Ross Stores Reports Strong Financial Performance with 7.1% Sales Growth and 16.5% Increase in Net Earnings

Ross Stores, Inc. reported strong financial performance for the three and six months ended August 3, 2024, with notable increases in sales, earnings, and profitability compared to the same periods in the previous fiscal year.

For the three months ended August 3, 2024, sales reached $5,287.5 million, a 7.1% increase from $4,934.9 million in the prior year. Similarly, sales for the six-month period totaled $10,145.6 million, up 7.6% from $9,429.6 million. The growth was primarily driven by a 4% increase in comparable store sales and the opening of 87 net new stores during the year.

Total costs and expenses for the three months ended August 3, 2024, amounted to $4,584.9 million, compared to $4,340.1 million in the same period last year. For the six months, costs rose to $8,805.9 million from $8,347.5 million. Despite the increase in costs, earnings before taxes improved to $702.6 million for the three months (up from $594.9 million) and $1,339.6 million for the six months (up from $1,082.1 million).

Net earnings for the three months ended August 3, 2024, were $527.1 million, compared to $446.3 million in the prior year, while net earnings for the six months increased to $1,015.1 million from $817.5 million. Basic earnings per share rose to $1.60 for the three months and $3.07 for the six months, compared to $1.33 and $2.42, respectively, in the previous year.

The company’s cost of goods sold as a percentage of sales decreased, reflecting improved efficiency, with 71.7% for the three months ended August 3, 2024, down from 72.3% in the prior year. Selling, general, and administrative expenses also increased, totaling $28.5 million more for the three months and $58.5 million more for the six months compared to the previous year.

As of August 3, 2024, total current assets were $7,594.9 million, with cash and cash equivalents at $4,668.1 million. The company reported total assets of $14,678.0 million and total stockholders’ equity of $5,130.5 million. The company had no borrowings under its $1.3 billion senior unsecured revolving credit facility and was in compliance with its financial covenants.

In terms of shareholder returns, Ross Stores declared a quarterly cash dividend of $0.3675 per common share on August 21, 2024, and repurchased 3.7 million shares for $525.0 million during the six months ended August 3, 2024, under a two-year stock repurchase program initiated in March 2024.

Overall, Ross Stores demonstrated robust growth and profitability in the first half of fiscal 2024, supported by strategic store openings and effective cost management.