On March 4, 2025, Ross Stores Inc (ROST, Financial) released its 8-K filing, reporting its financial results for the fourth quarter and fiscal year 2024. The company, known for its off-price retail model, operates over 1,750 Ross Dress for Less stores and approximately 350 DD's Discounts chains. These stores offer a wide range of brand-name merchandise at significant discounts, creating a unique shopping experience for middle and lower-income consumers.

Performance and Challenges

For the fourth quarter, Ross Stores Inc (ROST, Financial) reported earnings per share (EPS) of $1.79, exceeding the analyst estimate of $1.65. The company's net income for the quarter was $587 million, a decrease from $610 million in the previous year. Sales for the quarter reached $5.9 billion, slightly below the estimated $5,956.30 million. Sales for the quarter reached $5.9 billion. Sales for the quarter reached $5.9 billion, slightly below the estimated $5,956.30 million. Despite the positive sales growth, the company faced challenges such as planned declines in merchandise margin and unfavorable timing of packaway-related costs. These factors contributed to a flat operating margin of 12.4% compared to the previous year. The sale of a packaway facility provided a one-time benefit of approximately $0.14 per share, which helped offset some of these challenges.

Financial Achievements

For the full fiscal year 2024, Ross Stores Inc (ROST, Financial) reported an EPS of $6.32, surpassing the annual estimate of $6.19. Net earnings rose to $2.1 billion on sales of $21.1 billion, compared to $1.9 billion on sales of $20.4 billion in fiscal 2023. The company's ability to exceed annual EPS expectations highlights its resilience and effective cost management in a competitive retail environment.

Key Financial Metrics

The company's balance sheet remains robust, with $4.7 billion in cash and cash equivalents. Ross Stores Inc (ROST, Financial) repurchased 7.3 million shares for $1.05 billion during fiscal 2024, demonstrating its commitment to returning value to shareholders. Additionally, the Board of Directors authorized a 10% increase in the quarterly cash dividend to $0.405 per share.

From the income statement, the cost of goods sold for the year was $15.26 billion, and operating income reached $2.59 billion. These figures underscore the company's ability to maintain profitability despite external pressures.

Commentary and Analysis

Jim Conroy, Chief Executive Officer, commented, “Fourth quarter sales and earnings results were at the high end of our expectations. Sales benefited from customers’ positive responses to our improved assortments of quality branded bargains throughout our stores during the critical holiday selling season.”

Looking ahead, Ross Stores Inc (ROST, Financial) anticipates challenges due to unseasonable weather and macroeconomic volatility, which have impacted customer traffic. The company projects a cautious outlook for fiscal 2025, with expected EPS ranging from $5.95 to $6.55.

Conclusion

Ross Stores Inc (ROST, Financial) has demonstrated strong financial performance in fiscal 2024, exceeding annual EPS estimates despite a challenging retail environment. The company's strategic initiatives, including share repurchases and dividend increases, reflect its commitment to shareholder value. However, potential headwinds in the coming year warrant a cautious approach as the company navigates external uncertainties.

Explore the complete 8-K earnings release (here) from Ross Stores Inc for further details.