- Ross Stores’ 1Q earnings per share (EPS) beat estimates, coming in at $1.46 versus last year’s $1.09, and beating the estimate of $1.35.
- The sales for the quarter reached $4.86 billion, which is an 8.1% increase from last year. The estimated sales were $4.82 billion.
- The total location count for Ross Stores is now 2,127, which is a 0.9% increase from the last quarter and higher than the estimated 2,125 locations.
- The merchandise inventories for Ross Stores are now valued at $2.46 billion, which is a 9.8% increase from last year, meeting the estimated value.
- For the second quarter, earnings per share are predicted to be between $1.43 to $1.49, which is an increase from the previous year’s EPS of $1.32.
- Ross Stores CEO Barbara Rentler stated that despite macroeconomic pressures affecting customer spending, the first quarter sales met expectations.
- The earnings results for the quarter were better than expected, primarily because of lower expenses than planned.
- The improvement in earnings was primarily due to lower distribution, incentive, and freight costs, offset by a planned decline in merchandise margin.
- Rentler added that based on 1Q results and forward guidance, the comparable store sales for 52 weeks ending February 1, 2025, are expected to increase by 2% to 3%.
- The EPS for the 2024 fiscal year is now projected to be between $5.79 to $5.98, up from $5.56 from the 53 weeks ended on February 3, 2024.
- Current analyst ratings for Ross Stores are 17 buys, 4 holds, and 1 sell.
Ross Stores Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are bullish on Ross Stores Inc after the company delivered strong fourth-quarter and full-year 2023 results, surpassing management’s expectations. Baptista Research highlights key drivers for Ross Stores’ success, including strategic category expansion and improved customer attraction. Earnings per share for Q4 rose to $1.82, up from $1.31 the previous year, with net income reaching $610 million compared to $447 million. For the full fiscal year 2023, earnings per share were $5.56, up from $4.38.
In a separate report, Baptista Research emphasizes Ross Stores Inc.’s focus on value-driven changes across categories as a major driver of success. The company exceeded analyst expectations with a revenue and earnings increase of 11.2% compared to the previous year. Ross Stores reported $14.4 billion in sales for the year-to-date period, showing a 4% rise in comparable store sales. The company is strategically expanding, on track to end the year with 1,764 Ross stores and 345 dd’s DISCOUNTS, marking a net increase of 94 stores.
A look at Ross Stores Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Based on the Smartkarma Smart Scores for Ross Stores Inc, the company holds a favorable long-term outlook. With a Growth score of 5, indicating strong potential for expansion and improvement, Ross Stores Inc seems well-positioned for future success. Moreover, the Resilience and Momentum scores of 3 each suggest that the company has the ability to adapt to market challenges and maintain positive performance trends.
Despite having lower scores in Value and Dividend categories, the overall outlook for Ross Stores Inc appears optimistic, primarily driven by its exceptional Growth score. As a company that operates off-price retail stores offering a wide range of discounted name brand and designer products, Ross Stores Inc is likely to continue attracting customers seeking quality merchandise at affordable prices, contributing to its growth and resilience in the competitive retail industry.
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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