Ross Stores, Inc. reported sales for the second quarter were $4.9 billion versus $4.6 billion in the prior-year period. Comparable store sales were up 5 percent, partially reversing the 7 percent comp store sales decline in the second quarter of 2022.
Net income was $446 million, or $1.32 per share, in the second quarter, compared to net income of $385 million, or $1.11 per share, in the prior-year period.
Cash & Cash Equivalents was $4.6 billion at quarter-end, up from $3.9 billion the prior-year quarter-end.
Inventory was $2.3 million at quarter-end, down from $2.7 million at the end of Q2 last year.
“We are pleased with our second quarter results, with both sales and earnings well above our expectations,” commented Barbara Rentler, CEO, Ross Stores, Inc. “Along with easing inflationary pressures, customers responded well to our improved value offerings throughout our stores. Second quarter operating margin was flat to last year at 11.3 percent.”
Looking ahead, Rentler commented, “Despite the recent moderation in inflation, our low-to-moderate income customer continues to face persistently higher costs on necessities. As such, we believe it is prudent to continue to plan the business cautiously. However, given our improved second-quarter performance, we are raising our second-half sales and earnings outlook. We are now planning comparable store sales for the third and fourth quarters of 2023 to be up 2 percent to 3 percent and up 1 percent to 2 percent, respectively. Based on these assumptions, same-store sales for the 52 weeks ending January 27, 2024, are forecast to be in the range of up 2 percent to 3 percent.”
She continued, “If the second half performs in line with these updated sales assumptions, earnings per share for the third quarter are projected to be $1.16 to $1.21 versus $1.00 last year and $1.58 to $1.64 for the fourth quarter, compared to $1.31 in 2022. Based on our first-half results and second-half guidance, earnings per share for the 53 weeks ending February 3, 2024, are now planned to be in the range of $5.15 to $5.26 versus $4.38 last year. Incorporated in this updated guidance range is an estimated benefit to earnings per share of approximately $0.16 from the 53rd week in fiscal 2023.”
Rentler concluded, “Moving forward, we remain focused on delivering the most compelling bargains possible while also carefully managing our expenses and inventory to maximize our potential for both sales and earnings growth. Longer-term, we believe the rigorous execution of our off-price business model will allow us to consistently deliver solid results.”
Photo courtesy Ross Stores
