Financial Data and Key Metrics - Q4 2022 earnings per share were $1.31 on net income of $447 million, compared to $1.04 on net earnings of $367 million in Q4 2021 [4] - Q4 2022 sales were $5.2 billion with comparable store sales up 1% on top of a 9% increase in the same period in 2021 [5] - Fiscal 2022 earnings per share were $4.38 on net income of $1.5 billion, compared to $4.87 per share on net earnings of $1.7 billion in 2021 [5] - Fiscal 2022 sales were $18.7 billion, with comparable store sales down 4% versus a 13% increase in the prior year [5] - Q4 2022 operating margin was 10.7%, up from 9.8% in 2021, driven by lower freight and incentive costs [5] Business Line Performance - Shoes were the best-performing merchandise area during the holiday selling season, while Florida was the strongest region [6] - dd's DISCOUNTS sales trends improved compared to the prior quarter but continue to trail Ross' results due to inflationary pressures impacting lower-income customers [6] - Inventory levels moderated significantly, with consolidated inventories down 11% versus last year, and packaway merchandise represented 40% of total inventories [6] Market Performance - Florida was the strongest market, with California performing slightly above the chain average and Texas tracking in line with the chain average [34] Company Strategy and Industry Competition - The company repurchased 2.1 million shares in Q4 and 10.3 million shares for the fiscal year, totaling $231 million and $950 million, respectively, under a $1.9 billion program [7] - The Board increased the quarterly cash dividend by 8% to $0.335 per share [7] - The company plans to open approximately 100 new locations in 2023, consisting of 75 Ross and 25 dd's DISCOUNTS stores [12] - The company is focusing on controlling inventory and operating expenses to maximize sales and profit growth [16] Management Commentary on Operating Environment and Future Outlook - The macroeconomic and geopolitical environments remain highly uncertain, leading to a conservative business plan [10] - For fiscal 2023, the company expects comparable store sales to be relatively flat, with earnings per share in the range of $4.65 to $4.95 [11] - The company anticipates total sales growth of 2% to 5% for the 53-week fiscal year ending February 3, 2024 [11] - Operating margin for 2023 is expected to be in the range of 10.3% to 10.7%, reflecting higher wages, flattish same-store sales, and lower freight costs [12] Other Important Information - Capital expenditures for 2023 are planned to be approximately $810 million, with investments in stores, supply chain, and merchant processes [13] - The company expects net interest income of $115 million and a tax rate of 24% to 25% for 2023 [12] - For Q1 2023, the company expects earnings per share of $0.99 to $1.05, with total sales planned to grow 1% to 4% [14] Q&A Session Summary Question: Freight recovery and future opportunities [17] - Q1 and fiscal 2023 will benefit from lower ocean freight costs, though they will still be higher than pre-pandemic levels [18] - Domestic freight costs will also improve but not as significantly as ocean freight [18] Question: Traffic trends and customer behavior [20] - Traffic was relatively flat in Q4, and the company is taking a conservative stance due to inflation and macroeconomic uncertainty [21] Question: Gross margin and merchandise margin [22] - Long-term margin improvements depend on sustained sales growth and easing inflationary costs, with ocean freight costs expected to drop significantly in 2023 [23][24] Question: Competitive backdrop and market share [26] - The company sees opportunities to grow market share by focusing on value and leveraging the favorable buying environment [27][28] Question: Trade-down customers and comp drivers [30] - No material shift in spending trends across income demographics, with the focus on delivering value to drive traffic and basket size [31] Question: Merchandise margin and markdowns [36] - Merchandise margin will benefit from lower ocean freight costs, with markdowns dependent on sales performance [39][40] Question: Market share opportunities [42] - The company is focused on correcting internal assortment issues and leveraging the favorable buying environment to drive sales and market share [43][44] Question: Cost efficiency levers [46] - The company is investing in technology and automation to improve efficiency in distribution centers and stores [47] Question: Buying environment [49] - The buying environment is very favorable, with broad-based merchandise availability across all classifications [50][51] Question: Packaway timing and shrink [53] - Packaway inventory is at 40%, with the company feeling confident about the quality and value of the merchandise [54] - Shrink was slightly higher this year, with ongoing investments in security measures [56] Question: Tax refunds and demographic performance [60] - Tax refunds could impact the dd's business, but no material shift in spending across income demographics has been observed [61] Question: Value optimization and markdowns [63] - The company is focused on delivering the best value to customers, with slightly higher markdowns in Q4 to clear inventory [64][67] Question: Real estate opportunities [69] - Retail bankruptcies like Bed Bath & Beyond and Party City provide opportunities for new store locations, but the 2023 outlook remains unchanged [70] Question: Category mix and opportunities [71] - Home and gifting performed well, with shoes being a strong category, and the company is focused on balancing the category mix to meet customer demand [72][73] Question: AUR and interest income [75] - AUR has been relatively flat, with interest income driven by higher rates on government-backed securities [76][77] Question: Wage impact on EBIT margin [79] - Wage pressures are driven by statutory minimum wage increases, with the company taking a market-by-market approach to staffing [80] Question: Q1 trends and comp guidance [82] - The company does not comment on inter-quarter trends, but the focus remains on delivering value to drive traffic and basket size [83] Question: Gross margin and markdowns [84] - Markdown levels will depend on sales performance, with the biggest driver of merchandise margin being lower ocean freight costs [86] Question: Long-term comp algorithm [88] - The company remains committed to its long-term algorithm of 3% to 4% comp growth, with margin sensitivity to comps remaining consistent [89] Question: Shoe performance and CapEx [90] - The shoe business is broad-based, with athletic shoes performing slightly better, and CapEx is focused on new stores, distribution centers, and technology investments [92][93]

Ross Stores, Inc. (NASDAQ:ROST) Q3 2022 Earnings Conference Call November 17, 2022 4:15 PM ET Company Participants Barbara Rentler - Chief Executive Officer Michael Hartshorn - Group President and Chief Operating Officer Adam Orvos - Executive Vice President and Chief Financial Officer Connie Kao - Group Vice President, Investor Relations Conference Call Participants Matthew Boss - JPMorgan Mark Altschwager - Robert W. Baird Lorraine Hutchinson - Bank of America Chuck Grom - Gordon Haskett Paul Lejuez - Cit ...

Ross Stores, Inc. (NASDAQ:ROST) Q2 2022 Results Conference Call August 18, 2022 4:15 PM ET Company Participants Barbara Rentler - CEO Michael Hartshorn - Group President and COO Adam Orvos - EVP and CFO Connie Kao - Group VP and IR Conference Call Participants Lorraine Hutchinson - Bank of America Paul Lejuez - Citigroup Kimberly Greenberger - Morgan Stanley Chuck Grom - Gordon Haskett Matthew Boss - JPMorgan Adrienne Yih - Barclays Mark Altschwager - Baird Brook Roach - Goldman Sachs Michael Binetti - Cred ...

Ross Stores, Inc. (NASDAQ:ROST) Q1 2022 Results Conference Call May 19, 2022 4:30 PM ET Company Participants Barbara Rentler - CEO Michael Hartshorn - Group President and COO Adam Orvos - EVP and CFO Connie Kao - Group VP and IR Conference Call Participants Kimberly Greenberger - Morgan Stanley Mark Altschwager - Baird Lorraine Hutchinson - Bank of America Matthew Boss - JPMorgan Michael Binetti - Credit Suisse Chuck Grom - Gordon Haskett Ike Boruchow - Wells Fargo Simeon Siegel - BMO Capital Markets Adrien ...

Ross Stores, Inc. (NASDAQ:ROST) Q4 2021 Earnings Conference Call March 1, 2022 4:15 PM ET Company Participants Barbara Rentler - Chief Executive Officer Adam Orvos - Executive Vice President & Chief Financial Officer Michael Hartshorn - Group President & Chief Operating Officer Conference Call Participants Kimberly Greenberger - Morgan Stanley Mark Altschwager - Baird Matthew Boss - JPMorgan Chuck Grom - Gordon Haskett Lorraine Hutchinson - Bank of America Michael Binetti - Credit Suisse Marni Shapiro - Ret ...