Financial Data and Key Metrics Changes - Total sales increased by 3% to $5 billion, with comparable store sales remaining flat compared to the previous year [5] - Earnings per share rose to $1.47 from $1.46, while net income decreased to $479 million from $488 million year-over-year [5] - Operating margin remained flat at 12.2% year-over-year [5][10] Business Line Data and Key Metrics Changes - The dd's discount brand continued strong momentum with solid sales and operating profits [6] - Cosmetics emerged as the strongest merchandise area during the quarter [5] Market Data and Key Metrics Changes - Geographic trends showed broad-based performance, with the Southeast region performing the best [5] - Total consolidated inventories increased by 8% year-over-year, with average store inventories up by 4% [6] Company Strategy and Development Direction - The company plans to open approximately 90 new stores in 2025, including about 80 Ross and 10 dd's discount locations [7] - The company is focused on maintaining a pricing umbrella below traditional retailers to deliver value to customers, despite expected inflationary pressures [8] - Management expressed a cautious outlook for the second half of the fiscal year due to uncertainties in consumer demand and trade policies [9] Management's Comments on Operating Environment and Future Outlook - Management noted a sequential improvement in comparable sales throughout the quarter, despite a slow start in February [9] - The company withdrew its previously provided annual guidance due to too many unknown variables affecting visibility [9] - Management emphasized the importance of a flexible business model to navigate through uncertain times [15] Other Important Information - The company repurchased 2 million shares of common stock for $263 million during the first quarter [11] - The projected earnings per share for the second quarter is in the range of $1.40 to $1.55, including a cost impact of $0.11 to $0.16 from tariffs [12] Q&A Session Summary Question: Can you elaborate on the cadence of comps and drivers of improvement? - Management noted broad-based improvement across merchandise categories, with April showing strong performance [19] Question: What strategies are in place to mitigate tariffs? - Management discussed working with vendors for better costing, careful price increases, and utilizing closeouts to mitigate tariff impacts [20] Question: How do you expect the gross margin hit from tariffs to evolve? - The second quarter impact includes costs from orders already in transit when tariffs were announced, and management is cautious about predicting the back half of the year [25][26] Question: What are your thoughts on inventory availability and sourcing? - Management believes there will be availability of closeouts, but there may be some receipt risk due to production halts in China [31][32] Question: How is the branded strategy performing? - Management is pleased with the execution of the branded strategy, which is now expected to have no further margin headwinds [52][53] Question: What are your expectations for pricing elasticity? - Management indicated that elasticity will depend on the category and is being strategic about pricing changes [58] Question: How are you planning to shift sourcing away from China? - Management acknowledged the challenges in shifting sourcing quickly but emphasized flexibility in product assortment [64][89]

Financial Data and Key Metrics Changes - Total sales increased by 3% to $5 billion, with comparable store sales remaining flat compared to the previous year [4] - Earnings per share rose to $1.47 from $1.46 last year, while net income decreased to $479 million from $488 million [4] - Operating margin was flat year over year at 12.2% [4][10] Business Line Data and Key Metrics Changes - The dd's discount brand continued strong momentum with solid sales and operating profits [5] - Cosmetics emerged as the strongest merchandise area during the quarter [4] - Average store inventories increased by 4%, aligning with company plans, while total consolidated inventories rose by 8% due to opportunistic buys [5] Market Data and Key Metrics Changes - Geographic trends showed broad-based performance, with the Southeast region performing the best [4] - The company opened 16 new Ross and three dd's discount locations in the first quarter, with plans for approximately 90 new stores this year [6] Company Strategy and Development Direction - The company plans to maintain a substantial pricing umbrella below traditional retailers to deliver value to customers [7] - Strategies are in place to gain market share while minimizing margin impact from tariffs [9] - The company is focused on providing high-quality branded merchandise at great value despite inflationary pressures [7] Management's Comments on Operating Environment and Future Outlook - Management expressed limited visibility into the second half of the fiscal year due to prolonged inflation and fluctuating tariff levels [15] - The company remains cautious and has withdrawn its previously provided annual guidance due to uncertainties in the macroeconomic environment [9] - Management highlighted the importance of a flexible off-price business model to navigate through uncertain times [15] Other Important Information - The company repurchased 2 million shares of common stock for $263 million under a $2.1 billion buyback authorization [11] - For the second quarter, comparable store sales are projected to be flat to up 3%, with earnings per share expected in the range of $1.40 to $1.55 [12] Q&A Session Summary Question: Can you elaborate on the cadence of comps and drivers of improvement? - Management noted broad-based sequential improvement across merchandise categories, with April showing strong performance [18][19] Question: What strategies are in place to mitigate tariffs? - Strategies include negotiating better costs with vendors, passing along some price increases cautiously, and utilizing closeouts and packaway merchandise [19][20] Question: How do you expect the tariff impact to change throughout the year? - The second quarter impact includes costs from orders already in transit when tariffs were announced, and future impacts will depend on macroeconomic conditions [25][26] Question: What is the outlook for inventory availability? - Management expects availability of closeouts but acknowledges potential receipt risks due to production halts in China [32] Question: How is the branded strategy performing? - The branded strategy is on track, with no expected margin headwinds going forward, particularly in the ladies' business [55] Question: What are the expectations for pricing elasticity? - Pricing elasticity will depend on the category and is influenced by broader inflationary pressures across the retail sector [60] Question: How is the cosmetics category performing? - The cosmetics category is performing well due to strong execution and a favorable brand mix [102]

Financial Performance - Earnings per share for Q1 2025 were $1.47, slightly up from $1.46 in Q1 2024, with net income at $479 million compared to $488 million last year[5] - Total sales for Q1 2025 reached $5.0 billion, with comparable store sales remaining flat year-over-year[5] - Operating margin for the first quarter was 12.2%, unchanged from the previous year[6] - Net earnings for the three months ended May 3, 2025, were $479,249, a decrease of 2% from $487,990 in the same period last year[16] Share Repurchase and Guidance - The company repurchased 2.0 million shares for $263 million under a $2.1 billion buyback program, aiming to buy back $1.05 billion in total during fiscal 2025[6] - For Q2 2025, comparable store sales are projected to be flat to up 3%, with earnings per share guidance set between $1.40 and $1.55, down from $1.59 in the prior year[8] Cost and Tariff Impact - The anticipated cost impact from tariffs is estimated to be approximately $0.11 to $0.16 per share for Q2 2025[8] Store and Asset Management - The company operates 2,205 stores at the end of Q1 2025, a decrease from 2,127 stores a year earlier[12] - Total assets as of May 3, 2025, were $14.30 billion, down from $14.49 billion a year prior[14] - Cash and cash equivalents decreased to $3.78 billion from $4.65 billion year-over-year[14] Cash Flow and Investment Activities - Net cash provided by operating activities increased to $409,715, up 11% from $368,921 year-over-year[16] - Cash used in investing activities rose to $207,378, compared to $136,249 in the prior year, reflecting increased capital expenditures[16] - Net cash used in financing activities significantly increased to $1,149,809, up from $450,033, primarily due to long-term debt payments of $700,000[16] - The total cash, cash equivalents, and restricted cash and cash equivalents at the end of the period was $3,848,990, down from $4,718,080 a year ago[16] Expense Management - Interest paid during the period was $35,939, a decrease from $40,158 in the previous year[16] - Income taxes paid (refunded), net, was $334, compared to a refund of $(375) in the same period last year[16] - Depreciation and amortization expenses increased to $115,938 from $109,186 year-over-year[16] - Stock-based compensation decreased slightly to $39,296 from $40,447 in the prior year[16] - Merchandise inventory change improved to $(225,336) from $(269,479), indicating better inventory management[16] Management Approach - The company emphasizes a conservative management approach amid heightened macroeconomic and geopolitical uncertainties[8]

Group 1 - Ross Stores is expected to announce fiscal first-quarter earnings on May 22, 2025, with analysts predicting earnings of $1.43 per share and revenue of $4.96 billion, reflecting a 3% decrease in earnings and a 2% increase in sales year-over-year [1] - The company has a market capitalization of $51 billion and reported $21 billion in revenue over the last 12 months, resulting in an operating profit of $2.6 billion and net income of $2.1 billion [2] - Ross anticipates comparable store sales to be flat to a 3% decrease for the first quarter due to cautious macroeconomic conditions, with full-year EPS expected to be between $5.95 and $6.55, slightly down from $6.32 the previous year [2] Group 2 - Historical data shows that Ross Stores' stock has risen 50% of the time after earnings announcements, with a median one-day gain of 3.6% and a maximum increase of 10% [1][4] - Over the past five years, there have been 20 earnings data points, with positive one-day returns occurring approximately 50% of the time, increasing to 73% when considering the last three years [6] - The correlation between one-day and five-day post-earnings returns can provide a less risky trading strategy, particularly if a strong correlation is identified [4][5]

Wall Street analysts forecast that Ross Stores (ROST) will report quarterly earnings of $1.43 per share in its upcoming release, pointing to a year-over-year decline of 2.1%. It is anticipated that revenues will amount to $4.97 billion, exhibiting an increase of 2.3% compared to the year-ago quarter.The current level reflects an upward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised thei ...

Core Viewpoint - Ross Stores, Inc. is anticipated to experience revenue growth while facing a decline in earnings per share for the first quarter of fiscal 2025, with earnings estimated at $1.43 per share, a decrease of 2.1% from the previous year [1][2]. Revenue and Earnings Estimates - The consensus estimate for quarterly revenues is $4.97 billion, reflecting a growth of 2.3% compared to the same quarter last year [2]. - The company has a trailing four-quarter earnings surprise average of 7.7%, with the last reported quarter showing an earnings surprise of 8.5% [2]. Earnings Prediction Model - The earnings prediction model indicates a likely earnings beat for Ross Stores, supported by a positive Earnings ESP of +1.27% and a Zacks Rank of 3 [3]. Factors Influencing Q1 Results - Strong growth across merchandise categories and positive customer responses are expected to bolster performance, particularly appealing to price-conscious consumers [4]. - The off-price retail model and micro-merchandising strategy are anticipated to attract value-focused shoppers and optimize inventory allocation [5]. Store Expansion and Market Conditions - Consistent execution of store expansion plans is expected to contribute to top-line growth, with new store contributions reflected in the upcoming results [6]. - The company remains cautious about macroeconomic uncertainties and inflation affecting consumer spending on essentials [6]. Sales and Margin Expectations - For Q1 fiscal 2025, Ross Stores anticipates comparable store sales (comps) to decline between 3% and flat, with total sales projected to decrease by 1% to increase by 3% year-over-year [7]. - Operating margin is expected to be in the range of 11.4% to 12.1%, down from 12.2% last year, with a projected operating margin of 11.7% for the quarter [7][8]. Valuation and Stock Performance - Ross Stores is trading at a forward 12-month price-to-earnings ratio of 23.13x, which is lower than the industry average of 32.49x [9]. - The stock has gained 9.5% over the past three months, outperforming the industry growth of 3.8% [10].

Ross Stores (ROST) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 22, 2025, might help the stock move higher if these key numbers are better than expect ...

Core Viewpoint - Off-price retail is gaining traction as consumers remain price-conscious in a challenging economy, with The TJX Companies, Inc. (TJX) and Ross Stores, Inc. (ROST) being the two major players in this space [1] Group 1: Company Performance - The TJX Companies has shown strong and steady performance across its diverse retail banners, reporting solid comparable store sales growth supported by increased foot traffic and higher average basket sizes [4] - Ross Stores has returned to positive same-store sales in the fourth quarter of fiscal 2024, driven by better inventory flow and fewer promotions, indicating a recovery in its core budget-conscious apparel business [7] Group 2: Geographic and Product Diversification - TJX benefits from a global footprint with operations in the U.S., Canada, Europe, and Australia, allowing for geographic diversification that helps mitigate regional economic challenges [5] - Ross Stores has a narrower focus, primarily operating in the U.S. and lacking exposure to the home goods category, which limits its growth potential in the long term [8] Group 3: Profitability and Financial Estimates - TJX has improved profitability with expanded gross and operating margins, driven by leaner inventory levels and disciplined expense management, while also returning value to shareholders through dividends and share repurchases [6] - The Zacks Consensus Estimate projects TJX's earnings per share (EPS) for fiscal 2026 at $4.43, suggesting year-over-year growth of 4%, while Ross Stores' EPS estimate is $6.42 with projected earnings growth of 1.6% for fiscal 2025 [10] Group 4: Valuation and Stock Performance - TJX trades at a forward 12-month P/E ratio of 28.83x, below the industry average of 32.64x, indicating a reasonable valuation given its strong fundamentals, while Ross Stores trades at a lower multiple of 22.95x [11] - Over the past year, TJX has delivered a 32.7% gain, significantly outperforming Ross Stores' 12.2% increase and the industry's 14% growth, highlighting TJX's superior stock performance [11] Group 5: Investment Outlook - The TJX Companies is viewed as the better investment option due to its stronger earnings momentum, diversified global presence, and superior stock performance, making it well-positioned for long-term success in the value-driven retail environment [13][14]

Ross Stores (ROST 0.27%) might get an initial boost due to tariffs, which will likely become a headwind for the business if the tariffs remain in place for longer.*Stock prices used were the afternoon prices of May 6, 2025. The video was published on May 8, 2025. ...

Ross Stores (ROST) closed the most recent trading day at $141.47, moving +0.7% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.64%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, lost 0.74%. In the context of valuation, Ross Stores is at present trading with a Forward P/E ratio of 21.93. This denotes no noticeable deviation relative to the industry's average Forward P/E of 21.93. Heading into today, shares of the discount retailer had gained 7.81% over ...