Ross Stores(ROST)2024-12-10 22:44Sales Performance - Sales for the three-month period ended November 2, 2024, increased by 862.5 million, or 6.0%, driven by the opening of 80 net new stores and a 3% comparable store sales increase [81]. Cost of Goods Sold - The cost of goods sold for the three-month period ended November 2, 2024, increased by 490.6 million, primarily due to higher sales from new store openings [84]. - Cost of goods sold as a percentage of sales for the three-month period ended November 2, 2024, decreased by approximately 70 basis points compared to the same period in 2023, mainly due to lower buying and distribution costs [85]. Expenses - Selling, general and administrative expenses (SG&A) increased by 80.9 million for the nine-month period ended November 2, 2024, primarily due to the opening of new stores [88]. Earnings - Net earnings as a percentage of sales for the three-month period ended November 2, 2024, were 9.6%, up from 9.1% in the same period in 2023, attributed to lower cost of goods sold and SG&A expenses [94]. - Diluted earnings per share for the three-month period ended November 2, 2024, was 1.33 for the same period in 2023 [96]. - For the nine-month period ended November 2, 2024, diluted earnings per share increased to 3.74 in the prior year [96]. - The increase in diluted earnings per share for the three-month period was driven by a 9% increase in net earnings and a 2% reduction in weighted-average diluted shares outstanding due to stock repurchases [97]. Cash Flow - Net cash provided by operating activities was 1.6 billion in the same period last year [100]. - Cash used in investing activities decreased to 540.5 million in the prior year [106]. - Net cash used in financing activities increased to 1.1 billion in the same period last year, primarily due to stock repurchases [109]. - As of November 2, 2024, the company had 1.3 billion available under its Credit Facility [116]. - The company repurchased 5.5 million shares of common stock for 760 million, focusing on new store openings and improvements [108]. Inventory - Packaway inventory was 38% of total inventory as of November 2, 2024, down from 40% at the end of fiscal 2023 [105]. Leadership Changes - The company appointed James G. Conroy as the new CEO, effective February 2, 2025, succeeding Barbara Rentler [76]. Tax Rate - The effective tax rate for the three and nine-month periods ended November 2, 2024, was approximately 24%, compared to 25% for the same periods in 2023 [93].