The earnings call reflected a strong financial performance with sales and earnings exceeding expectations and significant expansion in store locations. However, the company remains cautious due to external economic challenges and increased costs. The positive financial outcomes and strategic achievements outweigh the cautionary outlook and cost concerns.

Company Guidance

During the Ross Stores Third Quarter 2023 Earnings Release Conference Call, the company provided guidance for the fourth quarter and fiscal year 2024. Ross Stores expects fourth-quarter same-store sales to rise by 1% to 2%, with earnings per share projected to be between $1.56 and $1.62, compared to $1.31 in the same quarter of the previous year. This forecast includes a $0.02 per share unfavorable impact from the timing of expenses that benefited the third quarter. For the full fiscal year ending February 3, 2024, the company anticipates earnings per share to be in the range of $5.30 to $5.36, versus $4.38 last year. This guidance incorporates a $0.16 per share benefit from an extra 53rd week in fiscal 2023. Total sales for the fourth quarter are projected to grow between 8% and 10%, including an estimated $260 million benefit from the 53rd week. Operating margin is expected to be between 11.3% and 11.5%, compared to 10.7% in the previous year, with a 65-basis point benefit from the extra week. These projections are made against a backdrop of macroeconomic volatility, persistent inflation, and geopolitical uncertainties.

Strong Financial Performance

Sales and earnings surpassed expectations with operating margin increasing to 11.2% from 9.8% last year. Earnings per share rose to $1.33 compared to $1 last year, with net income increasing to $447 million from $342 million.

Positive Sales Growth

Total sales for the quarter were $4.9 billion, up from $4.6 billion last year, with a comparable store sales gain of 5%. Year-to-date sales grew to $14.4 billion with comparable store sales up 4% over last year.

Expansion in Store Locations

Completed the 2023 expansion program with 43 new Ross and 8 dd's Discounts locations, achieving a net increase of 94 stores for the year.

Effective Inventory Management

Total consolidated inventories increased by 5% with average store inventories up 2%, showing efficient inventory control.

Successful Stock Buyback Program

Repurchased 2.1 million shares of common stock for $239 million, on track to buy back $950 million in stock for the year.

Earnings Guidance Upward Revision

Earnings per share for the 53 weeks ending February 3, 2024, are now expected to be in the range of $5.30 to $5.36 versus $4.38 last year.

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Ross Stores (ROST) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

ROST Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 23, 2018	2018 (Q2)	- / 1.04	0.82	26.83% (+0.22)	―	―
Nov 20, 2018	2018 (Q3)	- / 0.91	0.72	26.39% (+0.19)	―	―
Mar 05, 2019	2018 (Q4)	- / 1.20	1.19	0.84% (+0.01)	―	―
May 23, 2019	2019 (Q1)	- / 1.15	1.11	3.60% (+0.04)	―	―
Aug 22, 2019	2019 (Q2)	- / 1.14	1.04	9.62% (+0.10)	―	―
Nov 21, 2019	2019 (Q3)	- / 1.03	0.91	13.19% (+0.12)	―	―
Mar 03, 2020	2019 (Q4)	- / 1.28	1.2	6.67% (+0.08)	―	―
May 21, 2020	2020 (Q1)	- / -0.87	1.15	-175.65% (-2.02)	―	―
Aug 20, 2020	2020 (Q2)	- / 0.06	1.14	-94.74% (-1.08)	―	―
Nov 19, 2020	2020 (Q3)	- / 1.02	1.03	-0.97% (-0.01)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ROST Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 21, 2024	$142.62	$145.75	+2.19%
Aug 22, 2024	$151.79	$154.47	+1.77%
May 23, 2024	$130.90	$141.09	+7.78%
Mar 05, 2024	$147.71	$146.67	-0.70%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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