Ross Stores reported robust first quarter results for fiscal 2024, with sales increasing 8.1% to $4.86 billion and net earnings rising 31% to $488 million compared to the same period last year. Comparable store sales grew 3%, while earnings per share jumped to $1.46 from $1.09. The strong performance was driven by improved operating margins and continued store expansion, with 18 new locations opened during the quarter.The company demonstrated significant margin improvement, with cost of goods sold decreasing 140 basis points to 71.9% of sales, primarily due to lower distribution costs, reduced buying costs, and decreased domestic freight expenses. Selling, general and administrative expenses as a percentage of sales declined 65 basis points, benefiting from higher sales and lower incentive compensation costs. Interest income increased substantially to $63.2 million due to higher...Show More

Ross Stores reported robust first quarter results for fiscal 2024, with sales increasing 8.1% to $4.86 billion and net earnings rising 31% to $488 million compared to the same period last year. Comparable store sales grew 3%, while earnings per share jumped to $1.46 from $1.09. The strong performance was driven by improved operating margins and continued store expansion, with 18 new locations opened during the quarter.The company demonstrated significant margin improvement, with cost of goods sold decreasing 140 basis points to 71.9% of sales, primarily due to lower distribution costs, reduced buying costs, and decreased domestic freight expenses. Selling, general and administrative expenses as a percentage of sales declined 65 basis points, benefiting from higher sales and lower incentive compensation costs. Interest income increased substantially to $63.2 million due to higher interest rates and cash balances.Looking ahead, Ross Stores plans to open approximately 90 new stores in fiscal 2024 and has authorized a new $2.1 billion stock repurchase program through fiscal 2025. The company maintains a strong financial position with $4.7 billion in unrestricted cash and expects continued growth despite ongoing macroeconomic pressures affecting their low-to-moderate income customers. Management remains focused on offering compelling values while carefully managing expenses and inventory.