ROSS STORES, INC. SEC 10-Q Report
Ross Stores, Inc., a leading off-price retailer of apparel and home fashion, has released its Form 10-Q report for the first quarter of fiscal 2025. The report highlights the company's financial performance and operational achievements, reflecting its strategic initiatives and market positioning in a competitive retail landscape.
Financial Highlights
Sales: Ross Stores reported sales of $4,985 million, marking a 2.6% increase compared to the same period last year. This growth was primarily driven by the opening of 78 net new stores.
Operating Income: The company achieved an operating income of $606 million, representing 12.2% of sales, consistent with the prior year period.
Net Earnings: Net earnings for the quarter were $479 million, a slight decrease from $488 million in the prior year, primarily due to increased costs and expenses.
Basic EPS: Basic earnings per share (EPS) increased slightly to $1.48 from $1.47 in the prior year, driven by a reduction in weighted-average shares outstanding.
Diluted EPS: Diluted EPS also saw a slight increase to $1.47 from $1.46 in the prior year, primarily due to stock repurchases under the stock repurchase program.
Business Highlights
Revenue Segments: The sales mix for the three-month periods ended May 3, 2025, and May 4, 2024, remained consistent across product categories. Home Accents and Bed and Bath accounted for 26%, Ladies for 23%, Accessories, Lingerie, Fine Jewelry, and Cosmetics for 15%, Men’s for 14%, Shoes for 13%, and Children’s for 9% of total sales.
Store Expansion: In the first quarter of fiscal 2025, Ross Stores opened 19 new stores, including 16 Ross Dress for Less and 3 dd’s DISCOUNTS locations, bringing the total to 2,205 stores. The company plans to open approximately 90 new stores in fiscal 2025.
Geographical Performance: The company operates in 44 states, the District of Columbia, and Guam. It continues to focus on expanding in existing markets and entering new geographic areas to achieve planned growth and market penetration.
Operational Strategy: Ross Stores remains committed to offering a wide assortment of quality branded bargains. The company leverages its flexible off-price business model to navigate economic uncertainties and maintain a pricing umbrella below traditional retailers.
Future Outlook: The company anticipates a decrease in operating income as a percentage of sales in the second quarter of fiscal 2025 due to lower merchandise margins from tariffs and higher distribution costs, partially offset by lower incentive compensation expenses.
New Production Launches: In May 2025, Ross Stores opened its eighth distribution center in Buckeye, Arizona, and is constructing a new distribution center in Randleman, North Carolina, to support long-term growth.
Consumer Trends: Despite prolonged inflation and fluctuating tariff levels, Ross Stores believes its merchandising and operational strategies will continue to deliver value to customers, positioning it to gain market share.
SEC Filing: ROSS STORES, INC. [ ROST ] - 10-Q - Jun. 10, 2025