Ross Stores, Inc. reported sales for the 13 weeks ended February 1, 2025, were $5.9 billion, with fourth quarter comparable store sales up 3 percent on top of a 7 percent gain in the Q4 period in the prior year. Earnings per share for the quarter were $1.79 per share, compared with $1.82 per share for the prior-year quarter. Net income for the period was $587 million, versus $610 million in the prior year.
Fiscal 2024 earnings per share for the 52 weeks ended February 1, 2025 were $6.32, up from $5.56 in the 53-week fiscal 2023 year ended February 3, 2024. Net earnings for fiscal 2024 rose to $2.1 billion on sales of $21.1 billion, up from net earnings of $1.9 billion in fiscal 2023 on sales of $20.4 billion. Comparable store sales for the 52 weeks ended February 1, 2025, grew 3 percent versus a 5 percent gain in fiscal 2023.
The fourth quarter and full-year results included a one-time benefit to earnings, equivalent to approximately 14 cents per share, related to the sale of a packaway facility. Additionally, prior year sales and earnings results for the 2023 fourth quarter and fiscal year included approximately $308 million in sales and a 20 cents earnings per share benefit from the 53rd week.
Jim Conroy, CEO of Ross Stores, commented, “Fourth quarter sales and earnings results were at the high end of our expectations. Sales benefited from customers’ positive responses to our improved assortments of quality branded bargains throughout our stores during the critical holiday selling season.
“Fourth quarter operating margin of 12.4 percent was flat to last year. The benefit from the previously mentioned packaway facility sale was offset by planned declines in merchandise margin and unfavorable timing of packaway-related costs. The sale of the facility contributed about 105 basis points to this year’s fourth quarter operating margin while the 53rd week benefited the prior year’s period by about 80 basis points,” continued Conroy.
Update on Shareholder Payouts
During the recently completed fourth quarter, the retailer repurchased 1.7 million shares for $262 million. For fiscal 2024, Ross also repurchased 7.3 million shares of common stock for an aggregate purchase price of $1.05 billion under the two-year $2.1 billion program announced in March 2024. The company reported that it expected to complete the $1.05 billion remaining under this authorization in fiscal 2025.
The Board of Directors also recently authorized a 10 percent increase in the company’s quarterly cash dividend to $0.405 per share. This higher quarterly dividend amount is payable on March 31, 2025, to stockholders of record as of March 18, 2025.
Conroy noted, “We ended the year with $4.7 billion of cash after funding the growth and capital needs of our business. Our ongoing share buyback and increased dividend programs reflect our longstanding commitment to return excess cash to our shareholders.”
Fiscal 2025 Guidance
Conroy said, looking forward, “While we were pleased with our 2024 results, including the holiday selling period, sales trends began softening later in January and into February. We believe a combination of unseasonable weather and heightened volatility in the macroeconomic and geopolitical environments has negatively impacted customer traffic. Given the lack of visibility we have on these external factors, we believe it is prudent to take a cautious approach in forecasting our business, especially as we start the year.
“For the 13 weeks ending May 3, 2025, comparable store sales are forecasted to be down 3 percent to flat versus a 3 percent gain last year. If sales perform in line with this plan, earnings per share are projected to be $1.33 to $1.47, compared to $1.46 in the first quarter ended May 4, 2024.
“For the 52 weeks ending January 31, 2026, while we hope to do better, we are planning same-store sales of down 1 percent to up 2 percent on top of a 3 percent gain in 2024. Based on these assumptions, fiscal 2025 earnings per share are projected to be $5.95 to $6.55 compared to $6.32 for the fiscal year ended February 1, 2025. As previously mentioned, fiscal 2024 results included a per-share benefit of 14 cents from the facility sale.
Conroy concluded, “We have an incredibly talented and dedicated team at Ross with deep-rooted off-price experience that helped deliver solid results in 2024. As we move forward, we believe that some of the recent challenges we are seeing could be transitory in nature. As we continue to navigate through a difficult external environment, we will search for opportunities to drive the business and to carefully manage what we can control.”
Image courtesy Ross Stores
