What is Ross Stores's latest dividend and current dividend yield?

What is Ross Stores's gross profit margin?

What is the revenue and EPS growth rate for Ross Stores year over year?

What were the key takeaways from Ross Stores's earnings call?

What guidance did Ross Stores's management provide for the next earnings period?

Did Ross Stores beat or miss consensus estimates last quarter?

What does Ross Stores do and what are its main business segments?

What were the key takeaways from Ross Stores’s earnings call?

- **Revenue Growth**: Q3 sales up 10% to $5.6B, with 7% comp store growth driven by cosmetics, shoes, and ladies apparel.
- **Tariff Mitigation**: Q4 tariff impact negligible, with 2025 full-year cost of $0.16 per share.
- **Holiday Guidance**: Raised Q4 EPS to $1.77-$1.85 (3%-4% comp growth) and full-year to $6.38-$6.46.
- **Store Expansion**: 90 new stores opened in 2025, with Northeast expansion successful. dd's growth to accelerate.
- **Branded Strategy**: Ladies business outperformed chain, with sequential improvement across categories.
- **Marketing Success**: New campaigns reengaged customers, with no increase in marketing spend as a percentage of sales.

**【CEO Summary Section】**
- Q3 2025 total sales grew 10% to $5.6 billion, with comparable store sales up 7%, driven by strong performance in cosmetics, shoes, and ladies categories.
- Tariff-related costs impacted EPS by $0.05 in Q3, but fourth-quarter tariff costs are expected to be negligible.
- Holiday season inventory is well-positioned, with 36% of total inventories in packaway merchandise.
- 36 new Ross stores and 4 dd's DISCOUNTS stores opened in Q3, with strong performance in new markets like New York Metro.
- Branded strategy has accelerated sales, particularly in ladies apparel, with sequential improvement across categories.

**【CFO Financial Commentary】**
- Q3 2025 EPS was $1.58 on net income of $512 million, compared to $1.48 in the prior year. Year-to-date EPS was $4.61.
- Operating margin was 11.6%, impacted by tariffs and distribution costs, but improved through cost control.
- Fourth-quarter guidance raised to EPS of $1.77-$1.85, reflecting 3%-4% comparable store sales growth and holiday momentum.
- Full-year 2025 EPS guidance updated to $6.38-$6.46, up from previous range.

**【Q&A Highlights】**
- **Sales Acceleration Drivers**: CEO attributes 7% comp growth to broad-based merchandise strength, marketing campaigns, and store execution. Tariffs and macro uncertainty were partially offset by strategic pricing and vendor partnerships.
- **Marketing Effectiveness**: New campaigns and refreshed branding have reengaged customers, with early success in TikTok and Meta analytics. Marketing spend as a percentage of sales remains unchanged.
- **Inventory Management**: Q3 ended with 15% average store inventory growth, positioning for holiday. Tariff-related costs in Q4 are expected to be negligible.
- **Store Expansion**: Northeast expansion is successful, with New York Metro stores outperforming expectations. dd's DISCOUNTS growth will accelerate in 2026.
- **Tariff Mitigation**: Merchant teams secured cost concessions and closeouts, offsetting tariff impacts. 2026 pricing stability expected if tariffs remain unchanged.
- **Ladies Business Growth**: Branded strategy drove ladies comp growth above chain average, with potential for continued outperformance.

**【Key Initiatives】**
- Self-checkout rolled out to 80 stores, reducing shrink and improving customer experience. Further rollout planned for 2026.
- Store refresh program halfway complete, with positive customer feedback on modern signage and wayfinding.

Ross Stores, Inc. (ROST) Q3 2026 Earnings Call Transcript

- **Sales Recovery**: Q2 sales up 5% with cosmetics and Southeast/Midwest leading; back-to-school rebound signals Q3 strength.
- **Tariff Mitigation**: Teams reduced tariff impact to $0.11/share in Q2; expect $0.07-$0.08/Q3 and $0.04-$0.06/Q4.
- **Expansion Success**: 28 new Ross stores opened, including Puerto Rico, with strong early sales.
- **Share Buybacks**: $1.05B buyback on track, supporting EPS growth despite macro challenges.
- **Branded Strategy Payoff**: Cosmetics comp growth highlights success of branded closeout strategy.

**【CEO Summary Section】**
- **Q2 Sales Growth**: Total sales rose 5% to $5.5 billion, with comparable store sales up 2%. Cosmetics and the Southeast/Midwest regions led performance.
- **New Store Expansion**: Opened 28 Ross and 3 dd's DISCOUNTS locations, including inaugural Puerto Rico stores. On track for 90 new openings in 2025.
- **Tariff Mitigation**: Teams reduced tariff impact through vendor negotiations, closeout expansion, and strategic pricing. Anticipate modest Q3 pressure, improving in Q4.
- **Back-to-School Strength**: July sales rebounded sharply, driven by early back-to-school demand, setting a positive tone for Q3.

**【CFO Financial Commentary】**
- **Q2 Financials**: GAAP net income $508M (EPS $1.56), down 3.8% YoY. Operating margin 11.5%, down 95bps due to tariffs ($0.11/share impact).
- **Guidance**: Q3 EPS $1.31-$1.37 (vs. $1.48 last year), Q4 $1.74-$1.81 (vs. $1.79). Full-year EPS $6.08-$6.21 (vs. $6.32). Includes $0.22-$0.25 tariff impact.
- **Share Buybacks**: Repurchased 1.9M shares ($262M) in Q2, on track for $1.05B annual target.

**【Q&A Highlights】**
- **Pricing Strategy**: AUR increases minimal (low single-digit), cautious to maintain value proposition. Will follow market if broader price hikes occur.
- **Tariff Mitigation Progress**: Merchants reduced tariff impact through sourcing diversification and closeouts. Q3/Q4 impacts expected to ease.
- **Store Performance**: New Puerto Rico and New York Metro stores exceeded expectations. dd's DISCOUNTS outperformed Ross in Q2.
- **Branded Strategy**: Cosmetics comp growth driven by branded closeouts and vendor partnerships. Home category showed improvement in July.
- **Labor Market**: Stable workforce turnover; no significant wage pressure despite industry trends.

Ross Stores, Inc. (ROST) Q2 2025 Earnings Call Transcript

- **Q1 Sales Resilience**: Flat comparable store sales amid macro challenges, driven by cosmetics and Southeast regional strength.
- **Tariff Headwinds**: Q2 EPS guidance includes $0.11–$0.16 tariff impact, with strategies to mitigate via closeouts and vendor collaboration.
- **Inventory Strength**: 88% year-over-year inventory growth reflects proactive buying, with 41% in tariff-free packaway goods.
- **Brand Momentum**: dd's DISCOUNTS brand continues to deliver solid sales and profits, complementing Ross' core business.
- **Guidance Withdrawal**: Uncertainty over consumer sentiment and trade policy leads to annual guidance pullback, but off-price model remains resilient.

**【CEO Summary Section】**
- Q1 2025 total sales grew 3% to $5 billion, with comparable store sales flat year-over-year. Net income was $479 million, and EPS was $1.47.
- Cosmetics and the Southeast region led sales growth, while dd's DISCOUNTS brand maintained strong performance with solid sales and profits.
- Inventory increased 88% year-over-year due to opportunistic buys, but average store inventory rose only 4%, aligning with plans. Packaway merchandise represented 41% of total inventory, similar to last year.
- Tariffs on Chinese imports (over 50% of merchandise) could pressure margins, but strategies like closeout utilization and vendor negotiations aim to mitigate impacts.
- Annual guidance was withdrawn due to macroeconomic uncertainty, though the off-price model is expected to benefit from supply chain disruptions.

**【CFO Financial Commentary】**
- Q1 operating margin was 12.2%, flat year-over-year. Merchandise margin declined 45 basis points due to higher ocean freight and tariffs.
- Second quarter guidance: comparable store sales flat to +3%, EPS $1.40–$1.55 (including $0.11–$0.16 tariff impact). Operating margin projected at 10.7%–11.4%, with tariffs reducing margins by 90–120 basis points.
- 31 new stores (28 Ross, 3 dd's) expected in Q2. Share buybacks on track for $1.05 billion in 2025.

**【Q&A Key Takeaways】**
- **Tariff Mitigation**: Utilizing existing packaway inventory, renegotiating vendor costs, and shifting country of origin where feasible. Second quarter includes costs for goods in transit during tariff hikes.
- **Consumer Behavior**: Broad-based sales improvement in Q1, with no significant income-level segmentation. Basket size growth offset traffic declines, driven by unit volume.
- **Brand Strategy**: Branded product strategy is maturing, with no ongoing margin drag. Women's apparel performed in line with chain average, suggesting early success.
- **Children's Category**: No notable underperformance; management avoids calling out non-material trends.
- **Pricing Elasticity**: Discretionary categories may see price adjustments, but Ross will maintain value gap vs. traditional retailers.
- **Tariff Longevity**: Uncertainty remains, but off-price sector historically benefits from supply chain disruptions.


Ross Stores, Inc. (ROST) Q1 2025 Earnings Call Transcript

- **Q4 Strong Finish**: $5.9B sales, 3% comp growth driven by holiday strength in cosmetics and children's apparel. 
- **FY25 Cautionary Guidance**: Q1 sales -3% to flat; full year EPS $5.95-$6.55. 
- **Key Risks**: External macro volatility impacting traffic; cautious inventory management. 
- **Strategic Focus**: Enhancing store experience, opportunistic marketing, and closeout buying to maintain margin discipline.

**【CEO Opening Remarks】**
- **Q4 2024 Results**: Sales of $5.9B (+3% comparable store sales vs. +7% last year), EPS $1.79 (down from $1.82). Full year EPS $6.32 (+14% YoY). 
- **Key Drivers**: Strong holiday performance in cosmetics, children's apparel; Pacific Northwest and Texas regions outperformed. 
- **Inventory Management**: +12% total inventory, 41% packaway penetration. 75 new Ross stores and 14 dd's DISCOUNTS opened in FY24. 
- **Share Buybacks & Dividends**: $1.05B repurchased in FY24; $0.405 quarterly dividend (+10%). 

**【CFO Financial Details】**
- **Q4 Margins**: 12.4% operating margin (flat YoY), 105bps boost from facility sale. 
- **FY25 Guidance**: 
  - Q1 2025: Comparable sales -3% to flat vs. +1.4% last year; EPS $1.33-$1.47. 
  - Full Year: Comparable sales -1% to +2%; EPS $5.95-$6.55. 
- **Key Assumptions**: Merchandise margin neutral; $855M capex for store upgrades. 

**【Q&A Highlights】**
- **Regional Performance**: Pacific Northwest and Texas led Q4; California and Florida in line with chain. 
- **Customer Trends**: Softness in Q1 driven by weather and macro uncertainty; traffic decline in Feb. 
- **Merchandising Strategy**: Maintaining quality branded assortment focus; opportunistic closeout buys. 
- **Marketing & Store Investment**: Exploring incremental marketing spend; ongoing store fleet upgrades.

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