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Ross Stores(ROST) - 2026 Q1 - Quarterly Results
ROSTRoss Stores(ROST)2025-05-22 20:02
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Financial Performance - Earnings per share for Q1 2025 were 1.47,slightlyupfrom1.47, slightly up from 1.46 in Q1 2024, with net income at 479millioncomparedto479 million compared to 488 million last year[5] - Total sales for Q1 2025 reached 5.0billion,withcomparablestoresalesremainingflatyear−over−year[5]−Operatingmarginforthefirstquarterwas12.25.0 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 487,990inthesameperiodlastyear[16]ShareRepurchaseandGuidance−Thecompanyrepurchased2.0millionsharesfor487,990 in the same period last year[16] Share Repurchase and Guidance - The company repurchased 2.0 million shares for 263 million under a 2.1billionbuybackprogram,aimingtobuyback2.1 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 1.40and1.40 and 1.55, down from 1.59intheprioryear[8]CostandTariffImpact−Theanticipatedcostimpactfromtariffsisestimatedtobeapproximately1.59 in the prior year[8] Cost and Tariff Impact - The anticipated cost impact from tariffs is estimated to be approximately 0.11 to 0.16pershareforQ22025[8]StoreandAssetManagement−Thecompanyoperates2,205storesattheendofQ12025,adecreasefrom2,127storesayearearlier[12]−TotalassetsasofMay3,2025,were0.16 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 14.49billionayearprior[14]−Cashandcashequivalentsdecreasedto14.49 billion a year prior[14] - Cash and cash equivalents decreased to 3.78 billion from 4.65billionyear−over−year[14]CashFlowandInvestmentActivities−Netcashprovidedbyoperatingactivitiesincreasedto4.65 billion year-over-year[14] Cash Flow and Investment Activities - Net cash provided by operating activities increased to 409,715, up 11% from 368,921year−over−year[16]−Cashusedininvestingactivitiesroseto368,921 year-over-year[16] - Cash used in investing activities rose to 207,378, compared to 136,249intheprioryear,reflectingincreasedcapitalexpenditures[16]−Netcashusedinfinancingactivitiessignificantlyincreasedto136,249 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,primarilyduetolong−termdebtpaymentsof450,033, 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,downfrom3,848,990, down from 4,718,080 a year ago[16] Expense Management - Interest paid during the period was 35,939,adecreasefrom35,939, a decrease from 40,158 in the previous year[16] - Income taxes paid (refunded), net, was 334,comparedtoarefundof334, compared to a refund of (375) in the same period last year[16] - Depreciation and amortization expenses increased to 115,938from115,938 from 109,186 year-over-year[16] - Stock-based compensation decreased slightly to 39,296from39,296 from 40,447 in the prior year[16] - Merchandise inventory change improved to (225,336)from(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]