- Ross Stores reported strong third-quarter earnings per share of $1.48, beating both the previous year’s $1.33 and the analyst estimate of $1.40.
- Comparable sales increased by 1%, which was lower than both the previous year’s 5% growth and the estimate of 2.59%.
- Quarterly sales reached $5.07 billion, marking a 3% year-over-year increase, though slightly below the estimate of $5.15 billion.
- Ross Stores expanded its total locations to 2,192, a 2% quarterly increase, but just short of the projected 2,194 locations.
- Merchandise inventories rose by 9.4% year-over-year to $2.86 billion, above the $2.7 billion estimate.
- Earnings per share for the fiscal year ending February 1, 2025, are now anticipated to be between $6.10 and $6.17, compared to last year’s $5.56.
- Ross continues to face challenges as its core low-to-moderate income customers grapple with high essential costs, affecting discretionary spending.
- The company acknowledges that better execution of merchandising initiatives could have improved results.
- Despite underperforming sales, earnings exceeded company expectations.
- Severe weather from Hurricanes Helene and Milton, along with unusual warm temperatures, negatively affected sales performance during the quarter.
- Current analyst recommendations include 16 buys, 6 holds, and 1 sell.
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Ross Stores Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely covering Ross Stores Inc. Recently, they published insightful research reports highlighting the company’s performance and strategic approach. One report titled “Ross Stores Inc.: What Is Its Approach Towards Brand Diversification and Merchandise Strategy? – Major Drivers” discussed Ross Stores’ strong second-quarter results for the fiscal year 2024. The company exceeded initial expectations with a 7% increase in sales to approximately $5.3 billion and a 4% rise in comparable store sales.
Another report by Baptista Research, “Ross Stores Inc.: A Robust Value Offering Serving a Broader Customer Base! – Major Drivers,” analyzed Ross Stores Inc.’s first-quarter performance in 2024. Despite a mixed picture, the company successfully met its Q1 sales guidance and surpassed earnings expectations. Total sales for Q1 2024 grew by 8% to $4.9 billion compared to $4.5 billion in the same period the previous year, showcasing positive momentum within the company.
A look at Ross Stores Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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
According to the Smartkarma Smart Scores, Ross Stores Inc shows a promising long-term outlook. With a solid Growth score of 4 and Momentum score of 4, the company is positioned for potential expansion and market traction.
Despite moderate scores in Value (2), Dividend (2), and Resilience (3), Ross Stores Inc‘s focus on offering discounted name brand and designer products in its off-price retail stores suggests a strategy that could drive continued customer interest and sales.
### Ross Stores, Inc. operates two brands of off-price retail apparel and home accessories stores. Ross Stores offers name brand and designer apparel, accessories, footwear, and home fashions at discount prices. ###
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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