Ross Stores, Inc. reported sales for the 2024 third quarter were $5.1 billion, up from $4.9 billion in the prior-year Q3 period, with a comparable store sales gain of 1 percent.

“We are disappointed with our third quarter sales results as business slowed from the solid gains we reported in the first half of 2024,” offered Barbara Rentler, CEO, Ross Stores, Inc. “Although our low-to-moderate income customers continue to face persistently high costs on necessities pressuring their discretionary spending, we believe we should have better executed some of our merchandising initiatives. In addition, a combination of severe weather during the quarter from Hurricanes Helene and Milton, along with unseasonably warm temperatures, also negatively impacted our results.”

Operating margin for the quarter was 11.9 percent, up from 11.2 percent in Q3 last year, as lower incentive, freight, and distribution costs more than offset the planned decline in merchandise margin.

Rentler continued, “Despite the below-plan sales results, earnings were ahead of our expectations.”

Earnings per share for the third quarter was $1.48, up from $1.33 per share for the 13 weeks ended October 28, 2023. Net income for the period rose to $489 million versus $447 million in Q3 last year.

  • Year-to-Date Summary
    Sales for the first nine months of 2024 (YTD) were $15.2 billion, with comparable store sales up 3 percent over the prior-year year-to-date period.
  • For the 2024 YTD period, earnings per share were $4.53 on net earnings of $1.5 billion, versus $3.74 per share on net income of $1.3 billion for the same year-to-date period in 2023.

Fourth Quarter Guidance

  • For the 13-week fourth quarter ending February 1, 2025, Ross Stores continues to project comparable store sales to increase 2 percent to 3 percent year-over-year.
  • Earnings per share for the fourth quarter are planned to be in the range of $1.57 to $1.64, compared to $1.82 for the 14 weeks ended February 3, 2024.

This guidance range includes an unfavorable impact of approximately 3 cents per share primarily from the timing of packaway-related expenses that benefited the third quarter.

Full-Year Forecast
Based on the company’s year-to-date results and fourth quarter forecast, earnings per share for the 52 weeks ending February 1, 2025 are now expected to be in the range of $6.10 to $6.17 versus $5.56 last year.

Both the 2023 fourth quarter and full year results included an approximate 20 cents earnings per share benefit from the 53rd week.

Rentler concluded, “We remain confident that our ongoing focus and commitment to delivering the most compelling values possible will enable us to maximize our potential for profitable growth now and in the future.”