Ross Stores(ROST) - 2026 Q1 - Quarterly Results

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]