- Second Quarter EPS: Ross Stores reported Earnings Per Share (EPS) of $1.59, beating estimates of $1.49 and up from $1.32 year-over-year (y/y).
- Sales Performance: The company achieved sales of $5.29 billion, a 7.1% increase y/y, surpassing the estimate of $5.25 billion.
- Store Count: Total locations increased to 2,148, slightly below the estimate of 2,149, representing a 1% quarter-over-quarter (q/q) growth.
- Inventory Levels: Merchandise inventories stood at $2.49 billion, an 8.3% increase y/y, aligning with the estimated value.
- Earnings Guidance: Ross Stores projects third-quarter EPS to be between $1.35 to $1.41 compared to $1.33 last year. Fourth-quarter EPS is expected to range from $1.60 to $1.67, lower than the $1.82 reported in 2023.
- Profitability Improvements: Improved profitability was driven by higher sales and lower distribution and incentive costs, partially offset by lower merchandise margins.
- Full-Year Forecast: The company now plans full-year EPS for the 52 weeks ending February 1, 2025, to be in the range of $6.00 to $6.13, up from $5.56 last year.
- Customer Value Focus: The emphasis on delivering great value to customers is highlighted as crucial, especially amidst ongoing high costs of necessities.
- Analyst Ratings: The stock has 17 buy ratings, 4 hold ratings, and 1 sell rating.
Ross Stores Inc on Smartkarma
Recent analyst coverage on Ross Stores Inc by Baptista Research on Smartkarma reveals a positive outlook on the company’s performance. In the report titled “Ross Stores Inc.: A Robust Value Offering Serving a Broader Customer Base! – Major Drivers,” it was highlighted that Ross Stores’ first quarter report for 2024 showed a mixed picture. Although there were challenges, the company managed to meet its Q1 sales guidance and exceed its earnings expectations, with total sales growing by 8% to $4.9 billion.
Furthermore, in the report “Ross Stores: A Tale Of Strategic Category Expansion & Improved Customer Attraction! – Key Drivers,” Baptista Research emphasized the strong fourth quarter and full year 2023 results of Ross Stores. Earnings per share for Q4 increased to $1.82 from $1.31 in the previous year, and net income rose to $610 million. For the 2023 fiscal year, earnings per share stood at $5.56, reflecting a significant improvement from the previous year. The reports suggest a bullish sentiment towards Ross Stores Inc‘s growth strategies and financial performance.
A look at Ross Stores Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts are optimistic about the long-term outlook for Ross Stores Inc, with high scores in Growth and Momentum indicating a promising future. The company, which operates off-price retail apparel and home accessories stores, has been rated highly in these key areas. A score of 4 in Growth suggests that Ross Stores is expected to expand and increase its market share in the future, while a perfect score of 5 in Momentum signifies strong upward trends that may drive the stock price higher.
While not as high as Growth and Momentum, Ross Stores Inc also received solid scores in Value, Dividend, and Resilience. With a unique business model offering discount prices on name brand and designer products, the company has positioned itself well. The overall positive outlook, supported by these various scores, indicates that Ross Stores Inc may be a solid investment choice for the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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