Executive Summary
Ross Stores Inc reported solid profitability in QQ3 2024 with revenue of USD 5.071B, up 4.39% year-over-year and down 4.09% quarter-over-quarter. The gross margin stood at 28.34%, and operating margin near 11.9%, underscoring durable cost discipline within the off-price model. Net income of USD 488.8M and EPS of USD 1.48 reflect continued earnings power despite modest sequential pullbacks in revenue.
The company generated robust operating cash flow of USD 513.4M and delivered free cash flow of USD 333.0M, enabling meaningful capital allocation activity including a USD 285.7M share repurchase and USD 121.7M in dividends. Balance sheet liquidity remains strong with USD 4.35B of cash and equivalents and total debt of USD 5.73B, yielding a net debt position of USD 1.385B. Key liquidity and efficiency metrics show a healthy working capital profile: DSO around 3.1 days, DIO around 70.8 days, and a cash conversion cycle of about 15.8 days.
Looking ahead, management did not publish formal forward guidance in the provided data. Nevertheless, the off-price model historically provides resilience in consumer spending environments while continuing to emphasize inventory discipline, store productivity, and selective capital allocation. Investors should monitor macro consumer trends, competitive dynamics (notably TJX and other off-price peers), online penetration, and the company’s ability to sustain margin performance while expanding its footprint and omnichannel capabilities.
Key Performance Indicators
Key Insights
Revenue: USD 5,071,354,000; YoY +4.39%; QoQ -4.09%
Gross Profit: USD 1,437,071,000; YoY +5.10%; QoQ -3.91%
Operating Income: USD 604,216,000; YoY +2.22%; QoQ -8.35%
Net Income: USD 488,808,000; YoY +0.17%; QoQ -7.27%
EPS: USD 1.48; YoY +0.68%; QoQ -7.50%
Gross Margin: 28.34%
Operating Margin: 11.92%
Net Margin: 9.64%
EBITDA: USD 773,941,000; EBITDA Margin: 15.26%
Weighted Avg Shares: 329,937,000
Operating Cash Flow: USD 513,389,000
Free Cash Flow: USD 333,002,000
Cash and Cash Equivalents: USD 4...
Financial Highlights
Revenue: USD 5,071,354,000; YoY +4.39%; QoQ -4.09%
Gross Profit: USD 1,437,071,000; YoY +5.10%; QoQ -3.91%
Operating Income: USD 604,216,000; YoY +2.22%; QoQ -8.35%
Net Income: USD 488,808,000; YoY +0.17%; QoQ -7.27%
EPS: USD 1.48; YoY +0.68%; QoQ -7.50%
Gross Margin: 28.34%
Operating Margin: 11.92%
Net Margin: 9.64%
EBITDA: USD 773,941,000; EBITDA Margin: 15.26%
Weighted Avg Shares: 329,937,000
Operating Cash Flow: USD 513,389,000
Free Cash Flow: USD 333,002,000
Cash and Cash Equivalents: USD 4,349,262,000
Total Debt: USD 5,734,476,000
Net Debt: USD 1,385,214,000
Current Ratio: 1.57; Quick Ratio: 0.98; Cash Ratio: 0.90
Days Sales Outstanding: 3.13; Days Inventory Outstanding: 70.80; Days Payables Outstanding: 58.11; Cash Conversion Cycle: 15.82 days
Payout Ratio: 24.9%; Dividend Yield: 0.263%
Price-to-Book: 8.79x; Price-to-Sales: 9.12x; Price-to-Earnings: 23.66x; EV/EBITDA: 62.81x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.07B |
4.39% |
-4.09% |
| Gross Profit |
1.44B |
5.10% |
-3.91% |
| Operating Income |
604.22M |
2.22% |
-8.35% |
| Net Income |
488.81M |
0.17% |
-7.27% |
| EPS |
1.48 |
0.68% |
-7.50% |
Key Financial Ratios
operatingProfitMargin
11.9%
operatingCashFlowPerShare
$1.55
freeCashFlowPerShare
$1.01
dividendPayoutRatio
24.9%
Management Commentary
No earnings call transcript data provided for QQ3 2024. As a result, key themes, management stance, and direct quotes could not be extracted from the transcript within the supplied dataset.
Forward Guidance
No formal forward guidance was published in the provided data for QQ3 2024. Given Ross Stores’ operating model and recent performance, a cautious constructive outlook is reasonable. Potential drivers include: (1) sustained demand in off-price retail supporting stable traffic and ticket size, (2) continued efficiency in inventory management and cost controls, and (3) ongoing capital discipline including modest share repurchases and dividends. Risks to outlook include consumer spending softness, escalating competitive pressure from TJX and other discount retailers, and potential macro headwinds affecting discretionary spending. Monitoring points for investors: trajectory of comparable store sales, online penetration growth, gross margin stability in response to freight and input cost changes, inventory levels and turns, and the cadence of capital returns.