Ross Stores (ROST) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ROST crossed above the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.Similar ...

Core Insights - Ross Stores reported revenue of $5.29 billion for the quarter ended July 2024, reflecting a year-over-year increase of 7.2% [1] - Earnings per share (EPS) for the quarter was $1.59, up from $1.32 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $5.25 billion by 0.73%, while the EPS surpassed the consensus estimate of $1.49 by 6.71% [1] Performance Metrics - Comparable store sales increased by 4% year-over-year, outperforming the average estimate of 2.7% from six analysts [3] - The store count at the end of the period was 2,148, slightly below the average estimate of 2,151 from four analysts [4] - The number of stores opened during the quarter was 21, which was lower than the average estimate of 24 from three analysts [5] Stock Performance - Over the past month, shares of Ross Stores have returned +6.5%, compared to a +2.9% change in the Zacks S&P 500 composite [5] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [5]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The company reported strong Q2 and H1 fiscal 2024 sales and net earnings growth, maintaining a robust balance sheet [Condensed Consolidated Statements of Earnings](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Consolidated Earnings Summary (in thousands, except per share data) | Metric | Three Months Ended Aug 3, 2024 ($ thousands) | Three Months Ended Jul 29, 2023 ($ thousands) | Six Months Ended Aug 3, 2024 ($ thousands) | Six Months Ended Jul 29, 2023 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | **Sales** | **$5,287,519** | **$4,934,905** | **$10,145,586** | **$9,429,591** | | Earnings before taxes | $702,583 | $594,854 | $1,339,646 | $1,082,109 | | **Net earnings** | **$527,148** | **$446,319** | **$1,015,138** | **$817,510** | | **Diluted EPS** | **$1.59** | **$1.32** | **$3.05** | **$2.41** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | August 3, 2024 ($ thousands) | February 3, 2024 ($ thousands) | July 29, 2023 ($ thousands) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $4,668,137 | $4,872,446 | $4,583,606 | | Merchandise inventory | $2,490,558 | $2,192,220 | $2,300,063 | | **Total current assets** | **$7,594,983** | **$7,398,138** | **$7,273,752** | | **Total assets** | **$14,678,021** | **$14,300,109** | **$13,987,302** | | **Liabilities & Equity** | | | | | Accounts payable | $2,217,227 | $1,955,850 | $2,150,999 | | Long-term debt | $1,513,826 | $2,211,017 | $2,458,615 | | **Total liabilities** | **$9,547,489** | **$9,428,783** | **$9,532,560** | | **Total stockholders' equity** | **$5,130,532** | **$4,871,326** | **$4,454,742** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended (in thousands) | Cash Flow Activity | August 3, 2024 ($ thousands) | July 29, 2023 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $961,042 | $1,116,281 | | Net cash used in investing activities | ($333,735) | ($363,459) | | Net cash used in financing activities | ($830,040) | ($719,766) | | **Net (decrease) increase in cash** | **($202,733)** | **$33,056** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Sales Mix by Merchandise Category | Category | Six Months Ended Aug 3, 2024 | Six Months Ended Jul 29, 2023 | | :--- | :--- | :--- | | Home Accents and Bed and Bath | 25% | 25% | | Ladies | 23% | 24% | | Men's | 16% | 15% | | Accessories, Lingerie, etc. | 14% | 15% | | Shoes | 13% | 13% | | Children's | 9% | 8% | - The company facilitates a voluntary supply chain finance program, with **$182.5 million** owed to financial institutions as of August 3, 2024[40](index=40&type=chunk)[41](index=41&type=chunk) - In March 2024, the Board approved a new two-year, **$2.1 billion** stock repurchase program, with **3.7 million shares** repurchased for **$525.0 million** in the first six months of 2024[37](index=37&type=chunk) - The effective tax rate for the six-month period ended August 3, 2024, was approximately **24%**, consistent with the prior year period[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 performance to sales growth and improved operating margin, maintaining robust liquidity and strategic capital investments [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Key Performance Indicators | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Sales growth | 7.1% | 7.7% | 7.6% | 5.8% | | Comparable store sales growth | 4% | 5% | 3% | 3% | | Cost of goods sold (% of sales) | 71.7% | 72.3% | 71.8% | 72.8% | | SG&A (% of sales) | 15.8% | 16.4% | 15.9% | 16.5% | | Net earnings (% of sales) | 10.0% | 9.0% | 10.0% | 8.7% | - Cost of goods sold as a percentage of sales decreased by **60 basis points** in Q2 2024, driven by lower distribution costs (**70 bps**), buying costs (**55 bps**), and domestic freight (**15 bps**), partially offset by an **80 basis point decrease** in merchandise margin[87](index=87&type=chunk) - SG&A as a percentage of sales decreased by **55 basis points** in Q2 2024, primarily due to higher sales and lower incentive compensation expense[89](index=89&type=chunk) - The company opened **24 net new stores** in Q2 2024 and is on track to open approximately **90 new stores** for the full fiscal year, ending the quarter with **2,148 total stores**[81](index=81&type=chunk)[82](index=82&type=chunk) - The **$0.27 increase** in Q2 diluted EPS to **$1.59** was driven by an **18% increase** in net earnings and a **2% reduction** in weighted-average shares outstanding from stock repurchases[93](index=93&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=19&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) - Cash provided by operating activities decreased to **$961.0 million** for the first six months of 2024 from **$1.1 billion** in the prior year, mainly due to higher incentive compensation payments and lower accounts payable leverage[96](index=96&type=chunk) - Capital expenditures for fiscal 2024 are projected to be approximately **$780 million**, primarily for supply chain investments, new stores, and IT systems[101](index=101&type=chunk) - During the first six months of 2024, the company repurchased **3.7 million shares** for **$525.0 million** under its new **$2.1 billion** repurchase program[104](index=104&type=chunk) - The company ended the second quarter with **$4.7 billion** in unrestricted cash balances and **$1.3 billion** available under its credit facility, considered adequate for the next 12 months[107](index=107&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on cash balances, with fixed-rate debt and no material impact expected - The company's primary market risk is from changes in interest rates affecting interest income on cash, cash equivalents, and restricted cash[114](index=114&type=chunk)[115](index=115&type=chunk) - There were no borrowings outstanding under the variable-rate Credit Facility as of August 3, 2024, and all outstanding Senior Notes carry fixed interest rates[114](index=114&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal financial reporting controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of August 3, 2024[116](index=116&type=chunk) - No changes in internal control over financial reporting occurred during the second fiscal quarter of 2024 that materially affected or are likely to materially affect these controls[118](index=118&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, primarily wage and hour lawsuits, with no material financial impact expected - The company is party to various legal proceedings, including class action lawsuits in California related to wage and hour laws[37](index=37&type=chunk)[120](index=120&type=chunk) - Management does not expect the resolution of currently pending litigation to have a material adverse effect on the company's financial condition or results of operations[39](index=39&type=chunk) [Item 1A. Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K - The report refers to the risk factors detailed in the Annual Report on Form 10-K for the fiscal year ended February 3, 2024, indicating no material changes[121](index=121&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1.8 million shares in Q2 2024 under its new $2.1 billion program, with $1.575 billion remaining Share Repurchases in Q2 2024 | Period | Total Shares Purchased | Average Price Paid ($) | Value of Shares Remaining for Repurchase ($ thousands) | | :--- | :--- | :--- | :--- | | May 2024 | 481,660 | $135.01 | $1,773,050 | | June 2024 | 732,033 | $145.64 | $1,667,130 | | July 2024 | 634,821 | $145.09 | $1,575,020 | | **Total Q2** | **1,848,514** | **$142.68** | **$1,575,020** | - In March 2024, the Board of Directors approved a new two-year program to repurchase up to **$2.1 billion** of common stock through January 31, 2026[123](index=123&type=chunk) [Item 6. Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files - The report includes standard exhibits such as CEO/CFO certifications under Sarbanes-Oxley Sections 302(a) and 1350, and Inline XBRL documents[125](index=125&type=chunk)

With solid trailing results and inspiring profitability guidance, the company delivered a satisfying quarterly-earnings report.Ross Stores (ROST 1.76%) was a post-earnings winner of a stock on Friday after posting its second-quarter results following market hours Thursday. Clearly satisfied with the news, investors bid the discount retailer's shares up by nearly 2%. This was just enough to edge past the gain of the lively S&P 500 index that day.A double beat in the second quarterRoss's total sales amounted ...

Ross Stores, Inc. ROST shares are trading higher on Friday.Yesterday, the company reported better-than-expected second-quarter financial results and raised its outlook.Ross Stores expects third-quarter earnings of between $1.35 and $1.41 per share, versus the $1.38 per share estimate, and earnings of between $1.60 and $1.67 per share for the fourth quarter.Analysts covering the retail behemoth provided their takes:JP Morgan analyst Matthew R. Boss reiterated the Overweight rating on the stock, raising the p ...

Ross Stores, Inc. (ROST) reported strong results for the second quarter of 2024, with both its top and bottom lines showing year-over-year growth and surpassing the Zacks Consensus Estimate. The strong results can be attributed to its focus on offering stronger value propositions to customers. Despite better-than-expected results, Ross Stores has provided cautious guidance for the second half of 2024.Let’s Delve Deeper into ROST’s Q2 PerformanceRoss Stores, the leading off-price apparel retailer, delivered ...

Key TakeawaysRoss Stores raised its fiscal 2024 profit outlook and beat analysts' second-quarter top- and bottom-line expectations.Q2 sales rose 7% year-over-year and EPS jumped 20%.CEO Barbara Rentler said the company is being cautious with its guidance given the economic challenges faced by its customer base. Ross Stores (ROST) shares rose Friday, a day after the discount clothing retailer raised its full-year profit outlook but acknowledged a challenging consumer spending environment. The company now exp ...

Ross Stores TodayROSTRoss Stores$152.52 -1.43 (-0.93%) 52-Week Range$108.35▼$157.85Dividend Yield0.96%P/E Ratio25.72Price Target$161.13Add to WatchlistUnsurprisingly, off-price retailers like Ross Stores NASDAQ: ROST and TJX Companies NYSE: TJX outperform. The off-price retail segment is well-positioned after years of economic turmoil, including supply chain logjams, high inflation, high interest rates, and the ensuing inventory bloat seen among apparel manufacturers and major retailers. Today, consumers ar ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page. Considering buying ROST stock? Here’s what analysts think: ...

Core Insights - Ross Stores reported earnings per share (EPS) of $1.59, exceeding the analyst estimate of $1.50 [1] - The company achieved revenue of $5.29 billion, which is 0.72% higher than the analyst estimate of $5.25 billion [1] Financial Performance - EPS of $1.59 reported for Q2 2024, surpassing expectations [1] - Revenue of $5.29 billion reported, slightly above analyst forecasts [1]