Ross Stores(ROST) - 2026 Q4 - Annual Results

Financial Performance - Total sales for Q4 fiscal 2025 increased by 12% to $6.6 billion, compared to $5.9 billion in Q4 fiscal 2024[9] - Comparable store sales rose 9% in Q4, building on a solid 3% gain from the previous year[9] - Fourth quarter operating margin reached 12.3%, exceeding the company's plan of 11.5% to 11.8%[7] - Earnings per share for Q4 were $2.00, significantly above the guidance range of $1.77 to $1.85[7] - For the full fiscal year 2025, total sales reached a record $22.8 billion, an 8% increase from $21.1 billion in fiscal 2024[10] - Comparable store sales for the full year grew by 5%, following a 3% gain in fiscal 2024[10] Share Repurchase and Dividends - The company repurchased 1.5 million shares for $262 million in Q4, totaling 7.1 million shares for $1.05 billion in fiscal 2025[11] - A new two-year stock repurchase authorization of $2.55 billion was approved, representing a 21% increase over the previous program[12] - The quarterly cash dividend was increased by 10% to $0.445 per share, payable on March 31, 2026[12] - The company repurchased common stock totaling $1,050,021 during the year, compared to $1,049,979 in the previous year[22] - Dividends paid increased to $528,085, up from $488,721, indicating an increase of 8.1%[22] Guidance and Projections - Fiscal 2026 guidance projects comparable store sales growth of 3% to 4% and earnings per share between $7.02 and $7.36[14] Assets and Liabilities - Total assets increased to $15,548,737, up from $14,905,332, representing a growth of 4.3% year-over-year[20] - Total current liabilities increased to $4,827,180, up from $4,661,825, marking a rise of 3.6%[20] - Long-term debt decreased to $1,017,863 from $1,515,080, a reduction of 32.8%[20] Cash Flow and Earnings - Net earnings for the twelve months ended January 31, 2026, were $2,145,044, an increase of 2.6% compared to $2,090,730 for the previous year[22] - Net cash provided by operating activities rose to $3,026,883, a significant increase of 28.3% from $2,356,988 in the prior year[22] - Cash and cash equivalents decreased to $4,594,392 from $4,730,744, reflecting a decline of 2.9%[22] Inventory and Property - Merchandise inventory rose to $2,630,970, an increase of 7.6% from $2,444,513[20] - The company reported a gain on the sale of property of $61,575 in the previous year, which was not repeated in the current year[22]