Ross Stores Q4 earnings improve

Ross Stores, Inc. reported earnings per share for the fourth quarter of 1.31 dollars on net income of 447 million dollars compared to 1.04 dollars on net earnings of 367 million dollars for the same quarter last year.

For the 2022 fiscal year earnings per share were 4.38 dollars on net income of 1.5 billion dollars compared to 4.87 dollars per share on net earnings of 1.7 billion dollars in 2021.

Sales for the quarter were 5.2 billion dollars, with comparable store sales up 1 percent on top of a 9 percent increase for the same period in 2021. Sales for 2022 were 18.7 billion dollars versus 18.9 billion dollars in fiscal 2021, with comparable store sales down 4 percent versus a 13 percent increase in the prior year.

Commenting on the trading update, Barbara Rentler, the company’s CEO said in a release: “During a very competitive holiday season, fourth quarter sales and earnings exceeded our guidance due to customers’ positive response to our improved assortments and stronger value offerings.”

The company’s board of directors recently increased the quarterly cash dividend by 8 percent to 0.335 cents per share to be payable on March 31, 2023 to stockholders of record as of March 14, 2023.

Looking ahead, Rentler added: “As we enter 2023, the macroeconomic and geopolitical environments remain highly uncertain. For the 52 weeks ending January 27, 2024, we are planning comparable store sales to be relatively flat versus a 4 percent decline and a 13 percent gain in fiscal 2022 and 2021, respectively. If sales perform in line with this plan, we expect earnings per share to be 4.65 dollars to 4.95 dollars compared to 4.38 dollars in fiscal 2022.”

“With elevated inflation continuing to impact our low-to-moderate income customer, we are also planning comparable store sales to be relatively flat for the 13 weeks ending April 29, 2023. This compares to a 7 percent decrease and a 13 percent gain in the first quarters of 2022 and 2021, respectively. If sales perform within this range, we expect earnings per share to be 99 cents to 1.05 dollars versus 97 cents last year,” Rentler said.