ROSS STORES Reports Fourth Quarter FY2023 Earnings Results on February 28 2023.
March 26, 2023
Earnings Overview
ROSS STORES ($NASDAQ:ROST) reported their earnings results for the fourth quarter of FY2023 – ending on January 31, 2023 – on February 28, 2023, with total revenue of USD 447.0 million – a 21.9% increase from the same period in the previous year. Net income for the quarter was reported as USD 5214.2 million, representing a 3.9% increase from the same quarter in the previous year.
Transcripts Simplified
Ross Stores reported a 1% increase in comparable store sales for the quarter, driven by growth in the size of the average basket. This near-flat sales performance caused operating margin to increase 90 basis points within the quarter. Looking ahead to fiscal 2023, Ross Stores is planning for comparable store sales to remain relatively flat. If sales perform in line with this plan, Ross Stores expects earnings per share for 2023 to be in the range of $4.65 to $4.95 compared to $4.38 in fiscal 2022. This guidance range includes an estimated benefit from the 53rd week.
Additionally, Ross Stores is looking to open about 100 new locations comprised of about 75 Ross and 25 dd’s DISCOUNTS for the year. Net interest income is estimated to be $115 million and depreciation amortization expense inclusive of stock-based amortization is forecast to be about $570 million for the year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ross Stores. More…
| Total Revenues | Net Income | Net Margin |
| 18.7k | 1.51k | 8.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ross Stores. More…
| Operations | Investing | Financing |
| 1.69k | -654.07 | -1.41k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ross Stores. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.42k | 9.13k | 12.03 |
Key Ratios Snapshot
Some of the financial key ratios for Ross Stores are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | -2.5% | 10.6% |
| FCF Margin | ROE | ROA |
| 5.5% | 30.0% | 9.3% |
Price History
The stock opened at $110.9 per share on Tuesday and closed at $110.5, down by 0.3% from the previous closing price of $110.9. Despite the decreases, ROSS STORES’ CEO announced that they are focusing on cost-cutting measures and strategic initiatives to improve their financial performance in the future. They are also investing in digital initiatives and expanding their product offerings to keep up with customer demands.
Overall, ROSS STORES reported a lower-than-expected fourth quarter for FY2023, though their long-term outlook remains positive. The company believes that their investments and cost-cutting measures will lead to improved profitability in the coming quarters. Live Quote…
Analysis
GoodWhale has conducted an analysis of ROSS STORES and based on this, ROSS STORES is a low risk investment. Our risk rating reveals that the financial and business aspects of the company are all good. We invite potential investors to become registered users and to check out the areas with potential risks. Through this, users can easily take informed decisions when it comes to investing in ROSS STORES. More…
Peers
Though it may not seem like it at first, the retail industry is actually fiercely competitive. This is especially true for those in the discount retail sector, where companies like Ross Stores Inc. must compete with the likes of Burlington Stores Inc, Kohl’s Corp, and Chiyoda Co Ltd. In order to stay ahead, Ross Stores Inc. has to offer low prices and a good selection of merchandise.
– Burlington Stores Inc ($NYSE:BURL)
Burlington Stores Inc is an American off-price department store retailer, headquartered in Burlington, New Jersey. It was founded in 1972 and has grown to operate over 700 stores in 45 states and Puerto Rico. The company offers a wide variety of merchandise, including clothing, shoes, accessories, home décor, and more. Burlington Stores Inc has a market cap of 9.89B as of 2022. The company’s return on equity is 28.14%. Burlington Stores Inc is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol “BURL.”
– Kohl’s Corp ($NYSE:KSS)
Kohl’s Corp is a publicly traded company with a market cap of 3.66B as of 2022. The company has a return on equity of 16.46%. Kohl’s Corp is a retail company that operates department stores in the United States. The company was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
– Chiyoda Co Ltd ($TSE:8185)
Chiyoda Co Ltd is a Japanese engineering company. The company has a market cap of 26.54B as of 2022 and a Return on Equity of -2.63%. The company provides engineering, procurement, and construction services for the oil, gas, chemicals, power, and other industries.
Summary
ROSS STORES reported strong results for the fourth quarter of FY2023. Total revenue rose 21.9% year-over-year to USD 447.0 million, while net income increased 3.9% to USD 5214.2 million. Investors may be encouraged by the company’s ability to drive revenue and profit growth despite the challenging retail environment.
Further, its strong cash flow generation gives it the flexibility to pursue strategic initiatives such as acquisitions and investments in its stores. Moving forward, investors should focus on ROSS STORES’ ability to capitalize on its competitive advantages and adapt to the changing landscape.
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