potential headwinds.
The company's focus on providing "quality branded bargains" is crucial, as inflation continues to impact discretionary spending. This strategy could drive market share gains, especially if economic conditions worsen. Investors should monitor Ross's ability to maintain its value proposition while navigating supply chain challenges and inventory management in the coming quarters.
Ross Stores' performance underscores the resilience of off-price retail in challenging economic times. The improved profitability despite lower merchandise margins is noteworthy, indicating effective operational management. The company's ability to attract customers with stronger value offerings is a key competitive advantage.
However, the cautious outlook for H2 suggests potential challenges in maintaining growth momentum. The focus on efficiency improvements in H2 is prudent, but investors should watch for any impact on customer experience or merchandise quality. Ross's strategy of prioritizing value could position it well if consumer spending further tightens, potentially driving traffic from full-price retailers.
Provides Second Half and Updated Fiscal 2024 Guidance
For the six months ended August 3, 2024, earnings per share were
Barbara Rentler, Chief Executive Officer, commented, “Second quarter sales and earnings were above our expectations as our stronger value offerings resonated with our customers. Operating margin increased 115 basis points to
During the second quarter of fiscal 2024, a total of 1.8 million shares of common stock were repurchased for an aggregate price of
Second Half and Updated Fiscal 2024 Guidance
Looking ahead, Ms. Rentler commented, “Our low-to-moderate income customers continue to face persistently high costs on necessities, pressuring their discretionary spending. In addition, our prior year sales comparisons become more challenging during the second half of the year amidst an external environment that is uncertain and volatile. As such, we continue to maintain a cautious approach to forecasting our sales.”
Ms. Rentler continued, “For both the third and fourth quarters, we are planning comparable sales growth of
Ms. Rentler added, “Based on our first half results and second half guidance, earnings per share for the 52 weeks ending February 1, 2025 are now planned to be in the range of
Ms. Rentler concluded, “Delivering the great values that our off-price customers have come to expect from us is more important than ever, especially given the continued pressures they face from the high costs on necessities. Thus, to maximize our prospects for ongoing market share gains, we will stay laser-focused on providing our shoppers the most quality branded bargains available in the marketplace.”
The Company will host a conference call on Thursday, August 22, 2024 at 4:15 p.m. Eastern time to provide additional details concerning its second quarter results and management’s outlook for the second half and fiscal year 2024. A real-time audio webcast of the conference call will be available in the Investors section of the Company’s website, located at www.rossstores.com. An audio playback will be available at 201-612-7415, PIN #13748197 until 8:00 p.m. Eastern time on August 29, 2024, as well as on the Company’s website.
Forward-Looking Statements: This press release and the related conference call remarks contain forward-looking statements regarding, without limitation, projected sales, costs, and earnings, planned new store growth, capital expenditures, and other matters. These forward-looking statements reflect our then-current beliefs, plans, and estimates with respect to future events and our projected financial performance and operations, and they are subject to risks and uncertainties which could cause our actual results to differ materially from management’s current expectations. The words “plan,” “expect,” “target,” “anticipate,” “estimate,” “believe,” “forecast,” “projected,” “guidance,” “outlook,” “looking ahead,” and similar expressions identify forward-looking statements. Risk factors for Ross Dress for Less® (“Ross”) and dd’s DISCOUNTS® include without limitation, uncertainties arising from the macroeconomic environment, including inflation, high interest rates, housing costs, energy and fuel costs, financial and credit market conditions, recession concerns, geopolitical conditions, and public health and public safety issues that affect consumer confidence, consumer disposable income, and shopping behavior, as well as our costs; unexpected changes in the level of consumer spending on, or preferences for, apparel and home-related merchandise, which could adversely affect us; competitive pressures in the apparel and home-related merchandise retailing industry; our need to effectively manage our inventories, markdowns, and inventory shortage in order to achieve our planned gross margins; risks associated with importing and selling merchandise produced in other countries, including risks from supply chain disruption, shipping delays, and higher than expected ocean freight costs; unseasonable weather or extreme temperatures that may affect shopping patterns and consumer demand for seasonal apparel and other merchandise; our dependence on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of our buyers to anticipate consumer preferences and to purchase merchandise to enable us to offer customers a wide assortment of merchandise at competitive prices; information or data security breaches, including cyber-attacks on our transaction processing and computer information systems, which could disrupt our operations, and result in theft or unauthorized disclosure of confidential and valuable business information, such as customer, credit card, employee, or other private and valuable information that we handle in the ordinary course of our business; disruptions in our supply chain or in our information systems, including from ransomware or other cyber-attacks, that could impact our ability to process sales and to deliver product to our stores in a timely and cost-effective manner; our need to obtain acceptable new store sites with favorable consumer demographics to achieve our planned store openings; our need to expand in existing markets and enter new geographic markets in order to achieve planned growth and market penetration; consumer problems or legal issues involving the quality, safety, or authenticity of products we sell, which could harm our reputation, result in lost sales, and/or increase our costs; an adverse outcome in various legal, regulatory, or tax matters, or the adoption of new federal or state tax legislation that increases tax rates or adds new taxes, that could increase our costs; damage to our corporate reputation or brands that could adversely affect our sales and operating results; our need to continually attract, train, and retain associates with the retail talent necessary to execute our off-price retail strategies; our need to effectively advertise and market our business; changes in
About Ross Stores, Inc.
Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in
Ross Stores, Inc. | |||||||||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
( |
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | |||||||||||||
Sales | $ |
5,287,519 |
|
$ |
4,934,905 |
|
$ |
10,145,586 |
|
$ |
9,429,591 |
|
|||||
Costs and Expenses | |||||||||||||||||
Cost of goods sold |
|
3,791,929 |
|
|
3,569,367 |
|
|
7,282,601 |
|
|
6,861,973 |
|
|||||
Selling, general and administrative |
|
836,357 |
|
|
807,898 |
|
|
1,612,639 |
|
|
1,554,120 |
|
|||||
Interest income, net |
|
(43,350 |
) |
|
(37,214 |
) |
|
(89,300 |
) |
|
(68,611 |
) |
|||||
Total costs and expenses |
|
4,584,936 |
|
|
4,340,051 |
|
|
8,805,940 |
|
|
8,347,482 |
|
|||||
Earnings before taxes |
|
702,583 |
|
|
594,854 |
|
|
1,339,646 |
|
|
1,082,109 |
|
|||||
Provision for taxes on earnings |
|
175,435 |
|
|
148,535 |
|
|
324,508 |
|
|
264,599 |
|
|||||
Net earnings | $ |
527,148 |
|
$ |
446,319 |
|
$ |
1,015,138 |
|
$ |
817,510 |
|
|||||
Earnings per share | |||||||||||||||||
Basic | $ |
1.60 |
|
$ |
1.33 |
|
$ |
3.07 |
|
$ |
2.42 |
|
|||||
Diluted | $ |
1.59 |
|
$ |
1.32 |
|
$ |
3.05 |
|
$ |
2.41 |
|
|||||
Weighted-average shares outstanding (000) | |||||||||||||||||
Basic |
|
329,392 |
|
|
336,231 |
|
|
330,325 |
|
|
337,140 |
|
|||||
Diluted |
|
331,511 |
|
|
337,932 |
|
|
332,620 |
|
|
339,003 |
|
|||||
Store count at end of period |
|
2,148 |
|
|
2,061 |
|
|
2,148 |
|
|
2,061 |
|
|||||
Ross Stores, Inc. |
||||||
Condensed Consolidated Balance Sheets |
||||||
( |
August 3, 2024 | July 29, 2023 | ||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ |
4,668,137 |
$ |
4,583,606 |
||
Accounts receivable |
|
181,918 |
|
175,410 |
||
Merchandise inventory |
|
2,490,558 |
|
2,300,063 |
||
Prepaid expenses and other |
|
254,370 |
|
214,673 |
||
Total current assets |
|
7,594,983 |
|
7,273,752 |
||
Property and equipment, net |
|
3,583,535 |
|
3,310,605 |
||
Operating lease assets |
|
3,234,180 |
|
3,164,685 |
||
Other long-term assets |
|
265,323 |
|
238,260 |
||
Total assets | $ |
14,678,021 |
$ |
13,987,302 |
||
Liabilities and Stockholders’ Equity | ||||||
Current Liabilities | ||||||
Accounts payable | $ |
2,217,227 |
$ |
2,150,999 |
||
Accrued expenses and other |
|
639,703 |
|
689,866 |
||
Current operating lease liabilities |
|
691,036 |
|
668,028 |
||
Accrued payroll and benefits |
|
353,980 |
|
435,300 |
||
Income taxes payable |
|
23,266 |
|
25,449 |
||
Current portion of long-term debt |
|
949,028 |
|
— |
||
Total current liabilities |
|
4,874,240 |
|
3,969,642 |
||
Long-term debt |
|
1,513,826 |
|
2,458,615 |
||
Non-current operating lease liabilities |
|
2,710,239 |
|
2,653,632 |
||
Other long-term liabilities |
|
254,487 |
|
231,945 |
||
Deferred income taxes |
|
194,697 |
|
218,726 |
||
Commitments and contingencies | ||||||
Stockholders’ Equity |
|
5,130,532 |
|
4,454,742 |
||
Total liabilities and stockholders’ equity | $ |
14,678,021 |
$ |
13,987,302 |
||
Ross Stores, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
Six Months Ended | ||||||||
( |
August 3, 2024 | July 29, 2023 | ||||||
Cash Flows From Operating Activities | ||||||||
Net earnings | $ |
1,015,138 |
|
$ |
817,510 |
|
||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
217,781 |
|
|
197,924 |
|
||
Stock-based compensation |
|
78,468 |
|
|
72,492 |
|
||
Deferred income taxes |
|
(1,541 |
) |
|
1,667 |
|
||
Change in assets and liabilities: | ||||||||
Merchandise inventory |
|
(298,338 |
) |
|
(276,568 |
) |
||
Other current assets |
|
(81,363 |
) |
|
(60,431 |
) |
||
Accounts payable |
|
271,582 |
|
|
144,775 |
|
||
Other current liabilities |
|
(197,585 |
) |
|
235,490 |
|
||
Income taxes |
|
(46,708 |
) |
|
(24,152 |
) |
||
Operating lease assets and liabilities, net |
|
6,962 |
|
|
5,172 |
|
||
Other long-term, net |
|
(3,354 |
) |
|
2,402 |
|
||
Net cash provided by operating activities |
|
961,042 |
|
|
1,116,281 |
|
||
Cash Flows From Investing Activities | ||||||||
Additions to property and equipment |
|
(333,735 |
) |
|
(363,459 |
) |
||
Net cash used in investing activities |
|
(333,735 |
) |
|
(363,459 |
) |
||
Cash Flows From Financing Activities | ||||||||
Issuance of common stock related to stock plans |
|
12,418 |
|
|
12,358 |
|
||
Treasury stock purchased |
|
(71,728 |
) |
|
(38,435 |
) |
||
Repurchase of common stock |
|
(524,979 |
) |
|
(464,890 |
) |
||
Dividends paid |
|
(245,751 |
) |
|
(228,799 |
) |
||
Net cash used in financing activities |
|
(830,040 |
) |
|
(719,766 |
) |
||
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents |
|
(202,733 |
) |
|
33,056 |
|
||
Cash, cash equivalents, and restricted cash and cash equivalents: | ||||||||
Beginning of period |
|
4,935,441 |
|
|
4,612,241 |
|
||
End of period | $ |
4,732,708 |
|
$ |
4,645,297 |
|
||
Reconciliations: | ||||||||
Cash and cash equivalents | $ |
4,668,137 |
|
$ |
4,583,606 |
|
||
Restricted cash and cash equivalents included in prepaid expenses and other |
|
14,851 |
|
|
12,955 |
|
||
Restricted cash and cash equivalents included in other long-term assets |
|
49,720 |
|
|
48,736 |
|
||
Total cash, cash equivalents, and restricted cash and cash equivalents: | $ |
4,732,708 |
|
$ |
4,645,297 |
|
||
Supplemental Cash Flow Disclosures | ||||||||
Interest paid | $ |
40,158 |
|
$ |
40,158 |
|
||
Income taxes paid, net | $ |
372,756 |
|
$ |
287,084 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240822924570/en/
Adam Orvos
Executive Vice President,
Chief Financial Officer
(925) 965-4550
Connie Kao
Group Vice President, Investor Relations
(925) 965-4668
connie.kao@ros.com
Source: Ross Stores, Inc.
FAQ
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