Executive Summary
Ross Stores delivered a strong Q4 2024 performance, underscoring the resilience of the off-price model in a consumer environment that remains selective with discretionary spend. Revenue rose to $5.912 billion, up 21.7% year over year and 16.6% quarter over quarter, with gross profit of $1.567 billion and a gross margin of 26.5%. Operating income was $731.0 million, producing an operating margin of approximately 12.3%, while net income reached $586.8 million and diluted GAAP EPS was $1.79–$1.80 for the quarter. The results reflect a favorable mix, disciplined markdowns, and improved efficiency across the operating framework.
Key Performance Indicators
Key Insights
Revenue: $5.912B; YoY growth: 21.7%; QoQ growth: 16.6% | Gross Profit: $1.568B; Gross Margin: 26.53% | Operating Income: $731.0M; Operating Margin: 12.36% | Net Income: $586.8M; Net Margin: 9.92% | EPS (Diluted): $1.79; EPS (Reported): $1.80 | Weighted Avg Shares (Diluted): 328.5M | Cash Flow: Operating cash flow $882.6M; Free cash flow $676.6M | Capex: $206.0M | Dividends: $121.2M; Buybacks: $262.5M | Cash at end of period: $4.796B | Total Debt: $5.682B; Net Debt: $0.952B | Current ratio: 1.62;...
Financial Highlights
Revenue: $5.912B; YoY growth: 21.7%; QoQ growth: 16.6% | Gross Profit: $1.568B; Gross Margin: 26.53% | Operating Income: $731.0M; Operating Margin: 12.36% | Net Income: $586.8M; Net Margin: 9.92% | EPS (Diluted): $1.79; EPS (Reported): $1.80 | Weighted Avg Shares (Diluted): 328.5M | Cash Flow: Operating cash flow $882.6M; Free cash flow $676.6M | Capex: $206.0M | Dividends: $121.2M; Buybacks: $262.5M | Cash at end of period: $4.796B | Total Debt: $5.682B; Net Debt: $0.952B | Current ratio: 1.62; Quick ratio: 1.09; Debt/Equity: 0.98; Debt to Capitalization: 0.50
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.91B |
21.70% |
16.58% |
| Gross Profit |
1.57B |
14.72% |
9.16% |
| Operating Income |
731.02M |
23.67% |
20.99% |
| Net Income |
586.78M |
20.25% |
20.04% |
| EPS |
1.80 |
22.45% |
21.62% |
Key Financial Ratios
operatingProfitMargin
12.4%
operatingCashFlowPerShare
$2.71
freeCashFlowPerShare
$2.08
dividendPayoutRatio
20.7%
Management Commentary
Note: The earnings transcript data were not provided in the supplied materials. Consequently, this section highlights key quantitative outcomes and inferred themes typical of Ross Stores' quarterly communications. - Strengthen omni-channel execution and promotional efficiency to defend margins in a competitive discount retail environment. - Maintain disciplined inventory management and capital discipline (cash flow, buybacks) to support shareholder returns. - Balance sheet flexibility remains a positive asset to fund ongoing investments and potential strategic opportunities while sustaining a modest leverage profile.
Forward Guidance
Formal forward guidance is not included in the provided data. In a macro backdrop of moderate consumer tightening and promotional dynamics, the prudent frame is to monitor: (1) consumer spending trends and comp store sales (including promotional cadence) and (2) cost inputs (logistics, freight, and labor) that could affect gross and operating margins. Ross Stores has demonstrated strong free cash flow generation and the capacity to fund share repurchases and dividends, which supports downside resilience. Ongoing investments in e-commerce enablement and store-level productivity are potential margin and growth catalysts if managed with discipline. Key factors to watch: comp store sales trajectory, gross margin sensitivity to promotional activity, inventory turnover and days on hand, and the pace of buyback activity relative to capital needs.