The same-store sales are expected to range from a 1 per cent decline to a 2 per cent increase, building on the 3 per cent growth recorded in 2024. EPS is expected between $5.95 and $6.55, compared to $6.32 in fiscal 2024 (FY24). Despite challenges, the company remains focused on strategic opportunities and disciplined management.
“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,” said Jim Conroy, chief executive officer (CEO) at Ross Stores.
FY24 financial overview
Ross Stores reported total sales of $21.13 billion in FY24 ended February 1, 2025, reflecting an increase from $20.38 billion in the prior year. Cost of goods sold rose to $15.26 billion, while selling, general, and administrative (SG&A) expenses reached $3.28 billion. Operating income increased to $2.59 billion.
Earnings before taxes grew to $2.76 billion, with a tax provision of $666.42 million. Net earnings rose to $2.09 billion. Basic EPS increased to $6.36 from $5.59, while diluted EPS stood at $6.32.
“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,” added Conroy. “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.”
In the fourth quarter (Q4) of FY24, sales totalled $5.91 billion. Net earnings for the quarter reached $586.78 million, with diluted EPS at $1.79 versus $1.82 a year ago. The net income of the company stood at $587 million, with comparable store sales up 3 per cent on top of a robust 7 per cent gain.
“Fourth quarter sales and earnings results were at the high end of our expectations. Sales benefitted from customers’ positive responses to our improved assortments of quality branded bargains throughout our stores during the critical holiday selling season,” said Conroy.
ALCHEMPro News Desk (SG)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
