Ross Stores (ROST) Q2 2025 earnings summary

Executive summary

• Q2 2024 sales rose 7.1% year-over-year to $5.29 billion, driven by a 4% comparable store sales increase and 87 net new stores.

• Net income for Q2 2024 was $527 million, up 18% from the prior year, with diluted EPS at $1.59 versus $1.32.

• Operating margin improved by 115 basis points to 12.5% in Q2 2024, driven by higher sales and lower distribution and incentive costs.

• Year-to-date sales reached $10.15 billion, up from $9.43 billion, and comparable sales rose 3%.

• Ross operated 2,148 stores at quarter-end, maintaining its position as the largest off-price apparel and home fashion chain in the U.S.

Financial highlights

• Q2 2024 sales: $5.29 billion, up from $4.93 billion in Q2 2023; six-month sales: $10.15 billion, up 7.6% year-over-year.

• Net earnings for Q2 2024: $527 million (10.0% of sales), up from $446 million (9.0%) last year.

• Diluted EPS for Q2 2024: $1.59, up from $1.32; six-month diluted EPS: $3.05, up from $2.41.

• Operating margin improved to 12.5% from 11.3% year-over-year.

• Operating cash flow for six months: $961 million, down from $1.12 billion year-over-year, mainly due to higher incentive compensation payments.

Outlook and guidance

• Comparable sales growth of 2%-3% is planned for both Q3 and Q4 2024, on top of strong prior-year gains.

• Q3 2024 EPS expected between $1.35-$1.41; Q4 2024 EPS between $1.60-$1.67.

• Full-year 2024 EPS guidance raised to $6.00-$6.13, up from $5.56 in fiscal 2023.

• On track to open approximately 90 new stores in fiscal 2024.

• Capital expenditures for fiscal 2024 projected at $780 million, focused on supply chain, new stores, and IT investments.